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Thu, Jun 11, 2009

FedEx Express Opposes UPS Bailout

Says Ground-Based Service Wants To Limit Competition

United Parcel Service – the 100-year-old company parcel-delivery company, is seeking a Congressional bailout that critics say is designed to limit competition for overnight deliveries. According to the website "BrownBailout.com”, and a campaign launched recently by overnight delivery competitor, FedEx Express, that would leaving Americans with less reliable next-day delivery network for critical goods like medicines and essential inventory, according to 

The focus of the campaign is the 230-word bailout for UPS written into the voluminous FAA Reauthorization Act of 2009 currently before Congress that would force FedEx Express, UPS’ primary competitor for next-day deliveries, to operate under a law not designed for airlines and express companies.

“In 1997 UPS experienced a system-wide strike that crippled business and commerce across America. Now it wants Congress to expose FedEx Express to that risk,” said Maury Lane, FedEx Express spokesperson. “America relies too much on the reliability and dependability of the FedEx Express overnight-delivery network, and we can’t allow this bailout to pass only because UPS wants to harm its main competitor.”

"BrownBailout.com" says UPS and FedEx Express are fundamentally different companies. UPS, which has made substantial donations to many congressional campaigns, is a trucking company, shipping 85 percent of its parcels on the ground. FedEx Express is an airline, flying 85 percent of its packages in the air.

“The operations of an overnight airline and that of a traditional trucking company are radically different. You can’t shoehorn an airline into trucking company’s rules and still expect critical packages to arrive within hours on the other side of the country,” Lane said.

“UPS is making a problem where one doesn’t exist. This is a bailout, plain and simple, and the American people won’t stand for it.”

FMI: www.BrownBailout.com, www.ups.com

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