Postal Service, FedEx announce alliance

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The U.S. Postal Service announced an unusual alliance with Federal Express that will have Federal Express planes carrying Priority Mail, post offices having Federal Express boxes, but the two services still competing and possibly running comparison advertising. The trick to the alliance, the two said, was that Federal Express will mostly use empty planes that the previous night transported overnight FedEx express packages to transport second day Priority Mail packages. Both Postal and Federal Express said that some overnight Priority Mail will be transported on Federal Express planes but they suggested the two services are largely noncompetitive. Federal Express officials said they don't extensively compete in carrying the smaller packages handled by the Postal Service even for such mailers as, while the Postal Service doesn't extensively handle the heavier overnight packages handled by Federal Express.

Copyright January 2001, Crain Communications Inc.

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