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 the air carrier certificate. With 60 aircraft in IPX's fleet in 1987, it was becoming difficult to manage all the different carriers and aircraft under contract. UPS announced that it would take over all airline operations in 1988 and would use the IPX certificate as the basis for UPS airlines. UPS Airlines began operating on January 28, 1988. Ten months after receiving the FAA operating certificate, UPS Airlines was now operating 94 aircraft. UPS Airline was the fastest growing airline in FAA history. Financial Performance and Current Economic SituationUPS has always been a cost-conscious company. However, raising the capital needed to compete globally meant seeking additional revenue. In 1999, UPS held the largest IPO in U.S. stock history. United Parcel Service, once a private company, went public, generating five and a half billion in revenue. Additionally, investors have seen the stock rise 26 percent since the IPO. Route Structure and Airport Hub Strategies UPS has seven regional hubs in the United States with operations worldwide. UPS uses its own hub-and-spoke system to ship its goods around the world, but its primary hub is Louisville International Airport. The UPS air hub in Louisville is called Worldport. UPS chose Louisville for its hub for two reasons. First, because of its location, UPS can reach the majority of the US population in two or three...... middle of paper ...... in 185 countries, reaching more than four billion people. freight in the United StatesIn 2003 In an unprecedented move, UPS teamed up with rival FedEx to prevent DHL from entering the American package market. DHL had purchased Airborne Express in an attempt to enter the American market. UPS and FedEx believed that DHL would distort competition in the United States because DHL could subsidize its competitive activities with revenues from its postal monopoly in Germany. Unable to compete with the two American shipping giants, DHL announced in 2013 the closure of its North American operations. In May 2013, DHL began outsourcing some of its operations to UPS. In conclusion, what's next for shipping giant UPS? In just 25 years, UPS Airlines has become the second largest cargo airline in the world. Time will tell what’s next for the global shipping giant. "What can Brown do for you?”