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Bailout with UPS

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  • Provider: YouTube Link: http://www.youtube.com/watch?v=yqqTKQhBsSs
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  • Description: Why does a company that brings in so much money need a bailout from Congress?



    UPS lobbyists have buried a short 230-word legislative bailout deep inside the FAA Reauthorization Act of 2009 currently before Congress. It's worth billions to "Big Brown" at the expense of today's American economy that thrives on next-day commerce, competitive shipping options and ready access to markets around the world.

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    What's in a bailout?
    The bailout bottom-line is this: What's the difference between a 100-year-old trucking company and a modern airline that flies packages around the world every night? Answer: everything. Yes, both carry parcels and packages, but how they do it is obviously and vastly different.

    UPS' bailout would shoehorn FedEx Express -- an airline created in 1971 focused on next-day delivery of essential goods and documents around the world -- into the same operating rules as a 100-year-old trucking company. FedEx Express and other airlines operate just fine under airline regulations, but UPS doesn't like competition. Keep in mind, UPS chose to form as a separate trucking company for its pickup and delivery operations.

    So "Big Brown" is throwing around its political weight and seeking a bailout from Congress, so that it can saddle its only remaining U.S. competitor with the effects of its own decisions. And at the end of the day, all of us who rely on overnight-deliveries -- medicines, paychecks, critical replacement parts, essential inventory, and the like -- pay the cost.
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