Airborne Inc. Announces New Prices

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Airborne Inc., Seattle, has set a new pricing structure for its domestic shipment products, including an average rate increase of 5.5 percent, a shift to zone-based pricing and a nonscheduled pickup fee, the company said yesterday.

The rate increase will take effect March 5, with some variance keyed to shipping volume. The increase will be applied to customers whose rates are not already set by contract. 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.

In addition, Airborne implemented a zone-based rate structure for its core air express services effective Jan. 15. The new zone-based structure -- a pricing structure based on the distance a package is shipped -- will be rolled out gradually to all of Airborne's customers. Airborne said that this structure more accurately reflects the cost of providing service and that all major carriers now use zone-based pricing.

"We believe migrating to zone-based pricing will enhance our value proposition with customers," said Carl Donaway, president and chief operating officer. "In addition, our customers now will find it easier to compare rates and savings."

Also effective Jan. 15, Airborne implemented a $3 pickup fee for nonscheduled pickups. Customers that have pickups of more than five shipments, use a drop box, have a regular pickup schedule, use prepaid Flight-Ready product or ship internationally will avoid the charge. Shippers will receive a $1 discount for each shipment placed in a nearby drop box.

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