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"This proposal will have a significant negative impact financially, and to long-term relationships between Fairbanks and Barrow and the surrounding villages," said Jim Whittaker, mayor of the Fairbanks North Star Borough.
A meeting scheduled for Sept. 22 in Fairbanks is sure to be a showdown between the North and the South as Barrow and Fairbanks join with mainline bypass mail air carriers in a show of unity against the postal service's cost-cutting measures.
Earlier this summer the postal service said it could save $2.1 million in the bypass mail system. The change would send trucks up the Dalton Highway with 10 million pounds of bypass mail yearly.
"Fairbanks has long been a point of professional and legal services for Barrow residents," said Brenda Hewitt, marketing consultant for the Fairbanks Borough. "If the postal service implements this proposal not only will it cut flights into Barrow, it will slash 37 cargo and passenger flights weekly from the Fairbanks International Airport. How will lawyers, doctors and other professionals access Barrow?"
Hewitt figures that between $240,000 to 250,000 yearly in landing fees will be lost at Fairbanks International Airport if the proposal is implemented
Fairbanks' business leaders want the postal service to explain in detail its plan at the meeting to be held at the Wedgewood Resort on Sept. 22 from 3 p.m. to 5 p.m.
Postal service regional bypass mail director Dave Lendlief indicated that if the postal service implemented its plan that it would have to be approved by its Washington, D.C., headquarters, and that there would be meetings to get public input before any changes would go into effect.
In July, Sen. Ted Stevens indicated during a press conference that the postal service was going ahead with the proposal because it were mandated by Congress to cut costs.
When Stevens was informed that Alaska Airlines officials indicated that this may force them to reduce flights in to Barrow, he quipped, "This sounds like Alaska is positioning themselves for an Essential Air Service contract for Barrow."
Alaska Airlines denies that, and is waiting for word from the postal service about the plan.
"We are studying the situation, and how to lessen the impact to Barrow residents, should this proposal go into effect," said Alaska Airlines spokesperson Amanda Tobin. "We are waiting for some word from postal officials."
Officials from mainline air carriers Alaska Airlines, Everts Air Cargo and Northern Air Cargo said they do not believe the proposed plan will save the government money.
"We realize that the postal service needs to reduce costs, but this is idiotic," said William Fowler, chief operations officer of Northern Air Cargo. "At NAC this will mean an immediate reduction of 12 jobs. And we will have to fly aircraft empty to Deadhorse or station an aircraft there, either option is going to cost us money."
Approximately 10 million pounds of bypass mail are flown from Fairbanks to Barrow each year. Currently under the bypass mail system, those pounds are divided equally between three mainline carriers.
Once in Prudhoe Bay the mail would be warehoused and then loaded on to aircraft and flown to Barrow. Currently there are no carriers that fly from Deadhorse to Barrow. And there are no facilities to store bypass mail, or any postal service personnel available or on contract to organize or facilitate mail at the Prudhoe Bay facility.
"The mainline carriers understand the need for the USPS to save money," NAC's Fowler said. "However, the savings will be temporary (approximately one year), but the degradation in service will be immediate and be substantially detrimental to Barrow, Fairbanks, the communities served through Barrow, and the airlines - not only for the first year but all of the future years."
Lynden Transport is the current contract carrier for ground services for mail to Prudhoe and Nuiqsut, according to postal service official Lendlief.
Neither Lynden Transport officials nor media spokespersons were available to comment on the proposal, or about the company's contract with the postal service.
While Barrow residents, the local grocery store Alaska Commercial Co., and the North Borough School District have complained at a recent town meeting in Barrow that altering the bypass mail system would reduce freight, mail and passenger flights, postal service officials maintain that this is just a proposal.
Sen. Stevens, however, is more resolute about the proposal.
"They need to cut costs, and they have identified this route as one that they can modify to reduce costs," Stevens said at a July press conference. "This is part of their plan and I believe that they are going through with it."
In the meantime, Fairbanks businesses are tallying the negative economic impact to their community.
"We are analyzing the affects and economics to make a presentation to the postal service to have a positive effect that is reflected in the final decision," Mayor Whittaker said.
Rob Stapleton can be reached at rob.stapleton@alaskajournal.com.
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