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FedEx Express: National Survey Shows Americans Oppose 'Brown Bailout' for UPS

Last update: 6/18/2009 9:53:00 AM

Eight in 10 Americans Oppose More Government Bailouts and Seven in 10 Say Brown Bailout Is Unfair

MEMPHIS, Tenn., Jun 18, 2009 (BUSINESS WIRE) -- Americans overwhelmingly oppose the proposed government "brown bailout" for United Parcel Service that would give UPS an industry edge for overnight deliveries, according to a new national poll conducted June 2-3 by Public Opinion Strategies for "BrownBailout.com."

Nearly seven out of 10 Americans polled oppose the government intervention and 80 percent say the federal government should stop bailing out companies and let the market determine who succeeds.

"BrownBailout.com" was launched by FedEx Express, the creator of the overnight delivery, to educate the public about the bailout language buried within the FAA Reauthorization Act of 2009 currently before Congress. As written, it calls for FedEx Express to be removed from coverage under the Railway Labor Act, the law under which FedEx Express was founded in the 1970's and has always operated under. By removing FedEx Express from RLA, Congress would expose FedEx operations to service interruptions that could impact the shipment of critical goods like medicines and essential inventory.

UPS is lobbying for this change because it believes the RLA gives FedEx Express a "competitive advantage."

Without RLA controls however the government would in effect give UPS unfair advantage by potentially putting in jeopardy the reliability of the FedEx integrated delivery network.

Americans have come to depend on the FedEx Express next-day delivery network to supply all its most essential needs. The national telephone survey was conducted by Public Opinion Strategies of 800 registered voters, and has a margin of error of the poll is +/- 3.46%.

Highlights of the survey include:

-- 75 percent say the reliability of overnight package delivery - knowing that a package will be delivered, when promised - is extremely or very important.

-- 61 percent say overnight package delivery is extremely or very important to the U.S. economy.

-- 81 percent of those polled believe FedEx and UPS have been operating successfully for decades, and since consumers have choices, competitive prices and service options, there is no need to change the laws.

-- 58 percent of those polled say they would be extremely or very concerned if Congress considered legislation that could make the overnight delivery system less reliable in the United States.

-- 70 percent say it is unfair for Congress to impose trucking regulations on FedEx's shipping business because four out of five packages delivered by FedEx travel by air. UPS began as a trucking company and delivers four out of five packages by truck.

-- 67 percent of those polled oppose this proposed action by Congress to impose trucking regulations on FedEx Express.

For more information on UPS' "Brown Bailout", visit . SOURCE: FedEx's BrownBailout.com BrownBailout.com 1-866-978-6886 [e-mail]