FedEx is planning to slash as many as 6,300 jobs in Europe to remedy the duplication of jobs resulting from the process of combining its operations with the TNT Express unit it purchased in 2016 for €4.4bn.

The group’s capacity would drop from around 40 to around 15 aircraft at Belgian Liege airport. Liege would thus become a “secondary” European hub, Roissy-Charles De Gaulle being the main one. FedEx’ dual hub network in the U.S.

FedEx said, it expects to incur charges of between US$300- $575 million through fiscal 2023 with the TNT operation.

https://www.reuters.com/article/us-fede ... 9O1OY?il=0
https://www.aviation24.be/airlines/fede ... paris-cdg/


Well well. Many felt FX-TNT deal was not ideal when proposed, instead TNT being a better fit for UPS.

What aircraft does FedEx operate in Europe?.

MD10s will be retired by 2023, with the -10 series leaving this year.

UPS was the better fit.

Sad part is European Commission opposed the UPS-TNT fearing it would hurt competition and that TNT might disappear under UPS, but now basically FedEx has done that for them realizing its cant continue fund losses and maintain the duplicate staff/facilities.

The TNT-UPS road freight network would have been a strong match, and UPS likely would have maintained Liege as air hub.

Will their CGN hub be affected as well?

UPlog wrote:

UPS was the better fit.

Sad part is European Commission opposed the UPS-TNT fearing it would hurt competition and that TNT might disappear under UPS, but now basically FedEx has done that for them realizing its cant continue fund losses and maintain the duplicate staff/facilities.

The TNT-UPS road freight network would have been a strong match, and UPS likely would have maintained Liege as air hub.

The EU Commission blocked the merger because they saw it as decreasing competition, being particularly concerned about overnight delivery rates and the fact that economic benefits were not to passed on to clients but kept as profits. They did not block it because of fears TNT might disappear. Ultimately their decision was rescinded by the European Court of Justice.

JeremyXWB wrote:

Will their CGN hub be affected as well?

I thought UPS had a hub at CGN, not FedEx.

bennett123 wrote:

What aircraft does FedEx operate in Europe?.

As far as I know, their European fleet is as follows:

757s and 767s are operated by FedEx itself.
Whilst ACMI operators operates 737-400s, 737-800s, ATR 42s and ATR 72s on behalf of FedEx.

I thought LGG served as a reliever of sorts for CDG, do they no longer feel the extra demand is there, and thus LGG isn't needed?

bennett123 wrote:

What aircraft does FedEx operate in Europe?.

Many, beacuse some european airlines operate flights for them.

One of our costumer (an airline) at Paris Cdg operates some flights in Europe for Fedex, mainly to Germany, Spain, Finland, Turkey, UK

At Paris Cdg:

Owned FedEx aircraft: B757s (Europe), B767s (Europe, USA), MD11s (Europe, Dubaï, USA) and B777s (Europe, USA, Asia). B767 replaced the A300s few years ago.

Operate for FedEx (sometimes with FedEx Livery), but aircraft not owned by FedEx: B737-300/400/800, ATR. Per exemple ASL Ireland ATRs are operating cargo flights between CDG and Shannon

At Paris Cdg, for departures the rush is between 11h pm and 4h am. One of busiest day is Saturday

I see also sometimes some FedEx pilots in Roissy Terminals arriving from Cologne or USA, as pilot with a FedEx aircraft, making deadhead flights to Asia to make another flight from Asia to USA as pilot with a FedEx aircraft.

The OP says that they operate 40, which will reduce to 15.

Is that consistent with the FedEx owned fleet?.

My heart goes out to those losing their jobs. This pandemic is unfortunately going to reset the economy lower.

With how well cargo is doing, it shows other aspects are struggling.

toga998 wrote:

Sad day for many European in the aviation/logistics sector. Hopefully the industry can prevail for those losing their jobs affected by this change.

It is sad the industry has many aspects in survival mode.

Lightsaber

Boeing757100 wrote:

MD10s will be retired by 2023, with the -10 series leaving this year.

So? FedEx doesn't fly those in Europe.

UPlog wrote:

The TNT-UPS road freight network would have been a strong match, and UPS likely would have maintained Liege as air hub.

There is no way UPS would have maintained both CGN and LGG as UPS air hubs. Maybe only if UPS was to maintain TNT as a separate entity in an effort to shift UPS volume on to TNT for the purpose of subverting the UPS pilots scope clause would LGG remain open... at the detriment of CGN.

Westerwaelder wrote:

The EU Commission blocked the merger because they saw it as decreasing competition, being particularly concerned about overnight delivery rates and the fact that economic benefits were not to passed on to clients but kept as profits. They did not block it because of fears TNT might disappear. Ultimately their decision was rescinded by the European Court of Justice.

But did the European courts award UPS their $2 billion claim?

rukundo wrote:

Owned FedEx aircraft: B757s (Europe)

I wonder if these U.S. registered or EU registered. I assume they crewed by EU crews?

AC4500 wrote:

JeremyXWB wrote:

Will their CGN hub be affected as well?

I thought UPS had a hub at CGN, not FedEx.

