HistoryUPS began delivering packages by air as early as 1929 with United Airlines operating Ford Tri-motors. UPS's first airline venture began as a 50/50 partnership with DHL in a company called International Parcel Express (IPX). IPX hired a group of former Transamerica employees to obtain their air carrier certificate. With 60 aircraft in IPX's fleet in 1987, it was becoming difficult to manage all the different contract carriers and aircraft. UPS announced that it would take over all airline operations in 1988 and use the IPX certificate as the basis for UPS airlines. UPS Airlines began operations on January 28, 1988. Ten months after receiving its operating certificate from the FAA, UPS Airlines had grown to a 94-aircraft operation. UPS airline was the fastest growing airline in FAA history. Financial Performance and Current Economic Situation UPS has always been a cost-conscious company. However, raising the capital needed to compete on a global scale meant seeking additional revenue. In 1999, UPS held the largest initial public offering in U.S. stock history. The once private United Parcel Service went public creating five and a half billion dollars in revenue. Additionally, investors saw the stock rise 26% after the initial public offering. Route Structure and Airport Hub Strategies UPS has seven regional hubs in the United States with operations around the world. UPS uses its own hub-and-spoke system to ship its goods around the world, but its main hub is the Louisville International Airport. The UPS air hub in Louisville is called Worldport. UPS chose Louisville to have its own hub for two reasons. First, because of its location, UPS can reach most of the US population in two or three... halves of paper... in 185 countries, reaching over four billion people. US Cargo Operations In 2003 in an unprecedented move, UPS teamed up with rival FedEx to block DHL from entering the US package market. DHL had purchased Airborne Express in an attempt to enter the US market. UPS and FedEx identified that DHL would distort U.S. competition because DHL could subsidize its competitive activities with revenues obtained from its postal monopoly in Germany. Unable to compete with the two US shipping giants, DHL announced in 2013 that it would close its North American operations. In May 2013 DHL began outsourcing some of its operations to UPS. Bottom line, what's next for shipping giant UPS? In just 25 years, UPS has grown to become the second largest cargo airline in the world. Only time will tell what the future of the global shipping giant will be. “What Brown can do for you?”