AIRBORNE EXPRESS SETS ZONE-BASED PRICING, PLANS RATE HIKES
Airborne Inc., the holding company for Airborne Express, said Monday it is implementing a new rate structure, which will include rate increases averaging 5.5 percent.
The rate increase, effective March 5, will apply to customers whose rates are not already set by contracts. The increase will be phased in to include all accounts as existing contracts are renewed. A separate rate increase will be applied to airborne@home customers.
On Jan. 15, Airborne Express joined other national carriers by implementing a zone-based rate structure on its core air express services. the zone-based structure, which bases price on the distance a package is shipped, will be rolled out gradually to all of Airborne's customers.
The company also on Jan. 15 implemented a $3 pickup fee for on-demand, for non-scheduled pickups. the fee does not affect customers that have pickups of more than five shipments, use a drop box, have a regular pickup service, use prepaid Flight-Ready product or ship internationally.
“These measures should stimulate our yield management efforts, while providing our customers great flexibility,” said Carl Donaway, president and chief operating officer of Seattle-based Airborne.