Fedex has a hub at CGN as well since 10 years.

source in German only https://newsroom.fedex.com/newsroom/zehn-jahre-fedex-express-drehkreuz-am-koeln-bonn-airport/

oldJoe wrote:

AC4500 wrote:

JeremyXWB wrote:

Will their CGN hub be affected as well?

I thought UPS had a hub at CGN, not FedEx.

Fedex has a hub at CGN as well since 10 years.

source in German only https://newsroom.fedex.com/newsroom/zehn-jahre-fedex-express-drehkreuz-am-koeln-bonn-airport/

DHL too ... I guess CGN is a great place to be for cargo https://www.cargoforwarder.eu/2019/11/2 ... n-cologne/

This has to be a huge hit for ASL.

I guess there might have been some kind of 5 year clause in the contract from the TNT take over that has now lapsed. That's the only reason I can come up with for why they would take this step right now when freight is booming.

I hope ASL can find new jobs for many of the affected on the Prime Air side instead.

INFINITI329 wrote:

rukundo wrote:

Owned FedEx aircraft: B757s (Europe)

I wonder if these U.S. registered or EU registered. I assume they crewed by EU crews?

The FedEx 757F's are registered in the batch of N770FD - N799FD, N901FD - N999FD.

lightsaber wrote:

My heart goes out to those losing their jobs. This pandemic is unfortunately going to reset the economy lower.

With how well cargo is doing, it shows other aspects are struggling.

toga998 wrote:

Sad day for many European in the aviation/logistics sector. Hopefully the industry can prevail for those losing their jobs affected by this change.

It is sad the industry has many aspects in survival mode.

Lightsaber

It`s always bad when people lose their job !
Strange for me is that DHL in 2020 has just created 10000 new jobs because of the pandemic and the DHL Center in Cologne had a record high in 2020 at an airport where Fedex and UPS have a hub.
source in German only : https://www.express.de/koeln/corona-effekt-extrem-paket-rekord--koelner-dhl-zentrum-knackt-2020-irre-marke-37923726?cb=1611172297204

Something else must be the reason for this step but not the pandemic

How big is the CDG hub anyways? I doubt it’s anything like IND or MEM. I hope they at least grow the CDG hub to compensate.

TC957 wrote:

INFINITI329 wrote:

rukundo wrote:

Owned FedEx aircraft: B757s (Europe)

I wonder if these U.S. registered or EU registered. I assume they crewed by EU crews?

The FedEx 757F's are registered in the batch of N770FD - N799FD, N901FD - N999FD.

In deed all B757 with the Fedex livery have US registration

B777s B767s and MD11s that we have at CDG have US registration.

About B737s or ATRs which have Fedex livery, are mainly operated by ASL, with an Irish Registration. Others aircraft have either ASL or Swifrair livery. They sometimes uses Swiftair (SWIFT), TNT (TAY) or ASL (ABR) callsign.

About the FedEx crew that i have seen in terminal. Only US pilot, but i didn't see many pilots. FedEx has its own facility at CDG. Few weeks ago, i asked to a FedEx pilot, if they are some French pilots working at FedEx. He told me yes, but not many. I don't know for others nationalities.

777, MD11, 757 and 767 are owned and operated by Fx
737 flying to/from CDG are usually ASL France.
the other are operated by ASL Belgium (previously TNT)
About the ATRs used in Europe, they are operated by Swiftair and ASL Ireland.
In the ASL Ireland planes, those with a registration starting with EI-FX are owned by Fedex, leased to ASL, operated by ASL on behalf of Fx.
the other ones belong directly to ASL

oldJoe wrote:

lightsaber wrote:

My heart goes out to those losing their jobs. This pandemic is unfortunately going to reset the economy lower.

With how well cargo is doing, it shows other aspects are struggling.

toga998 wrote:

Sad day for many European in the aviation/logistics sector. Hopefully the industry can prevail for those losing their jobs affected by this change.

It is sad the industry has many aspects in survival mode.

Lightsaber

It`s always bad when people lose their job !
Strange for me is that DHL in 2020 has just created 10000 new jobs because of the pandemic and the DHL Center in Cologne had a record high in 2020 at an airport where Fedex and UPS have a hub.
source in German only : https://www.express.de/koeln/corona-effekt-extrem-paket-rekord--koelner-dhl-zentrum-knackt-2020-irre-marke-37923726?cb=1611172297204

Something else must be the reason for this step but not the pandemic

I speculate it is because FedEx went away from Amazon right before the pandemic. Fedex continued to handle traditional express which, in my opinion, should have dried up in 2020. Is this possibly due to DHL doing well in Asia?

This is a 1% reduction in global workforce for FedEx. With 43,000 at TNT, that is bad... but manageable.

https://www.msn.com/en-us/money/compani ... r-BB1cTpRY

I would have thought FedEx would grow. I wonder if DHL increased market share?

Lightsaber

flyPIT wrote:

There is no way UPS would have maintained both CGN and LGG as UPS air hubs. Maybe only if UPS was to maintain TNT as a separate entity in an effort to shift UPS volume on to TNT for the purpose of subverting the UPS pilots scope clause would LGG remain open... at the detriment of CGN.

