Possible Austrian Opportunities for Deutsche Post

Deutsche Post may yet gain entry on to the Austrian market, as a press source has indicated that Osterreichische Post, the Austrian postal service operator, may be planning to co-operate with the German group’s logistics subsidiary DHL in parcel forwarding. Osterreichische Post head Anton Wais had favoured Deutsche Post as an investor, but had faced political opposition. At present, Osterreichische Post co-operates with DPD Austria in parcel forwarding, and an extensive agreement exists between the two companies, which, it is feared, could present difficulties if the national postal operator were to switch to DHL. A termination of the contract could lead to compensation demands, and it is thought that write-downs would be necessary.