Tag: Europe

UK Royal Mail appeals against compensation ruling

Posted by | Jan 30, 2006 | |

Royal Mail is appealing against a High Court decision that it should pay up to GBP40m in compensation to business customers for missing service targets. Last Thursday, a day before the deadline to appeal, the postal operator decided to continue the legal battle pitting it and regulator Postcomm against postal customers’ representative Postwatch. Postwatch went to the courts last year after differing with Postcomm over the amount of compensation the two organisations believed was due from Royal Mail to its customers for missing its service targets in 2003-2004. The total compensation due was GBP80m, but Postcomm allowed Royal Mail to withhold around GBP40m from customers who had paid invoices late during the year. In December, High Court judge Justice Sullivan upheld Postwatch’s challenge. The judge left the amount that Royal Mail should pay to be decided by negotiation between the two sides. Postwatch’s senior director Andy Frewin said last Friday that customers were unhappy about the appeal because it would mean a further wait for compensation.

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DHL hub move to Leipzig underway

Posted by | Jan 30, 2006 | |

DHL has begun operating aircraft out of Leipzig in eastern Germany, two years before the airport becomes fully operational as its main European hub. Five aircraft have been switched from Berlin to the new facility, with five more due to call at Leipzig later this year to serve eastern Europe. DHL is investing EUR300m in Leipzig, which is expected to handle 2,000 tonnes of freight a day at maximum capacity. From 2008, 60-70 aircraft movements through Leipzig are expected every night. Peter Kruse, CEO of DHL said: “Not all [European] aircraft will need to go to Leipzig; our existing hub in Brussels will still be operational as a smaller gateway serving the Benelux.”

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PalletFORCE enhances quality of network service with major investment in IT

Posted by | Jan 30, 2006 | |

PalletFORCE’s commitment to continuous improvement in quality has been underlined by a major investment in a state-of-the-art IT system, providing comprehensive real-time ‘track and trace’ for all of the Network’s Depots and their customers. The installation, designed by logistics specialist Trans-aXion, registers every pallet with a unique identification, which is used to trace deliveries throughout the distribution process. A dedicated section of Trans-aXion’s web-site allows customers to chart the progress of pallets in real-time from dispatch to delivery, the latter confirmed by electronic signature capture.

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Business Post trading statement

Posted by | Jan 30, 2006 | |

Since the Interim Announcement of 14 November 2005, the Board’s expectations of margin improvements in the Group’s Parcel Services business, resulting from improved selling prices and lower costs, have not been achieved. On 5 December 2005, Guy Buswell was appointed Chief Executive. He has made a number of significant changes to the management team designed to simplify and streamline the management of the Group’s activities and provide greater focus to those areas requiring margin improvement. A strategic root and branch approach is now being adopted to the development of the business focusing on customer mix, service and cost control. As part of his assessment of the business as its new Chief Executive, Guy has concluded a review of the franchise network and identified that further one-off investment of GBP1.5m is required in order to secure its long term future. Accordingly, it is anticipated that the additional costs relating to the franchise network will be around GBP4.5m in the current financial year. Consequently, the Board now expects profit before tax and exceptional items for the year to 31 March 2006 to be approximately GBP9m.

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