Have you ever wondered how the United States Postal Service (USPS) delivers your mail and packages across the country in a timely manner? You might think that the USPS has its own fleet of planes to transport your letters and parcels by air, but you would be wrong. In fact, the USPS does not operate any aircraft, but contracts with private companies like FedEx and UPS to fly your mail for them.
Embed from Getty ImagesThis might sound surprising, considering that the USPS has a rich history of airmail, dating back to 1911, when the first US mail flights were authorized. Many US airlines began their existence carrying mail across the States in the 1920s, when commercial operations started after the Contract Air Mail Act of 1925 handed over mail service to private contractors.
However, there is a very good reason for the USPS to avoid operating its own aircraft. First and foremost, it comes down to economics. Buying an aircraft, filling it with fuel, hiring pilots, and getting a ground game set up at airports is an expensive business, and mail is not a highly profitable sector.
“There is a very good reason for the USPS to avoid operating its own aircraft. First and foremost, it comes down to economics. Buying an aircraft, filling it with fuel, hiring pilots, and getting a ground game set up at airports is an expensive business, and mail is not a highly profitable sector.” (Simple Flying)
The USPS is an independent agency of the federal government that receives no tax dollars for its operations, but relies on the sale of postage and its products and services for funding. It has 34,000 retail locations and a yearly operating revenue of around $77 billion (2021). Moreover, it delivers about 48% of the world’s mail and reaches every address in the nation, including 160 million residences, businesses, and Post Office Boxes (PO Boxes).
The USPS operating its own aircraft would also mean that the mail system becomes more inefficient, as the USPS would have to optimize its route network for airmail to run through major distribution hubs. This would lead to delays in shipping and higher costs for customers.
“The USPS operating its own aircraft would also mean that the mail system becomes more inefficient, as the USPS would have to optimize its route network for airmail to run through major distribution hubs.” (Simple Flying)
Instead, the USPS has everything set up with this outsourcing contract system – and it seems to work pretty well for them. And while we may all be glad for the speedy delivery of our mail and packages across the country, letters and smaller items are not exactly the ideal cargo to fly on an aircraft.
“The USPS has everything set up with this outsourcing contract system – and it seems to work pretty well for them. And while we may all be glad for the speedy delivery of our mail and packages across the country, letters and smaller items are not exactly the ideal cargo to fly on an aircraft.” (Simple Flying)
The USPS contracts with private companies like FedEx and UPS to transport mail and packages by air. These companies have large fleets of planes that can carry more cargo and fly more efficiently than the USPS could. The USPS also pays them for air transportation, while they pay the USPS to deliver millions of their ground packages.
“We compete and collaborate. The Postal Service both competes and collaborates with the private sector. UPS and FedEx pay the Postal Service to deliver millions of their ground packages, and the Postal Service pays UPS and FedEx for air transportation.” (U.S. Postal Service)
This way, both parties benefit from each other’s strengths and expertise, and customers get their mail faster and cheaper. The next time you send or receive a letter or a package by air, remember that it might have flown on a FedEx or UPS plane before reaching your mailbox.
Relevant articles:
– Why Doesn’t The USPS Have Its Own Aircraft?, Simple Flying, November 2, 2022
– Why Doesn’t The USPS Have Its Own Aircraft?, Postal Times, November 8, 2022
– Top facts you should know | Postal Facts, U.S. Postal Service, March 28, 2023