UPS committed to maintaining the Liege "Euro Hub" and protecting employment and further develop long term plans for the airport. The TNT operation at LGG was larger than UPS CGN ops at the time, so if anything, CGN might be one that lost flying.

INFINITI329 wrote:

I wonder if these U.S. registered or EU registered. I assume they crewed by EU crews?

In addition to contractor flying, FX has N registered planes in Europe plus a US pilot crew based at CDG

tofen wrote:

This has to be a huge hit for ASL.

I guess there might have been some kind of 5 year clause in the contract from the TNT take over that has now lapsed. That's the only reason I can come up with for why they would take this step right now when freight is booming.

I hope ASL can find new jobs for many of the affected on the Prime Air side instead.

I think you’re correct about a restriction expiring. Demand continues to be robust.

Cologne is the European hub for UPS. Certainly meant to stay with huge sorting infrastructure built new and some important industrial and population region next door. Fedex invested there as well however not as huge.

LAXintl wrote:

UPS committed to maintaining the Liege "Euro Hub" and protecting employment

So did FedEx.

oldJoe wrote:

lightsaber wrote:

My heart goes out to those losing their jobs. This pandemic is unfortunately going to reset the economy lower.

With how well cargo is doing, it shows other aspects are struggling.

toga998 wrote:

Sad day for many European in the aviation/logistics sector. Hopefully the industry can prevail for those losing their jobs affected by this change.

It is sad the industry has many aspects in survival mode.

Lightsaber

It`s always bad when people lose their job !
Strange for me is that DHL in 2020 has just created 10000 new jobs because of the pandemic and the DHL Center in Cologne had a record high in 2020 at an airport where Fedex and UPS have a hub.
source in German only : https://www.express.de/koeln/corona-effekt-extrem-paket-rekord--koelner-dhl-zentrum-knackt-2020-irre-marke-37923726?cb=1611172297204

Something else must be the reason for this step but not the pandemic

Amazon.

LAXintl wrote:

flyPIT wrote:

There is no way UPS would have maintained both CGN and LGG as UPS air hubs. Maybe only if UPS was to maintain TNT as a separate entity in an effort to shift UPS volume on to TNT for the purpose of subverting the UPS pilots scope clause would LGG remain open... at the detriment of CGN.

UPS committed to maintaining the Liege "Euro Hub" and protecting employment and further develop long term plans for the airport. The TNT operation at LGG was larger than UPS CGN ops at the time, so if anything, CGN might be one that lost flying.

INFINITI329 wrote:

I wonder if these U.S. registered or EU registered. I assume they crewed by EU crews?

In addition to contractor flying, FX has N registered planes in Europe plus a US pilot crew based at CDG

The UPS Operation at Cologne is much larger than TNT at Liege!

lightsaber wrote:

oldJoe wrote:

lightsaber wrote:

My heart goes out to those losing their jobs. This pandemic is unfortunately going to reset the economy lower.

With how well cargo is doing, it shows other aspects are struggling.




It is sad the industry has many aspects in survival mode.

Lightsaber

It`s always bad when people lose their job !
Strange for me is that DHL in 2020 has just created 10000 new jobs because of the pandemic and the DHL Center in Cologne had a record high in 2020 at an airport where Fedex and UPS have a hub.
source in German only : https://www.express.de/koeln/corona-effekt-extrem-paket-rekord--koelner-dhl-zentrum-knackt-2020-irre-marke-37923726?cb=1611172297204

Something else must be the reason for this step but not the pandemic

I speculate it is because FedEx went away from Amazon right before the pandemic. Fedex continued to handle traditional express which, in my opinion, should have dried up in 2020. Is this possibly due to DHL doing well in Asia?

This is a 1% reduction in global workforce for FedEx. With 43,000 at TNT, that is bad... but manageable.

https://www.msn.com/en-us/money/compani ... r-BB1cTpRY

I would have thought FedEx would grow. I wonder if DHL increased market share?

Lightsaber

This nothing to do with the pandemic, all integrators are facing record volumes daily worldwide. .

Wow, you'd think cargo booming as it is right now, there would be nothing but expansion. I guess it makes sense as a necessary consolidation step. Very sad to see 6,000+ aviation professionals out on the street under these already horrendous times.

Will we see more aircrafts based in CDG as they will focus their operations there?

LAXintl wrote:

In addition to contractor flying, FX has N registered planes in Europe plus a US pilot crew based at CDG

The only European pilot base for FX is a 757 base at CGN. Any other flying in/out of Europe is staffed from US bases (the HKG 767 pilots only fly intra-Asia).

panam330 wrote:

LAXintl wrote:

In addition to contractor flying, FX has N registered planes in Europe plus a US pilot crew based at CDG

The only European pilot base for FX is a 757 base at CGN. Any other flying in/out of Europe is staffed from US bases (the HKG 767 pilots only fly intra-Asia).

And the EU closes their eyes on this particular topic, in order to "protect jobs" on the ground.

https://www.cargoforwarder.eu/2017/07/3 ... perations/