Couriers: NZ Post will cut us out

By Yoke Har Lee

Rival courier companies are protesting against New Zealand Post's plan to buy Ansett Express.

The courier arm of Air New Zealand, Ansett Express is 50:50 owned by Air NZ and Ansett Holdings of Australia.

Courier companies competing in the more lucrative same-day urgent service market said state-owned NZ Post would end up owning more than 40 per cent market share if it bought Ansett Express.

Chris Callen, NZ Post's group manager (distribution), said he had met Commerce Commission officials about 10 days ago and "neither felt that there were any issues at all."

"Our belief is that we won't exercise any true hold on the market because the barriers to entry are low."

The other courier companies said Ansett Express had an advantage in that it had contracted all the cargo space in both Ansett NZ's and Air NZ's aircraft, effectively controlling the "nerve" in same-day couriering.

A commission official confirmed that half a dozen submissions had been received.

"The main concern is related to there being insufficient space for urgent same-day deliveries for other parties using the network. Another issue is one of market share. There may be some other issues and we will be looking at them."

Ansett Express has already been directed by the commission to renegotiate its exclusive deal with Ansett NZ for cargo space. Draft proposals on how this would be done had been submitted to the commission and were being studied, the official said.

Urgent Couriers' managing director, Steve Bonnici, said: "I think there are a lot of reasons why I don't think it should happen. NZ Post would end up with a significant market share. If it inherits Ansett Express' belly space on nationwide flights, combined with CourierPost, they would have the ability to significantly undercut pricing."

But Mr Callen said those who felt the pinch should take a better look at their own operations rather than claim unfair pricing.

Paul Holdom, director at Couriernet, said he had had to reduce his pricing twice in the last year because of NZ Post's price-cutting.

If NZ Post were allowed to buy into Ansett Express, it should be made to divest its courier business to the private sector, he said.

NZ Post was to decide by June 16 whether to buy Ansett Express. It now has rights, as the preferred bidder, to exclusively negotiate the purchase.