Austrian Post is starting a new ‘b-class’ letter delivery service this month and subsidiaryFeibra will launch its new ‘budget’ addressed mail service in June to broaden the group’s choice of
mail products, a senior executive said yesterday.The two moves are a response to declining mail volumes, Walter Hitziger, management board memberresponsible for mail told the World Mail & Express Europe conference in Brussels. A BostonConsulting Group survey had found that speed of delivery was a minor service parameter for senders,while the current delivery frequency exceeded receiver requirements, he pointed out.
From this month, business customers have a choice between a ‘Premium’ product, offering next-daydelivery, and a slower ‘Economy’ product, with delivery in 2-3 days. The Premium product starts at€0.62 for a standard domestic letter while Economy costs €0.57 for a standard letter. Privatecustomers will continue to be served by the Premium product in line with USO requirements.
Austrian Post will provide the two-speed service by splitting delivery routes into two areas.Premium letters will be delivered to both areas every day but the slower Economy letters will onlybe delivered to one of the two areas each day, with the other area covered on the following day,Hitziger told an audience of European postal managers. This amounts to an overall second-dayservice.
Meanwhile, subsidiary company Feibra, which provides unaddressed mail distribution services, hasnow received a licence for an addressed mail service that will be started in June, he added. CEOGeorg Pölzl had already disclosed in March that Austrian Post would use Feibra as aprice-aggressive ‘budget brand’ under a new two-brand strategy.
In addition, Austrian Post will introduce more automated sorting technology, offer new mailsolution services and online products and services to compensate for the mail decline, Hitzigersaid.
In 2010, the company saw a 2.5% decline in letter mail revenues and a 3% addressed mail volumedecline due to electronic substitution but direct mail revenues rose 3% due to a general economicrecovery.
Hitziger also described Austrian Post’s parcels and logistics business as a growth area. InAustria the company expects business customer parcel volumes to grow by 2% to 79 million itemswhile private customer volumes will increase 4% to 63 million parcels, he said.
