UK Royal Mail announces new network for moving mail by air

Royal Mail today announced plans to reshape its air distribution network in the latest stage of the complete restructuring of the way mail is moved around the UK.

Royal Mail currently uses 39 flights each week night, from 24 airports, to distribute 6.6 per cent of the daily mailbag of 82 million items across the country.

Now, to further improve efficiency and reduce costs, Royal Mail has decided to simplify its network. It will use larger jet aircraft to transport more mail – but using under half the number of services each week night, and operating from just 18 airports.

The current network is operated by eight airlines but all services under the new model, which will distribute eight per cent of all mail, are intended to be run by an alliance between Channel Express and Titan Airways, encompassing BenAir for Highland and Islands routes. This is subject to successful completion of negotiations.

Paul Bateson, Royal Mail’s Managing Director, Logistics, said: “This new network will improve the efficiency of our air operation, distributing more mail than we currently do by air at a comparable cost to our present system.

“The new network will provide greater efficiency and quality of service by using fewer, larger, containerised jet aircraft which reduces the need for handling operations at airports. The use of jet aircraft will also deliver benefits as they are better able to cope with adverse weather conditions, compared with the less modern turboprop aircraft currently used.”

Mr Bateson added: “Air operators were invited to tender for services and we chose the Channel Express and Titan Airways alliance as the preferred supplier. We are now looking to finalise contractual arrangements with them.”

The future Royal Mail’s air distribution operation will handle around eight per cent of the daily mail bag instead of the current 6.6 per cent – at a lower cost per kilo. It will be implemented over a 12 month phased programme beginning next month.

Royal Mail will continue its air operations from Aberdeen, Belfast, Benbecula, Bournemouth, Bristol, East Midlands, Edinburgh, Exeter, Glasgow, Guernsey, Inverness, Kinloss, Isle of Man, Jersey, Kirkwall, Newcastle, Stansted, Stornoway and Sumburgh airports.

Its air links to Cardiff, Heathrow (inland only), and Gatwick (inland only) will end. The future of one Norwich flight is still being reviewed. Royal Mail has also proposed the closure of its operations at Speke, but the Communication Workers Union have asked to put forward alternative proposals which could mean the retention of this site. Royal Mail has agreed to consider their proposals before any final decision is made.

A maximum of 50 jobs are likely to be affected and these are part of the overall reduction of 30,000 announced last year.

Rail Developments

Earlier this year, Royal Mail announced that, following the breakdown of protracted negotiations on price with its rail operator, EWS, it would be pursuing an air-and-road only option for its new network, due to be operational next spring. However, Royal Mail said at the time that the decision was driven by economic considerations, not policy, and that use of rail had not been ruled out for the future if any new proposals were commercially beneficial in terms of quality of service and price. Since that announcement, a number of companies have come forward who believe that they can offer a commercially viable rail solution, and discussions continue.

Ends

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Notes to Editors:

· Royal Mail announced last year its plans to totally restructure its UK-wide distribution network to create one which is more efficient, flexible and cost effective
· The restructure, which will save the business £90 million annually, is a key element of Royal Mail’s renewal plan to reduce annual costs by £1.4 billion to invest in improving services
· Earlier this year, Royal Mail announced it was pressing ahead with an integrated air and road distribution network, excluding a rail operation because the price tabled by its rail freight supplier EWS was too high
· A return to rail has not been ruled out for the future, if it can be proved to be a commercially-viable alternative to some road services
· By using fewer, larger vehicles and aircraft, the new integrated road and air network will reduce the impact on the environment of Royal Mail’s distribution operation by 30 per cent

www.royalmail.com