Researcher recommends 'Ryanair model' for An Post
The fortunes of An Post could be reversed if a "Ryanair model" were applied to the business, Chambers of Commerce of Ireland head of research Séan Murphy said today.
Mr Murphy also called on Comreg to reject An Post’s price increase request saying that it would become a significant burden on small businesses.
Speaking this morning, he said: “Most people agree that the future of An Post lies, not in price increases, but in increasing mail volumes - a fact that has also been recognised by An Post unions.
"Past performance suggests that price increases have already had a negative impact on volumes and are no longer the easy option for sustaining revenue.
"By applying the Ryanair model (as applied to Aer Lingus when it was struggling) and making mail a low-cost product, An Post can achieve the desired critical growth in mail volumes as experienced by Italy’s and Denmark’s universal service providers after lowering their tariffs."
