Red Star is set to boost sales
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• British Rail parcel carrier Red Star has lost business by starving its marketing arm of cash to promote its services, according to new boss David Burton, who says the business must become "lean and healthy — damn quickly".
Burton, appointed recently from Network Southeast, says the loss-making operation was right to trim its overall expenditure but did so "unwisely in its marketing endeavour". A sales campaign is planned for the autumn led by marketing director John McCallion.
"One sees a very healthy business where the opportunities are not being realised," adds Burton.
In attempting to turn the business round jobs could go among the 1,600 employees. "Labour represents 35% of our costs — it is bound to be one of the elements we look at," he says.
British Rail subsidiary Red Star faces privatisation, which Burton welcomes. "There are a number of disadvantages in being a public company — one can see advantages in privatisation," he says.
A British Transport Police investigation continues into RoadExpress, the company which carries out Red Star's courier work.