Thursday, February 17, 2005

USPS stops using American Airlines and US Airways

Latest in Logistics: U.S. Postal Services no longer to use American Airlines or U.S. Airways

2/16/2005

Purchasing.com

The U.S. Postal Service has stopped using American Airlines and US Airways to deliver domestic mail because the two carriers failed to meet performance goals, including on-time delivery.

The suspension took effect Feb. 12 and covers first-class mail and some small packages shipped priority class. Jim Quirk, a Postal Service spokesman, said the agency notified the airlines in December that the USPS 'needed a plan from them to meet the goals' for on-time delivery. He said the post office was optimistic that the two airlines could make corrections and soon be carrying mail again. American spokesperson Tim Wagner said: 'We are talking with them about aspects of our business relationship and ways to improve our performance.' Post office officials estimate that American typically carries about 10% of domestic mail. US Airways spokesman David Castelveter said US Airways' on-time performance declined due to an 'operational meltdown' at its Philadelphia hub over the Christmas holidays that caused flight cancellations. The airline has revamped its schedule and hired more workers in Philadelphia.