FedEx Virtual Airline

Over $17 million wasted on FedEx planes
U.S. Postal Service facilities in California and three other Western states incurred $17.8 million (U.S.) in unnecessary costs by using FedEx Corp. aircraft to ship mail that could have been moved by truck, rail or passenger plane, auditors found.

The post offices, which account for 14 per cent of all U.S. mail volume, also paid FedEx to sort mail when they could have done so themselves or prepared the mail properly before giving it to FedEx.

Facilities in these states, including Arizona, Nevada and Hawaii, could save the Postal Service about $45 million over the next 10 years by minimizing use of FedEx planes and services, said the Feb. 19 report displayed this week on the agency's website.

The report's findings come as the Postal Service, a government agency required by law to set rates to cover costs, tries to cope with a possible $2 billion loss this year after a $5.1 billion deficit last year.