The week that was: 16 November 2012
Rounding up the biggest stories of the week from the pages of Post&Parcel, with TNT Express revealing the buyer for its airlines, UK parcel carriers heading into peak season, and USPS recording a $16bn loss…
ASL Aviation Group to buy TNT Express airlines
TNT Express revealed that ASL Aviation Group is now in place to buy its airlines if its merger with UPS goes ahead.
The company has been looking for a European buyer for its airline business so that it can continue to enjoy full access to intra-EU air routes, which would not be allowed if it is owned by a non-European company like UPS.
TNT said it has agreed for ASL Aviation to buy 100% of the equity in TNT Airways and its Pan Air Lineas Areas unit – conditional on the TNT-UPS merger going ahead. ASL Aviation owns airline companies including Safair and European Postair.
USPS makes $16bn loss for 2012, seeking quick reforms
The US Postal Service said it is “critical” that Congress passes key postal reforms before the end of next month, as it recorded a $15.9bn loss for the 2012 year.
The loss included a $11.1bn payment owed to the federal government that USPS actually refused to make in August and September, related to retiree healthcare liabilities.
With mail volumes down from 168.3bn to 159.9bn year-on-year, USPS saw revenues slipping by less than a point to $65.2bn for the year ended 30th September, which did not cover the $81bn cost of running the network, including the defaulted payment.
UK parcel carriers head into challenging peak season
UK parcel carriers are heading into what could be the biggest festive season ever, with Hermes UK predicting a 25% growth in its volumes compared to last year’s peak.
Rivals City Link warned that new market capacity announced recently is not enough to match growth in ecommerce, and more price increases should be expected.
City Link revealed it is looking to branch out more into the postal business and delivery of packets next year, as it looks to move into profitability. The company’s parent, Rentokil Initial, played down talk of selling loss-making City Link, but admitted an attractive offer would be considered.
Post Office Ltd wins “vital” contract
Post Office Ltd won a GBP 450m contract to continue providing “front office” counter services for the UK’s vehicle licensing agency through post offices across the country.
The Drivers and Vehicles Licensing Agency awarded a seven-year deal to the post office network, to begin once the existing deal runs out at the end of March 2013. Under the contract, post offices will continue to provide services like road tax payment, car registrations and driver’s licence applications.
Running until March 2020, the deal has an option of a three-year extension. For the Post Office Ltd, the contract also forms a possible gateway to winning additional government work, as it is a framework contract, meaning Post Office Ltd has effectively been pre-qualified for other government services contracts.
Polish Post wins Poland’s biggest mail contract
Polish Post and partners including Itella Poland have signed the “biggest contract in the history of the postal services market” in Poland – handling the nation’s parking tickets and speeding fines.
The company is part of a consortium that has won an eight-year, PLN 353.2m (EUR 88.3m) contract to provide mailing services for Poland’s Main Inspectorate of Road Transport (GITD), the road traffic enforcement agency attached to the State Treasury.
Polish Post – Poczta Polska – said the contract won through a full tender process is the biggest single mail contract ever in Poland by value, and will involve the printing, finishing, manual and digital archiving and delivery of correspondence on behalf of the government’s road transport regulator.
