III. ALASKA AIR SUBSIDY
The USPS has two general parcel classifications; Priority Mail , which is entitled to air transportation and parcel post, which is entitled to surface transportation only. Because the bush country of Alaska has no roads, virtually all mail is transported to and from the bush by air. Although it is a ground service, parcel post is available to the Alaskan bush because of the use of air transportation.
It turns out that parcel post is the lowest priced way to transport goods to the bush because its rates don?t reflect the cost of air transportation. This has caused the Postal Service to become the principle means of transporting virtually all merchandise to the bush that is mailable (no more than 70 lbs. and 108 inches in length and girth). Much of the material never enters a post office before being transported. Local airlines maintain industrial size freezers, refrigerators and warehouses where groceries and other goods are brought and stored and then have postage applied before being placed directly on airplanes and flown to the bush as parcel post.
The Postal Rate Commission in its R90-1 decision found that the reason the Postal Service flies parcel post to the bush is because of its universal service obligation. UPS ground service, for example, is not available to the Alaskan bush. Air transportation of parcel post to the Alaskan bush cost the Service $99 million or two-tenth of one percent of total costs in FY 99. This is the upper bound amount that the Postal Service could save if it were to discontinue parcel post service to the Alaska bush. , It should be kept in mind that Priority Mail service would still be available to the bush as is UPS Blue Label (air) parcel service.
Linkage
People chose to live out in the bush. People choose to have modern amenities. USPS ratepayers get to pay for the freight charges. Sen Ted Stevens is in the middle of continuing this handout. Of course this isn't the "Bridge to Nowhere" of past fame.
Subsidy for 106 villages grocery and supplies postage is $99 million per year.
Maybe we 48 stater's could get a discount on oil?
The USPS has two general parcel classifications; Priority Mail , which is entitled to air transportation and parcel post, which is entitled to surface transportation only. Because the bush country of Alaska has no roads, virtually all mail is transported to and from the bush by air. Although it is a ground service, parcel post is available to the Alaskan bush because of the use of air transportation.
It turns out that parcel post is the lowest priced way to transport goods to the bush because its rates don?t reflect the cost of air transportation. This has caused the Postal Service to become the principle means of transporting virtually all merchandise to the bush that is mailable (no more than 70 lbs. and 108 inches in length and girth). Much of the material never enters a post office before being transported. Local airlines maintain industrial size freezers, refrigerators and warehouses where groceries and other goods are brought and stored and then have postage applied before being placed directly on airplanes and flown to the bush as parcel post.
The Postal Rate Commission in its R90-1 decision found that the reason the Postal Service flies parcel post to the bush is because of its universal service obligation. UPS ground service, for example, is not available to the Alaskan bush. Air transportation of parcel post to the Alaskan bush cost the Service $99 million or two-tenth of one percent of total costs in FY 99. This is the upper bound amount that the Postal Service could save if it were to discontinue parcel post service to the Alaska bush. , It should be kept in mind that Priority Mail service would still be available to the bush as is UPS Blue Label (air) parcel service.
Linkage
People chose to live out in the bush. People choose to have modern amenities. USPS ratepayers get to pay for the freight charges. Sen Ted Stevens is in the middle of continuing this handout. Of course this isn't the "Bridge to Nowhere" of past fame.
Subsidy for 106 villages grocery and supplies postage is $99 million per year.
Maybe we 48 stater's could get a discount on oil?