Israel Post CEO warns of collapse
Israel Post Company Ltd. CEO Avi Hochman warns that the company faces collapse unless fundamental changes were made in the competitive structure of the postal market and unless the company’s operating license was amended. He said that there was a link between the paralysis of the Ministry of Communications officials who supervise the company and the losses that he predicts.
Hochman noted that the company’s license came into effect on January 1, and that it would loss NIS 18 million (USD 5.25 million) for the first quarter. He attributes the losses to large customers which are turning to competitors that offer lower prices, while Israel Post’s rates are government controlled. Furthermore, Israel Post’s rates are public knowledge.
Israel Post Company Ltd. CEO Avi Hochman warns that the company faces collapse unless fundamental changes were made in the competitive structure of the postal market and unless the company’s operating license was amended. He said that there was a link between the paralysis of the Ministry of Communications officials who supervise the company and the losses that he predicts.
Hochman noted that the company’s license came into effect on January 1, and that it would loss NIS 18 million (USD 5.25 million) for the first quarter. He attributes the losses to large customers which are turning to competitors that offer lower prices, while Israel Post’s rates are government controlled. Furthermore, Israel Post’s rates are public knowledge.
