Shipping Crisis

Note: These are emails that have came in on this problem. If you do not belong to the Bird Shippers of America, please visit their web site.

February 18, 2005

Dear Bird Shipper Members:

To follow is a letter I received from our lobbyist, Steve Boynton, outlining

where we presently are concerning the most recent problems with shipping
birds
through the mail.

Although this is a difficult time, I think it is important to recognize that

the USPS wants to keep both American and US Air in the mail business and
that
we have help on the hill - Senator Grassley - who is willing to assist us.
The
biggest problem, as I see it, is time. As we all know, things do not just
happen
overnight with issues concerning government.

Many of you receiving this email are not presently members of this
organization.
I am sending you this email to make you cognizant of the fact that Bird
Shippers
of America is indeed an active group which feels strongly that an organized
group
of members is the best defense for combating the next industry crisis
whenever
it may arise.   I strongly urge to read this letter and determine whether or

not you feel the BSA is something you need to support. This will be the last

communication for non-paying members.

Sincerely,

Murray J. McMurray
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Murray:

    Subsequent to our conference call, I spoke to John Bonafilia at the U.S.

Postal Service (USPS) for a status of the current situation regarding Delta
Airlines,
U.S Air and American Airlines for the shipment of "lives" as air mail.

    As to Delta, regardless of the legal issue of whether or not Delta can
unilaterally
determine how it will alter its postal contract to deliver the air mail in
the
face of "our" amendment, it plans to start dismantling its hubs on March 5th

that are currently used for transfer of air mail and other cargo. [The issue

transfer cargo is not just for the shipment of "lives."]. The legal issue is

currently under review by the USPS but it seems to me that the USPS is
considering
it moot as Delta is determined it will not continue to do any transfers to
the
point of not carrying any mail. John will inform us as to the status of the
legal
options.

    As to U.S. Air and American, both carriers are desirous of continuing
postal
contracts and the meetings that have taken place have been "positive." The
problem
now is the time-table when they can achieve an acceptable "score" on
service.
This is not known at this time.

    "Other carriers" and FedEx and surface transportation are supposedly
taking
up the "slack" on Delta's (transfer) routes and American and U.S. Air
service.

    As to the question of whether United Airlines also does not "do"
transfers,
John indicated that he had never heard that this was the case but would
check
and be back to me.

    As to the possibility of the USPS again using its own air carriers, it
was
indicate that "it would never happen."

    I spoke to Mark Reisinger in Senator Grassley's office. Firstly, the
"good
news" is that the Senator would be willing to address the FedEx issue by way

of legislation. The "bad news" is that there is currently not a legislative
vehicle
to attach such an amendment to at this time. He does not believe a "stand
alone"
bill would, in any way, be successful in receiving the attention of the
Congress.
In the interim, and due to the basic emergency developing for the industry,
I
suggested a meeting to be brokered by the Senator with the USPS, FedEx and
ourselves
to discuss the problem and any proposed legislation. He said he would
prefer
a meeting with us and USPS first 1) to underscore the to the USPS the
serious
nature of the problem(s) to the industry and the statutory responsibility to

"resolve" the problem(s) and, 2) to indicate that "we" are serious about
legislative
relief to correct the problem(s). The Congress is going into a brief recess

due to President's Day on the 21st. He asked me to call him February 28th to

discuss such a meeting.

    It seems clear to me that we are back to having the Congress assist on
this
issue. Sadly, I am not confident that the USPS can, or will, solve it
without
Congressional pressure or mandated legislation.

    Best wishes.

    Steve

From: Stephen S.Boynton [mailto:boytop@erols.com]
Sent: Monday, February 14, 2005 5:58 AM
To: Murray McMurray

Subject: Delta, American & U.S. Air
Importance: High

Murray :

I received a telephone call from John Bonafalia this morning (at 6:40 a.m. EST!) to bring me up to date on the current problems with various carriers on shipping "lives" by USPS.

As to Delta, the decision not to carry mail was, they contend, strictly an economic factor concerning the cost of upgrading equipment that would cost some $15 million. At the request of USPS, Delta came to USPS with a certain conditions to continue to carry mail that was unappceptable to USPS. USPS has used FedEx and other carriers to replace Delta. [Delta still will take non-transfer mail].

As to American and U.S. Air, the decision to terminate the postal contracts was initiated by USPS because their service was unacceptable. Both airlines want to continue to have the contacts. Both carriers are due for negotiation meetings today and tomorrow.

When FedEx was mentioned in the discussions, I reminded John that the author of the legislation to mandate the taking of "lives" by postal service believed that FedEx was covered since it did, and does, carry live animals (with certain exceptions - dogs and cats). He asked me if we were still pursuing possible legislation to correct this situation. I told him we were still discussing it with folks on the Hill.

John is to call me tomorrow afternoon to give and update on the USPS/U.S Air/American negotiations to continue the mail contracts.

I have not heard back from Mark Reisinger but will inform him of the substance of this information.

Stephen S. Boynton
21036 Beallsville Road
Dickerson , Mary land 20842-9069