Deutsche Post may face legal action from GLS

General Logistics Systems (GLS), the German parcel forwarding subsidiary of UK postal group Royal Mail, is threatening legal action against German postal operator Deutsche Post. GLS, formerly named German Parcel, is demanding access to the delivery service of Deutsche Post as part of a plan to expand into letter deliveries. It argues that the discounts allowed by the postal service operator to rivals for the consignment of pre-sorted letters are insufficient at a maximum of 20 per cent. GLS is planning to collect letters from customers, carry out sorting and transfer the mail to the distribution network of Deutsche Post, but this plan has been rejected by Deutsche Post so far.

For business year 2004/05, to March 31, GLS showed turnover up by around 8 per cent at 1.3bn euros. Ebit amounted to 90m euros, producing a pre-tax return on sales of 7 per cent. The company is aiming to invest 300m euros in the development of its European parcel distribution network in the coming five years.”