Tag: Air Transport

The US Postal Service says it has suspended American Airlines’ contract to deliver domestic mail after the airline failed to meet performance measures – a decision that could cost the carrier millions. For consumers, mail delivery won’t be affected, postal officials say. But the decision could cost the airline tens of millions of dollars this year, at a time when Fort Worth-based American is already struggling with high fuel prices and intense competition that has driven down airfares. American executives, however, dispute the postal service’s assertion. They say the contract remains in force, although they acknowledge that the airline is in talks with the post office regarding future mail delivery. “We’re having a conversation about the nature of our relationship,” said Tim Wagner, an airline spokesman. “But our contractual relationship with the postal service has not changed.” Wagner also noted that American’s international mail delivery business remains unaffected.