Absent Element

WASHINGTON – The Postal Service reported a loss of $3.8 billion last year, despite a reduction of 40,000 full-time positions and other cost-cutting measures.
The loss was $1 billion more than the year before despite job cuts and other efforts designed to save billions of dollars, postal officials said Monday.
"Our 2009 fiscal year proved to be one of the most challenging in the history of the Postal Service," Chief Financial Officer Joseph Corbett said.
"The deep economic recession, and to a lesser extent the ongoing migration of mail to electronic alternatives, significantly affected all mail products, creating a large imbalance between revenues and costs," he said.
The post office has been struggling to cope with a decline in mail volume caused by the shift to the Internet as well as the recession that resulted in a drop in advertising and other mail. Total mail volume was 177.1 billion pieces, compared to 202.7 billion pieces in 2008, a decline of almost 13 percent.
For the fiscal year that ended Sept. 30 the agency had income of $68.1 billion, $6.8 billion less than in 2008. Expenditures were down $5.9 billion to $71.8 billion.
Postmaster General John Potter is seeking permission from Congress to reduce mail delivery from six days a week to five, a move that could save the agency $3.5 billion annually.
Potter has said the post office does not plan to raise rates next year on the items most commonly used by the public such as first-class mail.
"We realize our customers are facing the same economic challenges," said Potter.
In addition the agency is consolidating mail facilities, looking to close some offices and looking for new sources of income.
The post office is required to make an annual contribution of about $5 billion to pay in advance for medical benefits for future retirees. Congress reduced that by $4 billion for 2009, but that change was for one year only.
The agency's independent auditor, Ernst & Young, questioned whether the post office would have enough money to make the next payment on Sept. 30, 2010, when $5.5 billion will be due.
For the current fiscal year, the post office estimated it will have a further decline in income of $2.2 billion and a net loss of $7.8 billion even with expected cost reductions of more than $3.5 billion. It expects a reduction in mail volume of another 11 billion pieces.
While there are signs of economic recovery, Corbett said the post office tends to lag two quarters behind the economy. In addition, he said, economists say the recovery is likely to be slow to add jobs and mail volume generally rises when more people are working.
___
On the Net:
U.S. Postal Service: http://www.usps.com

BEIJING (Reuters) –
Police have broken up a network of workshops and warehouses used to illegally smuggle 140 tons of used, foreign clothing through southern China, the official Xinhua news agency reported on Sunday.

Authorities detained 11 people involved in the smuggling ring in Lufeng City, a southern coastal area in Guangdong province, and raided more than 500 workshops and warehouses, according to the report.

The smugglers brought in used clothes, particularly from Japan and South Korea, to be reprocessed and sold to many inland Chinese areas, including the northeastern region and Xinjiang Uygur Autonomous Region, authorities said.

It did not make clear when the raids took place but said they were part of an ongoing crackdown that began in early October.

Another raid in the area early this month turned up 120 tons of smuggled, used clothing that was confiscated and burned, Xinhua reported.

(Reporting by Ken Wills; Editing by Sugita Katyal)

BARCELONA (Reuters) –
A company behind plans to open the first hotel in space says it is on target to accept its first paying guests in 2012 despite critics questioning the investment and time frame for the multi-billion dollar project.

The Barcelona-based architects of The Galactic Suite Space Resort say it will cost 3 million euro ($4.4 million) for a three-night stay at the hotel, with this price including an eight-week training course on a tropical island.

During their stay, guests would see the sun rise 15 times a day and travel around the world every 80 minutes. They would wear velcro suits so they can crawl around their pod rooms by sticking themselves to the walls like Spiderman.

Galactic Suite Ltd's CEO Xavier Claramunt, a former aerospace engineer, said the project will put his company (http://www.galacticsuite.com) at the forefront of an infant industry with a huge future ahead of it, and forecast space travel will become common in the future.

"It's very normal to think that your children, possibly within 15 years, could spend a weekend in space," he told Reuters Television.

A nascent space tourism industry is beginning to take shape with construction underway in New Mexico of Spaceport America, the world's first facility built specifically for space-bound commercial customers and fee-paying passengers.

British tycoon Richard Branson's space tours firm, Virgin Galactic, will use the facility to propel tourists into suborbital space at a cost of $200,000 a ride.

Galactic Suite Ltd, set up in 2007, hopes to start its project with a single pod in orbit 450 km (280 miles) above the earth, traveling at 30,000 km per hour, with the capacity to hold four guests and two astronaut-pilots.

It will take a day and a half to reach the pod - which Claramunt compared to a mountain retreat, with no staff to greet the traveler.

"When the passengers arrive in the rocket, they will join it for 3 days, rocket and capsule. With this we create in the tourist a confidence that he hasn't been abandoned. After 3 days the passenger returns to the transport rocket and returns to earth," he said.

More than 200 people have expressed an interest in traveling to the space hotel and at least 43 people have already reserved.

The numbers are similar for Virgin Galactic with 300 people already paid or signed up for the trip but unlike Branson, Galactic Suite say they will use Russian rockets to transport their guests into space from a spaceport to be built on an island in the Caribbean.

But critics have questioned the project, saying the time frame is unreasonable and also where the money is coming from to finance the project.

Claramunt said an anonymous billionaire space enthusiast has granted $3 billion to finance the project.

(Writing by Stuart McDill; Editing by Belinda Goldsmith and Miral Fahmy)