FedEx and TNT Express have announced a takeover: http://about.van.fedex.com/newsroom/...c-offer-for-all-tnt-express-shares
Press release mentions air operations briefly: "TNT Express’ operations as a European air carrier will be divested to address applicable airline ownership regulations. Where permitted by regulation, FedEx intends to transition TNT Express’ intercontinental air operations to FedEx."
It will be interesting to see how the air component details play out moving forward. Particularly whether any of TNT's fleet is merged into the FX operation and that sort of thing. I personally wouldn't mind seeing a 744 in FedEx colors, and there are a handful of 757s and 777Fs in the TNT fleet that would fit seamlessly into the existing FX fleet.
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- AWACSooner
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RE: FedEx Acquires TNT Express
So what's going to happen to the ops in Liege? Roll them into CGN? Or keep them as a complimentary hub?
RE: FedEx Acquires TNT Express
| Quoting AWACSooner (Reply 1): So what's going to happen to the ops in Liege? Roll them into CGN? Or keep them as a complimentary hub? |
The parties have agreed to certain non-financial covenants including:
- Existing employment terms of TNT Express will be respected.
- The European regional headquarters of the combined companies will be in Amsterdam/Hoofddorp.
- TNT Express hub in Liege will be maintained as a significant operation for the group going forward.
- TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations.
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- northwestEWR
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RE: FedEx Acquires TNT Express
Interesting and quiet move by FedEx! Congratulations to both parties.
That would be great!
| Quoting flyDTW1992 (Thread starter): I personally wouldn't mind seeing a 744 in FedEx colors |
That would be great!
Northwest Airlines - Now You're Flying Smart
RE: FedEx Acquires TNT Express
| Quoting flyDTW1992 (Thread starter): I personally wouldn't mind seeing a 744 in FedEx colors, |
I really would not hold my breath on that one.
RE: FedEx Acquires TNT Express
Well, that was quick. Less than 6 weeks from "Hello" to "Deal."
Interesting to note FedEx is paying about €1 billion less than UPS had offered three years ago. The difference is due to a number of factors such as the lack of potential competitive bidder; divestiture in China and Brazil; a reduction in the number of owned aircraft in the fleet; and less-than-stellar results.
Yes but...
The only 757 owned/operated by TNT is on long-term contract with NATO.
TNT had already decided to wind down its 747 operations before FedEx came calling. Two aircraft are on wet-lease to Emirates until 2017 and 2018, and the other two are to leave the fleet at the end of this year or next if memory serves me well. Somehow I don't think FedEx is going to reverse this decision.
In the short term, FedEx's hubs in CDG and CGN do not have the spare capacity either individually or collectively to handle TNT's volume in LGG. In the long term, I think LGG will focus on intra-European traffic. One of the assets FedEx is most interested in is TNT's road network, for which LGG is better located than either of the other two platforms.
(Edited to remove a stupid reference to PW-powered 777Fs)
[Edited 2015-04-07 01:40:06]
Interesting to note FedEx is paying about €1 billion less than UPS had offered three years ago. The difference is due to a number of factors such as the lack of potential competitive bidder; divestiture in China and Brazil; a reduction in the number of owned aircraft in the fleet; and less-than-stellar results.
| Quoting flyDTW1992 (Thread starter): I personally wouldn't mind seeing a 744 in FedEx colors, and there are a handful of 757s and 777Fs in the TNT fleet that would fit seamlessly into the existing FX fleet. |
Yes but...
The only 757 owned/operated by TNT is on long-term contract with NATO.
TNT had already decided to wind down its 747 operations before FedEx came calling. Two aircraft are on wet-lease to Emirates until 2017 and 2018, and the other two are to leave the fleet at the end of this year or next if memory serves me well. Somehow I don't think FedEx is going to reverse this decision.
| Quoting factsonly (Reply 2): TNT Express hub in Liege will be maintained as a significant operation for the group going forward. |
In the short term, FedEx's hubs in CDG and CGN do not have the spare capacity either individually or collectively to handle TNT's volume in LGG. In the long term, I think LGG will focus on intra-European traffic. One of the assets FedEx is most interested in is TNT's road network, for which LGG is better located than either of the other two platforms.
