Transportation Update as of June 6, 2005

According to the U.S. Postal Service (USPS) the following is transpiring:
1. American Airlines and U.S. Air are still in a test mode to determine if they will retain their respective air mail contracts that were temporarily terminated for poor performance. Results are encouraging and a decision by the USPS on American will be made in mid-June.
2. A proposal from a cargo carrier for the transport of “lives” throughout the country has been received – rates are lane specific. It is being evaluated as to where they can best be utilized and a meeting with the carrier and USPS is scheduled for June 17th.
3. Northwest Airlines has a separate contract with the USPS to carry lives from Minneapolis-St. Paul (MSP) and Detroit (DTW) at a $.80 per pound additional surcharge. It signed a subcontract with Airborne for carrying “lives.” They began their five (5) city test on May 28th and expand cities in thirty (30) days. The five (5) hubs are: Minneapolis-St. Paul (MSP), Detroit (DTW), Memphis (MEM), Los Angeles (LAX), & San Francisco (SFO). [Note: Airborne does not currently accept “lives,” however, they are reconsidering their position. If Airborne does accept lives it will open up a very large area for our transportation of “lives”].
4. Delta unilaterally determined it would not take transfers of airmail. It would ship from A to B but not A to B to C. BSA believes that this decision is in conflict with the legislation that BSA was instrumental in obtaining that basically says that “if you tote the mail by air, you tote all the mail to its destination.” USPS informs BSA that it is looking into the legal aspects of the policy.
Steve Boynton, Lobbyist

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