As FedEx, UPS slug it out in Washington, D.C., rural package deliveries could be at stake

As FedEx, UPS slug it out, rural service at stake

BILLINGS, Mont. — A Montana-based contractor for FedEx is warning that his business and customers in 10 states could suffer under a proposal before Congress to strip the shipping giant of its special status as an airline.

Corporate Air vice president Mike Overstreet says overnight delivery services could be lost in parts of Montana, Wyoming, Idaho and other states if FedEx is reclassified as a trucking company like its close rival, United Parcel Service.

UPS, which has allied with the Teamsters union to push for the change, dismisses such concerns as unfounded fear mongering meant to incite opposition in Congress. UPS says the reclassification of FedEx would create a level playing field between the two companies.