Summary

GAO reviewed the Postal Service's national transportation and distribution system to determine whether the Service could convert short-haul, high-cost mail from air to surface transportation. The objectives of this project were to: develop a methodology for the analysis and potential conversion of mail to more economical and timely transportation systems; and test the methodology's validity in a variety of markets and determine potential savings or service improvements.

Using the methodology GAO and the Postal Service developed jointly, GAO identified 54 routes throughout the Nation which are less than 500 miles apart where mail costs might be significantly reduced if the Service diverts the mail from surface to air transportation. GAO believes that the methodology being used will also provide postal regions with the tools needed to identify air routes for which conversion to surface transportation will result in increased service and reduced costs. In addition, GAO noted that the methodology can also be applied to other transportation and distribution activities, including: consolidating and reducing the number of highway contract and motor vehicle routes, and reducing the number and capacity of vehicles needed to move the mail.