Mail call: Australia Post's future business plan

By The Canberra Times
Updated April 23 2018 - 10:00pm, first published June 10 2014 - 7:48pm

Reports that Australia Post is planning to shed up to 900 jobs will surprise no one familiar with the extent to which the digital revolution has undermined the financial viability of postal services around the world. Australia Post has been one of the better adapters in a world where letters have been increasingly supplanted by electronic mail and mobile phone communications. Indeed, it has continued to post strong profits, the most recent being $312 million last year. Of that, $243 million was returned to its single shareholder, the Commonwealth. Britain's Royal Mail and the US Postal Service, by contrast, have racked up billions of dollars in losses in their struggle to cope with plunging mail volumes. But now Australia Post chief executive Ahmed Fahour has warned that the losses associated with letter delivery will top $350 million this financial year and that these can no longer be cross-subsidised by profits from other parts of the business.

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