# Presentation: 043335

## USPS/FedExBUSINESS ALLIANCE OVERVIEW

**USPS/FedEx****BUSINESS ALLIANCE OVERVIEW**
**MAILERS TECHNICAL ADVISORY COMMITTEE MEETING**
**AUGUST 1, 2001**

**Network Operations Management**

## At present, air cargo capacity for Express Mail, Priority Mail, and First-Class Mail products is purchased on a contract basis from multiple carriers

**The current supplier base is fragmented and does not meet service and cost objectives**** **
**At present, ASYS on-time performance is poor and is expected to further deteriorate**
**The use of multiple carriers makes it difficult to develop a centralized information technology capability**

**Overview of Current Transportation System**

## Air Transportation Requirements

**A more reliable and cost effective air transportation solution will be required to maintain market share**** **
**The requirements of a service responsive air network are:****	****Expanded network reach****	****Advanced IT capabilities**
**   ****Stabilized air transportation cost****Consistent performance**
**Implementing one national air transportation network operated by an integrated carrier helps accomplish these goals**

## Agreement

**Seven years**
**Projected savings over $1.3 Billion**
**Guarantees 95% on-time performance**
**Network scope (National reach)**
**Night:  from 50 to 116 markets**
**Day:  from 26 to 84 markets**

**Highlights of the Agreement**

## Fleet size - Capacity

**770 total aircraft**
**388 jets**
**288 wide-body jets**

**Highlights of the Agreement**

## Minimum Guaranteed Volume

**Day-Turn -- 443,120 Cubic Feet**
**Night-Turn -- 250,000 Pounds**

**Highlights of the Agreement**

## Limited ramp up began June 25

**Day-turn Network only (Priority and First Class Mail) - 11 cities - closed loop**
**Expanded to 25 cities - closed loop - July 30**
**Expand to 27 cities - closed loop - Aug 6**
**Expand to 28 cities - closed loop - Aug 13**
**Full ramp up - Aug 27**

**Ramp Up Activities**

## Night-turn Network (Express Mail) - 11 cities - Jul 16

**31 cities - July 23**
**91 cities - July 30**
**Full ramp up - Aug 6**

**Ramp Up Activities**

## No HAZMAT or Live Animals (Air Industry Issue)

_**No ACT Tags - Every handling unit must have a D&R tag!**_
**Sack (MTE) Modification System-Wide (Priority/Express)**
**Commercial Air Opportunities**
**Expanded Surface Reach Via HASP/Hub Concept**

**Future of Postal Logistics**

## Growing A Surface Network

## Growing A Surface Network

## Growing A  Surface Network

## Growing A Surface Network

## Growing A Surface Network

## Growing A Surface Network

## Growing A Surface Network

## Growing A Surface Network

**550**

## Future HASP Sites

**015NH**

**070JH**

**100**

**104BX**

**150**

**170**

**190**

**207CH**

**230**

**233**

**240**

**270**

**275**

**280**

**290**

**296**

**310**

**320**

**331**

**350**

**360**

**365**

**370**

**373**

**377**

**380**

**390**

**400**

**450**

**460**

**488**

**550**

**60H**

**630**

**640**

**680**

**700**

**710**

**750**

**301AH**

- ATLANTA HASP

**328**

**335**

**550**

## Future HASP Sites

**015NH**

**070JH**

**100**

**104BX**

**150**

**170**

**190**

**207CH**

**230**

**233**

**240**

**270**

**275**

**280**

**290**

**296**

**310**

**320**

**331**

**350**

**360**

**365**

**370**

**373**

**377**

**380**

**390**

**400**

**450**

**460**

**488**

**550**

**60H**

**630**

**640**

**680**

**700**

**710**

**750**

**301AH**

- ATLANTA HASP

**328**

**335**

**280**

**296**

**275**

**287**

**283**

**015NH**

**104BX**

**070JH**

**137BH**

**150**

**170**

**189**

**180**

**197**

**207**

**201**

**208**

**210 212**

**217**

**211**

**220**

**229**

**230**

**233**

**240**

**250**

**245**

**301**

**303**

**310**

**360**

**320**

**350**

**390**

**370**

**380**

**710**

**400**

**403**

**430**

**440**

**450**

**460**

**480**

**493**

**481**

**500**

**530**

**550**

**553**

**60H**

**630**

**625**

**640**

**700**

**707**

**720**

**740**

**270**

**200**

**190**

**290**

**294**

**295**

**ATL**

**MCO**

**TPA**

**331**

**770**

**750**

- GREENSBORO HASP

**207CH**

**064**

**377**

**278**

**285**

**286**

**287**

**760**