Airline postal service to stay in u-turn
AER LINGUS has rescinded its decision not to carry An Post mail to Britain and Europe and is continuing to ferry the post six days a week for the cash-strapped postal company.
Last September, as part of further cost cutting moves, the airline announced that it would axe its postal and courier service to Britain and Europe from January 1 this year leaving An Post with no option but to look for another service provider.
Aer Lingus had earlier signalled that it would drop cargo services in Europe from the start of this year.
At the time An Post chief operating officer Larry Donald said the company would look at alternatives for its outbound mail service and warned there would be a cost issue for An Post which had operating losses of 30m in 2003.
“We’re going to have to find another operator that is going to be in a position to provide the kind of service we need. There is an issue of costs. One of the options we will have to look at would be to have a specific service – to hire the service on a charter basis,” Mr Donald said at the time.
However, the Irish Independent has learned that following discussions between An Post and Aer Lingus, the airline will continue operating the service.
A spokeswoman confirmed that they were providing the service to Britain, a number of European destinations as well as the US.
A spokesman for An Post said they entered into talks with the airline after Aer Lingus said they would be ending the service and had come to an arrangement that Aer Lingus would continue to transport the mail.
Of mail leaving the country, 60pc goes to Britain with 20pc going to Europe and the rest to destinations in the rest of the world.
However, while Aer Lingus is providing the service, under EU contract rules, An Post had to advertise the 3.4m a year contract in the official EU journal. An Post now hopes it will be able to enter into a formal arrangement with Aer Lingus.
Meanwhile, proposals to be put to the board of An Post would mean An Post could offer a range of financial services to customers.
According to reports yesterday, An Post management wants to offer banking and credit facilities, ATM services and financial products such as home and life insurance to customers.
Last week Donal Curtin the chief executive of An Post told the Dail Committee on communications that he wanted to “capitalise on the footfall in our offices and, in particular, develop a financial services portfolio capable of delivering profitable business”.
If the company were to adopt such a strategy going forward it would first need to get the approval of the Irish Financial Services Regulatory Authority (IFSRA), the country’s financial watchdog.
Kathy Donaghy
