USPS awards domestic air contract to UPS
Agreement expands business relationship
The U.S. Postal Service today awarded a contract to United Parcel Service (UPS), significantly enhancing a business relationship involving the domestic air transportation of mail. The agreement calls for UPS to transport primarily First Class and Priority mail to and from 98 U.S. cities.
Today’s agreement is a three-year arrangement with the possibility of a two-year extension. Currently, UPS provides the Postal Service with mail transportation to and from 16 U.S. cities.
“The Postal Service is one of the largest users of air transportation in the nation and UPS operates one of the world’s largest airlines,” said Postmaster General John E. Potter. “It only makes sense for the Postal Service to take advantage of the reach offered by UPS. The added advantage of the similarity of our operations will only enhance the Postal Service’s ability to provide the highest levels of service for out customers.”
Further, Potter added that it is prudent for the Postal Service to work with suppliers that have the transportation of like commodities as a principal mission.
UPS Chairman and Chief Executive Officer Michael L. Eskew also said the agreement is a win-win situation for both companies. “We are excited about expanding our relationship with USPS. We can help support the Postal Service’s service commitment to its mail customers while creating new growth opportunities for our company.”
Service under the contract will begin July 1, 2006. Postal Service customers will see no change in the way their mail is delivered as the result of this contract. Post Office retail operations are also unaffected.
source: USPS Press Release
