Deutsche Post threatens price war in 2008

Deutsche Post AG chief executiveKlaus Zumwinkel is prepared tomake drastic price cuts in the Germanmail market should it lose significantmarket share to rivals when its virtualmonopoly on letter delivery expires in2008, the Financial Times Deutschlandreported. "If I lose too much market share, then I have some price cuts in reserve that will certainly throw our […]


Deutsche Post AG chief executiveKlaus Zumwinkel is prepared tomake drastic price cuts in the Germanmail market should it lose significantmarket share to rivals when its virtualmonopoly on letter delivery expires in2008, the Financial Times Deutschlandreported.

"If I lose too much market share, then I have some price cuts in reserve that will certainly throw our competitors into disarray," Zumwinkel said. Thechief executive did not provide furtherdetails on the possible price cuts.

The newspaper said that DeutschePost currently controls about 90 percentof the German letter delivery market.This business last year accountedfor 30 percent of Deutsche Post’s totalrevenue and almost half of its profits.However, rivals such as TNT, Pin anda range of local delivery services areeager to expand their presence in theGerman market. The newspaper saidthat TNT and Pin want to gain a 10percent share of the German letterdelivery market within the next fiveyears.