Southwest says it’s happy to be rid of USPS contract
An article in Aviation Daily says that Southwest Airlines’ freight revenues in the third quarter were down $30 million “partly because the airline will not renew its contract with the U.S. Postal Service”. But the airline apparently doesn’t feel that’s a bad thing- the article quotes Southwest CEO Gary Kelly as saying that the USPS is a “difficult customer”, that it “had a list of demands that would have impacted the integrity of our operation”. Servicing the USPS, according to Kelly, “would have resulted in a significant amount of investment for low yields”, so the company is seeking other commercial customers. Another factor cited by Kelly was the shift of postal business to FedEx, UPS, and ground transportation.
I’m sure Southwests baggage handlers will be dissapointed. No more free stuff.