U.S. Postal Service Loses Millions Sending Mail To Alaska

Geo Beats
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33 years ago, the late senator of Alaska Ted Stevens sponsored the Alaska Bypass legislation that created universal mail service for rural settlements and villages in Alaska. Now the United States Postal Service is reportedly losing millions of dollars a year providing the deliveries that also require the Transportation Department to guarantee a 15 point 5 percent profit margin for airline carriers.

33 years ago, the late senator of Alaska Ted Stevens sponsored the Alaska Bypass legislation that created universal mail service for rural settlements and villages in Alaska.

Now the United States Postal Service is reportedly losing tens of millions of dollars a year providing the deliveries as they are contracted to use specific air carriers only that require the Department of Transportation to guarantee them a 15 point 5 percent profit margin.

Postmaster General Patrick Donahoe is quoted as saying: “Until the law gets changed, I have to abide by it. If you talk to people in Alaska, they're very satisfied with this service.”

The Alaska Bypass appears to be a double edged sword. Residents who rely on the deliveries are happy to have the service, even though they end up paying a marked up price for the goods, as it provides revenue for the grocery stores, airlines, and shipping industries that depend on it to make a profit.

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