Postal Service abruptly ended negotiations with Alpine Air in Montana

The U.S. Postal Service abruptly stopped air service in Montana this week even after Alpine Air, its air cargo contractor in the state, offered a roughly $3 million reduction in its contract, according to the company CEO.

In a phone call Wednesday, Alpine Air CEO Michael Dancy said negotiations were underway as early as last week for the company that has worked with the Postal Service in Montana for some 35 years.

But the Postal Service didn’t respond to the discounted offer, he said. As a result, Alpine Air is looking at layoffs in Montana, according to Dancy. It employs 60 people in the state including 20 who have worked on the Postal Service contract.