Tag: North America

USPS Seeks $6.1 Billion Postage Rate Increase

September 25, 2001 — Melissa Campanelli, dmnews: “The U.S. Postal Service Board of Governors yesterday filed its next rate case with the Postal Rate Commission, seeking a $6.1 billion increase in postage rates across the board. This proposed increase is in addition to the $3 billion in increases the postal service has implemented since January. The request is for an overall rate increase of 8.7 percent. For Standard Mail, overall rates would rise 7.3 percent. Regular Standard Mail rates would rise an average of 8 percent, and nonprofit rates an average of 6.7 percent. Commercial enhanced carrier route rates would rise an average of 6.2 percent, and nonprofit enhanced carrier route rates would increase an average of 6.5 percent. On average, within each subclass, flats — or catalog-shaped mail — would increase more than letters.”

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DMA: USPS Rate Hike Will Damage Economy

The DMA Says Proposed $6.1 Billion Rate Hike Will Further Damage the Economy;
Congress Must Enact Sweeping Reform to Allow the USPS to Survive

NEW YORK, Sept. 24 /PRNewswire/ — The Direct Marketing Association (The
DMA) has voiced grave concerns over the timing and size of the postal rate
increase request that was filed today with the independent Postal Rate
Commission (PRC). The United States Postal Service (USPS) Board of Governors
(BOG) filed a rate case today with the PRC, seeking a $6.1 billion hike in
postage rates across the board. This proposed increase is in addition to the
$3 billion in hikes that the Postal Service has implemented since January
2001.

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Emery Worldwide Airlines Fined $1m

Five weeks after government regulators forced Emery Worldwide Airlines, a unit of CNF Inc (NYSE:CNF), to suspend operations of its own fleet for what they described as egregious maintenance deficiencies, the Federal Aviation Administration has settled for a $1 million civil fine, the Wall Street Journal reported in its online edition on Monday.”

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Dow Jones: Emery Volume Decline Deepens

CNF Inc. (CNF) stunned investors Wednesday when it warned that it would lose between 15 cents and 20 cents a share in the third quarter because of continuing declines in air cargo volumes and the costs of grounding its cargo airline and shifting to leased aircraft. Wall Street analysts had expected the carrier to earn 22 cents a share, according to analysts surveyed by Thomson Financial/First Call, even after CNF’s Aug. 13 decision to ground its Emery Worldwide Airlines. The net cost of grounding the airline will total $16 million in the quarter, the company disclosed, well above the $10 million many analysts and fund managers expected. News of the pending loss sent shares of the Palo Alto, Calif., company down nearly $2, or 7.1%, to close Wednesday at $25.66 a share. Volume exceeded 864,000 shares, compared with average daily volume of 348,200. CNF also said it would sustain unspecified losses because of the temporary grounding of air freight service in the wake of last week’s terrorist attacks in New York and Washington, D.C. Besides the high cost of switching to a leased fleet of aircraft, it appears the decline in freight volume at its Emery Worldwide unit is deepening, not leveling out as many expected.

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