Tag: Europe

Deutsche Post sees steady revenues after German mail monopoly ends in 2007

Deutsche Post AG board member Hans-Dieter Petram told Focus magazine he expects revenue at its mail division to remain steady after it loses its monopoly status in Germany at the end of 2007. ‘We earn 2.0 bln eur at our domestic and foreign operations annually, and that isn’t going to change when the monopoly expires; we are the best mail company in the world,’ Petram told the newspaper.
Earlier, Deutsche Post said revenues would decline 10-20 pct after the monopoly expires. However, Petram stressed that Deutsche Post prefers to err on the side of caution, calling that forecast ‘a worst-case scenario.’

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DHL challenge provides 'opportunities'

Kuehne+Nagel sees ‘upside’ for its contract logistics business in Britain following the USSD6.7bn takeover of Exel by acquisitive German rival DHL. Dirk Reich, K+N executive vice-president of contract logistics, said: ‘On the one hand we are worried, because DHL has unlimited funds. It can take profits out of a subsidised industry and invest them in consolidation [of the logistics industry]. And Germany’s railway, Deutsche Bahn is starting to do the same thing with Schenker.’ But Mr Reich observed that for some shippers the enlarged DHL had now become the sole supplier of contract logistics, a situation which would see shippers seek a second provider. Peter Ulber, K+N’s chief executive for northwest Europe based in Britain, agreed: ‘There are definitely opportunities as well as challenges. In British contract logistics, for example, DHL and Exel together have a combined market share of 25%. I would argue that such a position is not sustainable and that the numbers two and three, K+N and Wincanton, will get some of that business.’

‘Lots of customers are going out for an RFI [request for information] and they may split the business,’ he added.

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TNT to hire 100 additional pilots for European air network

TNT Express today announced that it will hire an additional 80 pilots during 2006, following the recruitment of an initial 20 in January, to fly new aircraft scheduled to enter service over the coming 16 months. The pilots will join TNT Airways’ existing Liège-based aircrew of 284 to operate the additional two BAe 146, two B747-400 ERF and five B737 SF aircraft that are set to join the company’s airfleet by May 2007.

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UK Royal Mail accepts price control

Royal Mail said yesterday it was “minded to accept” the final version of a four-year price control to 2010 that was proposed by its regulator this week. The state-owned postal operator said it would inform customers next week of price changes taking effect next month. The move represents a softening of the negotiating stance adopted by Royal Mail, which had earlier signalled it would reject the price control unless the government first agreed to its request for Pounds 2bn of state money. Negotiations with ministers over this funding are still continuing.

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