The U.S. Postal Service abruptly stopped air service in Montana this week even after Alpine Air, its air cargo contractor in the state, offered a roughly $3 million reduction in its contract, according to the company CEO.
In a phone call Wednesday, Alpine Air CEO Michael Dancy said negotiations were underway as early as last week for the company that has worked with the Postal Service in Montana for some 35 years.
But the Postal Service didn’t respond to the discounted offer, he said. As a result, Alpine Air is looking at layoffs in Montana, according to Dancy. It employs 60 people in the state including 20 who have worked on the Postal Service contract.
Additionally, Dancy said people who want two-day delivery will have to look to companies such as the United Parcel Service — where “two-day means two-day” — and not the Postal Service. Alpine also delivers for UPS.
“We care about the state of Montana and its inhabitants,” Dancy said. “That’s important to us. We’re a Montana company.”
The Alpine Air Express website said it’s a Montana corporation doing business through its subsidiary Alpine Aviation of Utah.
Last Wednesday, Alpine Air sent the Postal Service a proposal for a deeply reduced contract for service in Montana and South Dakota, Dancy said. He declined to provide the contract amount.
The Postal Service indicated it would respond Thursday, he said, but it never did: “I’ve been involved for 25 years, and I’ve never seen anything like this. Ever.”