(Edited to remove a stupid reference to PW-powered 777Fs)
[Edited 2015-04-07 01:40:06]
RE: FedEx Acquires TNT Express
RE: FedEx Acquires TNT Express
| Quoting blueflyer (Reply 5): FedEx is most interested in is TNT's road network, for which LGG is better located than either of the other two platforms |
FedEx lacks a suitable ground service in Europe so the integration of TNT will solve that overnight. Then they can head-to-head with UPS in Europe and speaking as a UPS customer, I'm really excited about that prospect!
Regards,
Eurohub
Forget A vs B - Give me E or BAe any day of the week!
RE: FedEx Acquires TNT Express
Wow. This is impressive. I had no idea this was going on. Seems like it was a pretty quiet deal. UPS' courting was in the news for quite some time before the two parties formally announced the deal.
Restoring Penn State's transportation heritage...
RE: FedEx Acquires TNT Express
This is the exact opposite (geopolitically) from the DHL/Airborne Express deal.
/TNT. I'm dynamite.
/TNT. I'm dynamite.
“In the age of information, ignorance is a choice.”
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-Donny Miller
RE: FedEx Acquires TNT Express
I also see they have a TU-204, and several 737F, and BAE 146 aircraft which would be very cool to see in the FX livery!
RE: FedEx Acquires TNT Express
| Quoting chrisp390 (Reply 11): I also see they have a TU-204, and several 737F, and BAE 146 aircraft which would be very cool to see in the FX livery! |
TNT Airways in not part of the deal, it will be divested to meet european Regulator approval. The BAE fleet is on the way out & wont be around next year.
some you lose, others you can´t win!
RE: FedEx Acquires TNT Express
Didn't these two try to merger not long ago? What changed in the market place? TNT Airways cannot sustain itself soley, who will buy that?
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RE: FedEx Acquires TNT Express
| Quoting cougar15 (Reply 12): TNT Airways in not part of the deal, it will be divested to meet european Regulator approval. The BAE fleet is on the way out & wont be around next year. |
I have to wonder, perhaps FedEx might consider hanging on to the 3x777Fs and transferring them to FX...
| Quoting william (Reply 13): Didn't these two try to merger not long ago? What changed in the market place? TNT Airways cannot sustain itself soley, who will buy that? |
That was UPS (5X). There appear to be no substantial hurdles to this transaction, other than disposition of TNT Airways.
“In the age of information, ignorance is a choice.”
-Donny Miller
-Donny Miller
RE: FedEx Acquires TNT Express
| Quoting william (Reply 13): TNT Airways cannot sustain itself soley, who will buy that? |
probably the same consortium that wanted to buy it when UPS attempted a Takeover. 3V/FX will still Need the lift, just operated by someone with a european AOC.
I also believe the 777´s will not be part of this deal and are likely to be retained, whilst I doubt the 744´s will stick around (or be taken over by whoever takes over the shorthaul fleet) TNT has been trying to offload those for some time. from what I know they were not planning to operate those after 2015 anyway.
I see this deal going ahead, the European Comission will not have the same concerns as they did when UPS attempted a Takeover 2 years. ago.
Great move by fedex, instantly fills the gaps in their Network and this is proibably the best Thing that could have happened to TNT, things had not been well for years....
| Quoting chrisp390 (Reply 11): I also see they have a TU-204, |
The Tupolevs were leased & left the fleet 4 years ago.
some you lose, others you can´t win!
RE: FedEx Acquires TNT Express
It will cerainly give FX a European wiedelivery systemfor their global Network, plus what TNT brins in as Euroen road freight.
i jutbwonder what FX willdo with the "ugly2 freight which does ot ft on a sorinbelt.
i jutbwonder what FX willdo with the "ugly2 freight which does ot ft on a sorinbelt.
Was Erlauben Erdogan!!!
