The international credit rating agency Fitch said it was cutting its rating on the long-term debt of Deutsche Post in the light of the semi-privatised German postal authority’s acquisition of the US parcel delivery service Airborne.
Fitch said in a statement it was cutting Deutsche Post’s debt rating to “A+” from “AA-“, but the outlook was stable and Fitch was therefore removing the ratings from “Watch Negative.”
Read MoreRoyal Mail made a loss of £480 million on its monopoly business last year, heightening fears that the price of stamps could be forced up again and that the postal group is on course for a another clash with its regulator.
Details of the losses will be presented today to Postcomm, the regulator in control of pricing and in charge of the four-year programme to allow competitors into the postal market. Postal executives are expected to seize on the scale of the losses to demonstrate the danger of setting access charges too low. Postcomm is considering how much Royal Mail should be allowed to charge rivals to use its network. It has suggested a fee of 11.5p per letter, against the 28p cost of a 1st-class stamp and 19p for second 2nd-class mail.
Read MoreThe U.S. Department of Transportation issued a decision that had something for everyone in the controversial DHL Airways case, which pits the world’s express giants against each other. In a victory for Deutsche Post World Net, owner of DHL International, the DOT ordered the administrative law judge conducting the inquiry to focus solely on the current ownership of DHL Airways, now Astar Air Cargo.
But in a victory for FedEx and United Parcel Service, the DOT dismissed Astar’s motion to terminate the entire proceeding.
Read MorePall-Ex has become B&Qs first nominated freight carrier, after an initial trial. It will now also cover B&Qs national consolidation centre.
Read MorePallet-Track has appointed two new members/shareholders to its pallet network: Heckmondwike-based James Wilby and Bolton firm JO Transport.
Read MorePalletforce has launched a Nex Day service to Northern Ireland, which will be operated by member company Redhead International. Pallets will arrive in NI in the morning for onward distribution.
Read MoreMcKinsey and Co. has recommended to the Ministry of Communications to open Israel’s mail market to competition beginning in 2006 and finishing in 2010.
McKinsey predicts that the Israel Postal Authority will lose over NIS 500 million in revenue from opening the market to competition. McKinsey recommends opening the business mail market to competition on January 1, 2006, and gradually opening other sectors over a four-year period ending on January 1, 2010. A half-way station would be on January 1, 2008, and the private sector would be opened to competition on January 1, 2010.
With 45pc of letter post revenue open to competition by the end of the year, and An Post’s announcement of its biggest ever loss of 70.5m with a continuation of losses in the current year, incoming An Post chief executive Donal Curtin faces many challenges.
Turnover increased by 9.4pc to 683.7m but operating costs rose by 10.8pc to almost 700m in 2002. The 17.4m operating loss is augmented by a provision of 52.5m for a voluntary severance and early retirement programme.
Even though this restructuring plan is running 18 months behind schedule, the full provision has been made for 2002.
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