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Royal Mail poised to axe Saturday deliveries
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26 June 2007
Postcomm chief executive Sarah Chamber told a conference that reducing deliveries from six to five days a week was under consideration to help Royal Mail cut its losses.
It is one of a range of options in the regulator's strategy review of post services beyond 2010.
The idea comes three years after Royal Mail was allowed to end second daily deliveries to help restore it to profitability.
Ms Chambers told the conference-organised by the Institute of Economic Affairs, that Royal Mail is required to provide a more "Rolls-Royce" service than other European postal services.
Elsewhere in Europe a fivedaya-week delivery is standard.
Royal Mail believes delivering mail six days a week at uniform prices is economically unsustainable-without big increases in stamp prices. It loses 7p on every first-class letter.
At the London conference yesterday Ms Chambers said dropping the six-day requirement could keep stamp prices down.
A Postcomm spokeswoman said: "At this stage it is just blue-sky thinking."
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