Tag: Mail Services

Delivering tough postal competition

Few markets are harder to open than postal services. Slowly but surely, e-mail, regulation, competition and market fragmentation are forcing national operators to rethink their models. Europe’s pace is about to quicken. Denmark will soon announce the winner of a 25 per cent stake in Post Danmark, with Dutch TPG and Germany’s Deutsche Post among contenders. Belgium wants a minority partner to modernise its service: TPG and France’s La Poste are rumoured to be considering bidding jointly. Cross-border consolidation so far has been held back by slow liberalisation and national sensitivity. Austria balked last year at partial privatisation for fear its service would land in German hands. Change has to come. Under EU pressure, the legally permissible monopoly on letters dropped from 350 to 100 grams in 2003 and falls to 50 next year. Markets are supposed to be open completely by 2009, though several may not be ready.

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USPS cuts tie to American Airlines

The US Postal Service says it has suspended American Airlines’ contract to deliver domestic mail after the airline failed to meet performance measures – a decision that could cost the carrier millions. For consumers, mail delivery won’t be affected, postal officials say. But the decision could cost the airline tens of millions of dollars this year, at a time when Fort Worth-based American is already struggling with high fuel prices and intense competition that has driven down airfares. American executives, however, dispute the postal service’s assertion. They say the contract remains in force, although they acknowledge that the airline is in talks with the post office regarding future mail delivery. “We’re having a conversation about the nature of our relationship,” said Tim Wagner, an airline spokesman. “But our contractual relationship with the postal service has not changed.” Wagner also noted that American’s international mail delivery business remains unaffected.

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Deutsche Post plans legal action over letter monopoly

Deutsche Post is facing a demand by the country’s antitrust authority that it open up its own network to rival operators in the area of pre-delivery services for letters weighing under 100g. These include as collection and pre-sorting, among other activities. The authority has also demanded that the postal operator allow discounts to rivals in this area. Until now, it has allowed discounts only to large customers. Deutsche Post is planning legal action against the decision in the hope of delaying the change until the ending of its monopoly on letters in 2008.

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Pitney Bowes Expands Global Reach

Pitney Bowes Inc. (NYSE: PBI) today announced that it has completed two transactions that extend its penetration and reach outside of the U.S. — the acquisition of certain assets of Kilburn Office Automation Ltd. (Kilburn) in India and the formation of a joint venture with Semco Participacoes Limitada (Semco) in Brazil. Through these transactions Pitney Bowes is establishing direct sales operations in two of the world’s top fifteen mailing markets, whose combined mail volumes are approximately 23 billion pieces annually.

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Correo Argentino to stay in state hands

The Argentine government will keep postal service Correo Argentino under state control, reversing an earlier plan to re-privatize the company, Planning Minister Julio De Vido said Friday. “At this time (re-privatization) is not being considered because of the excellent management that’s being carried out and, fundamentally, because of the results,” De Vido said at a presentation of the company’s 2004 revenues, according to a press release from the presidential office.

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