Penobscot Island Air (MID, Rockland) has announced an immediate stop to its services delivering mail on behalf of the United States Postal Service (USPS) to the islands of Maine’s Penobscot Bay, as it says the government-run company owes it roughly USD388,000 for delivering mail as far back as 2023.
“While our mission is to support the islands, PIA employees need a paycheck. We can’t operate as a business if almost a fifth of our yearly revenue is tied up in the bureaucracy of the United States government,” the carrier said in a statement, adding that cash flow is bleak as the non-summer months remain a slow period.
In response, the postal service promised to pay about 25% of the balance to Penobscot Island Air in the coming days.
This prompted the airline to say in a separate statement: “Considering the pace at which USPS generally moves, our contract officer pulled off a small miracle to make it happen. We have a framework for going forward, and there’s enough clarity for us to work with. We’ll be back in the morning delivering mail.”