RE: FedEx Acquires TNT Express
| Quoting PanHAM (Reply 17): i jutbwonder what FX willdo with the "ugly2 freight which does ot ft on a sorinbelt. |
FX runs a heavyweight system that does not generally use sort belts, and trucks to deliver large items as opposed to courier vans. I would surmise it would fit right in with the existing system.
RE: FedEx Acquires TNT Express
| Quoting cougar15 (Reply 16): Quoting william (Reply 13): TNT Airways cannot sustain itself soley, who will buy that? probably the same consortium that wanted to buy it when UPS attempted a Takeover. 3V/FX will still Need the lift, just operated by someone with a european AOC. |
More likely than not to be Air Contractors http://www.aircontractors.com/
Flown in: A20N,A21N,A30B,A306,A310,A319,A320,A321,A332,A333,A343,A346,A359,A388,BA11,BU31,(..56 more types..),VC10,WESX
RE: FedEx Acquires TNT Express
I was actually wondering if they start "Fedex Ground" in Europe, because that is what they actually are going to buy with TNT.
Was Erlauben Erdogan!!!
RE: FedEx Acquires TNT Express
| Quoting asctty (Reply 21): There is Fedex Ground operation in Europe. I think TNT's is significantly larger though? |
FX lacks so far a pick up and delivery System covering all of Europe. The acquisition of TNT will change that.
As to FEDEX Ground, in the US that is a completely separate Operation. Even the logo colors are different. Don't mix up the Pick-up and delivery system of the Integrator with a surface cargo Operation they have in the US. With TNT they will have something equivalent. Time will tell what they do with their new Baby, will TNT as a brand Name stay or will it all become FX.
First the acquisition will have to be approved by the EU Mergers commission. The difference between the UPS attempt and GFX is, that UPS already has an extensive European Network.
OTH, would be interesting to see what DHL will do iht the USA now.
Was Erlauben Erdogan!!!
RE: FedEx Acquires TNT Express
| Quoting PanHAM (Reply 22): OTH, would be interesting to see what DHL will do iht the USA now. |
My money is on nothing. Their current international express shipping activities are more profitable than the combined operations ever were, and there's no existing nationwide system they can buy to rebuild a domestic network. If DHL wanted to get back into domestic shipping, it would have to be through organic growth, slow and expensive.
DHL could buy several regional express carriers, such as OnTrak, LSO or SpeeDee, and they'd cover most of the US, but that would get them mostly a ground network with few air links. DHL would also have to consolidate all of them on a unique IT platform, and I think we all remember how well that worked out the last time they tried integrating two distinct systems.
| Quoting GCT64 (Reply 19): More likely than not to be Air Contractors |
When UPS tried to buy TNT, there was a deal in place to sell TNT Airways to ASL Aviation, the parent company of Air Contractors (and Farmair and Europe Airpost). ASL Aviation intended to operate TNT Airways as a separate entity with its own AOC, not merge it into one of its other airlines.
[Edited 2015-04-08 00:08:30]
RE: FedEx Acquires TNT Express
| Quoting PanHAM (Reply 22): As to FEDEX Ground, in the US that is a completely separate Operation. Even the logo colors are different. Don't mix up the Pick-up and delivery system of the Integrator with a surface cargo Operation they have in the US. |
The thing is, FedEx themselves would love to mix up the Pick up and delivery system of FedEx Express with FedEx Ground. If I understand their situation, FedEx Express (an airline) labor laws are governed by the Railway Labor Act, as are all airlines in the US. FedEx Ground (a trucking company), if ever unionized would fall under the National Labor Relations Act. So you would have two (often contradicting) sets of Labor laws to deal with. If I understand correctly, this is why FedEx keeps FedEx Ground separate with independent contractors.
But from a customer standpoint I would see it as an inconvenience having two separate accounts, two separate pickups and drop offs, etc. While UPS operates aircraft, they are solely a trucking company and only deal with one set of labor relation laws. Everything is integrated and their pilots union, the Independent Pilots Association, is the only pilot group in the US governed by the National Labor Relations Act.
