Deutsche Post confirms domestic parcel delivery prices reduction
DHL, the express and logistics unit of Deutsche Post AG, announced that it had decided to reduce the prices for parcel delivery in Germany as of May 4, 2006, in order to achieve turnover and profit increases in long-term perspective, according to a media report from April 5, 2006.
According to the report, under the new price scheme the price for the delivery of an ordinary parcel will be reduced to 3.9 euro ($4.73) from currently 4.3 euro ($5.2). The price for the delivery of the so called Plus parcels, including packaging and postal charges, weighing up to 20 kg, will be reduced to 5.99 euro ($7.27) from currently 6.2 euro ($7.53).
A Deutsche Post spokesman said that the company is also examining the possibility to reduce the prices in other service sectors, but stressed that no final decision had been taken yet.
The head of Deutsche Post, Klaus Zumwinkel, has already announced possible price reductions for the heavy parcels.
The price reduction plans are seen as Deutsche Post’s response to the discount offers of competitors Hermes and GLS through which they managed to attract private customers of the company.
Deutsche Post (www.deutschepost.de) expects the move to increase its operating profit in Germany in 2006 by 27.7 pct to 313 mln euro ($380 mln).
www.handelsblatt.com
Source: Handelsblatt
