FedEx, USPS Near Deal on Alliance
FedEx would use its planes to haul Priority Mail and Express packages for the postal service, the story said.
However, USPS would not deliver slower-moving ground parcels for FedEx in rural areas that are not currently served by the Memphis-based company’s ground network, the Journal said.
Emery Worldwide Airlines – a unit of CNF Inc. (CNF) that cancelled an agreement late last year to handle Priority Mail shipments for USPS – is trying to stop the deal.
Emery said the deal would result in termination of the Express Mail contract 13 months before it was set to expire.
Sources said the postal service’s governing board was set to consider the alliance Monday, the Journal reported.
The proposed deal is likely to raise antitrust concerns, but the incoming Bush administration may handle them differently than the Clinton administration would have.