So the question I have, does any of the above apply in Europe? If not, and if it is more economical for FedEx Ground to handle all ground operations for FDX there, then it might be something they are looking at. A large chunk of FDX's corporate fleet was in Pittsburgh (headquarters of FedEx Ground) during yesterday's announcement. That may have only been a coincidence and mean nothing.
| Quoting blueflyer (Reply 23): DHL could buy several regional express carriers, such as OnTrak, LSO or SpeeDee, and they'd cover most of the US, but that would get them mostly a ground network with few air links. |
I would think DHL lacks a ground network more than air links. Nothing is to stop them from expanding their air network in the US.
FLYi
RE: FedEx Acquires TNT Express
| Quoting PITrules (Reply 24): So the question I have, does any of the above apply in Europe? If not, and if it is more economical for FedEx Ground to handle all ground operations for FDX there, then it might be something they are looking at. A large chunk of FDX's corporate fleet was in Pittsburgh (headquarters of FedEx Ground) during yesterday's announcement. That may have only been a coincidence and mean nothing. |
Simple answer: NO. Europe is by far not so over regulated as the USA is. Even though we have 27 or 28 member states in the EU and trucking may have a different set of regulations, that stands vs. 50 states of the US each having their own set of regulations. A truck with a collection of license plates of different states would be impossible in Europe.
UPS m FX DHL and my own noodle shop work and operate in principle as freight forearders. I could use FX services, get billed for the line haul by FX and bill my Client what I want. A freight forwarder is an "architect of transportation", organising a transport as to the Needs and requirements of the customer.. I can use outsourced pick up, outsourced terminal handling, do the line haul by the Airline of my choice, and use the Services of an affiliated Agent for customs clearance and delivery at the other end, the destoination of the goods.
So does FX as an Integrator. Or UPS, or DHL, whereby DHL has, besides of their Integrator activities, also a freight forwarder section. All in all, it is much more liberal over here. I don#ät have to ask anyone whether I do sea, land or air transports. TNT will be an asset for FX in Europe as it willopen many doors, at least those which do not Close upon the News that the customers have now to deal with FX instead of wodnerful TNT.
The biggest mistake FX could do now is to change the work style of TNT to "American". Let them continue to be European.
Was Erlauben Erdogan!!!
RE: FedEx Acquires TNT Express
Cargo Facts has below fleet chart covering TNT operations.
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Cargo Facts believe wholly owned TNT Airways and Pan Air would be divested to separate parties, with FedEx being unlikely to lease back much of the capacity.
They see types like the 12 737-400Fs and 3 777F remaining useful but BAe146 and 737-300F capacity would be shed.
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Cargo Facts believe wholly owned TNT Airways and Pan Air would be divested to separate parties, with FedEx being unlikely to lease back much of the capacity.
They see types like the 12 737-400Fs and 3 777F remaining useful but BAe146 and 737-300F capacity would be shed.
From the desert to the sea, to all of Southern California
.. nuthin to add....RE: FedEx Acquires TNT Express
| Quoting LAXintl (Reply 26): Cargo Facts has below fleet chart covering TNT operations. |
The table is not entirely accurate. I think it includes only owned and wet-leased aircraft, but TNT has several block space agreements (for the whole "space") as well.
That brings up the number of 762s and non-owned 752s to three each, for example. Cygnus operates one of the 757s and Icelandair Cargo the others. On the 767 side, two come from ABX and one from West Air Sweden.
[Edited 2015-04-08 17:20:56]
RE: FedEx Acquires TNT Express
as per the rumours, seems ASL is interested in 3V/TNT Airways again, so they may go for the same deal they tried before the UPS Takeover failed.
that would be good for the TAY Crews and Fedex/TNT for lift going forward.
that would be good for the TAY Crews and Fedex/TNT for lift going forward.
some you lose, others you can´t win!
RE: FedEx Acquires TNT Express
new 757 comming online for TNT , OE-LFB in the in their new colours, so still getting new equiptment into the fleet ! Odd that it´s on the austrian Register, anybody know why??
some you lose, others you can´t win!
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