EU commission finds no objectionshttp://m.bizjournals.com/memphis/news/2015/10/20/fedex-tnt-express-hear-no-objections.html
Funny there used to be a nonstop between MEM and AMS
There a locked thread on this and FedEx Ground was brought up, that's based in Harrison Arkansas.
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RE: FedEx/TNT Full Steam Ahead
There were rumors that the commission might want its pound of flesh in exchange for approval, but I think this decision is the right one. Save for a few spots, FedEx has a very small market share in Europe and its merger with TNT doesn't alter the competitive landscape much at all.
In addition, the commission may have learned its lesson with the proposed UPS tie-up. Selling assets is one thing, but to whom? Who is big enough to buy the assets and create meaningful competition for the established players?
Ironic coincidence, TNT operates LGG-ATL-LGG several times a week.
[Edited 2015-10-21 07:48:56]
In addition, the commission may have learned its lesson with the proposed UPS tie-up. Selling assets is one thing, but to whom? Who is big enough to buy the assets and create meaningful competition for the established players?
| Quoting WaywardMemphian (Thread starter): Funny there used to be a nonstop between MEM and AMS |
Ironic coincidence, TNT operates LGG-ATL-LGG several times a week.
[Edited 2015-10-21 07:48:56]
RE: FedEx/TNT Full Steam Ahead
| Quoting blueflyer (Reply 1): Save for a few spots, FedEx has a very small market share in Europe and its merger with TNT doesn't alter the competitive landscape much at all. |
According to Forbes, FedEx will now be the second-largest player in Europe behind DHL, passing up UPS by a percentage point. I'd call that altering the competitive landscape a great deal.
RE: FedEx/TNT Full Steam Ahead
| Quoting HPRamper (Reply 2): According to Forbes, FedEx will now be the second-largest player in Europe behind DHL, passing up UPS by a percentage point. I'd call that altering the competitive landscape a great deal. |
This is an industry where no one, not even Forbes apparently (1), can agree on how to count. Overnight, air express, air and ground, time definite, express and logistics, etc...
The numbers I consistently go by (air/ground express) have a stand-alone TNT second already, and FedEx at 5%, which is the highest I have seen it at. I'll stick with my opinion of the competitive landscape, especially since it isn't going to be altered quickly as analysts and people supposedly in the know believe FedEx/TNT will compete on service, not price.
(1) I went to Forbes out of curiosity and this article puts FedEx/TNT at 22%, UPS at 25% and DHL at 41%.
http://www.forbes.com/sites/greatspe...could-change-the-way-europe-ships/
RE: FedEx/TNT Full Steam Ahead
| Quoting blueflyer (Reply 3): (1) I went to Forbes out of curiosity and this article puts FedEx/TNT at 22%, UPS at 25% and DHL at 41%. |
The article I was reading had very different numbers...but the FedEx number was indeed the same at 5%. No denying that they need TNT to be anywhere near relevant in Europe.
RE: FedEx/TNT Full Steam Ahead
I'm curious, is there any reason why FedEx has had such a little market share in Europe compared to UPS? In my experience, FedEx usually dominates UPS in international markets, although many times they are behind DHL or another operator.
RE: FedEx/TNT Full Steam Ahead
| Quoting blueflyer (Reply 1): Ironic coincidence, TNT operates LGG-ATL-LGG several times a week. |
I think you will find they only fly to JFK, I have certainly never heard of a flight to ATL outta Liege operated by TNT !
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- AWACSooner
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RE: FedEx/TNT Full Steam Ahead
So who gets the pax division (i.e. OO-TFA, the 757 combi)?
RE: FedEx/TNT Full Steam Ahead
| Quoting flyBTV (Reply 5): I'm curious, is there any reason why FedEx has had such a little market share in Europe compared to UPS? In my experience, FedEx usually dominates UPS in international markets, although many times they are behind DHL or another operator. |
UPS had a big head start in growing organically, and American companies most commonly grow eastward across the Atlantic first before moving beyond. With the Flying Tigers purchase, FedEx grew in the other direction, building up Asia. Overall now, UPS is much larger than FedEx in Europe but smaller on every other continent outside North America.
RE: FedEx/TNT Full Steam Ahead
| Quoting cougar15 (Reply 6): I think you will find they only fly to JFK, I have certainly never heard of a flight to ATL outta Liege operated by TNT ! |
Look and you shall find: TAY12/13 and TAY1412/1408.
| Quoting AWACSooner (Reply 7): So who gets the pax division (i.e. OO-TFA, the 757 combi)? |
Probably whoever gets the rest of the fleet. I'd bet on ASL Aviation for no other reason they had already made a deal with UPS to take over TNT Airways.
| Quoting flyBTV (Reply 5): I'm curious, is there any reason why FedEx has had such a little market share in Europe compared to UPS? |
Someone at UPS told me (his opinion, not the company's) FedEx focused too much on infrastructure and not enough on sales and marketing.
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- _AA_777_MAN
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RE: FedEx/TNT Full Steam Ahead
| Quoting cougar15 (Reply 6): Quoting blueflyer (Reply 1): Ironic coincidence, TNT operates LGG-ATL-LGG several times a week. I think you will find they only fly to JFK, I have certainly never heard of a flight to ATL outta Liege operated by TNT ! |
Well you are very wrong. Not only do they fly 744/777 mix LGG-JFK/ATL they also fly LGG-ORD.
RE: FedEx/TNT Full Steam Ahead
I do not know what other days they operate to ATL but there is a 777F every Sunday morning.
bigbird from georgia
RE: FedEx/TNT Full Steam Ahead
| Quoting blueflyer (Reply 3): I'll stick with my opinion of the competitive landscape, especially since it isn't going to be altered quickly as analysts and people supposedly in the know believe FedEx/TNT will compete on service, not price. |
TNT have been targeting quality over price for some time now; the last time my business went out to tender for our EU parcels contract (worth £100-150k pa) TNT's pricing structure put them out of the game - we ended up leaving DHL for UPS for a much improved service with broadly similar pricing. Compared to DHL, we're very impressed with UPS and I'm not sure what TNT/FedEx could offer us above UPS to justify a price premium.
| Quoting blueflyer (Reply 9): Someone at UPS told me (his opinion, not the company's) FedEx focused too much on infrastructure and not enough on sales and marketing. |
FedEx have concentrated much on their UK infrastructure despite buying up domestic ground operator ANC a few years back. International Air and Domestic Ground remain largely separate operations and there is no European Ground (although TNT brings that in spades).
My factory is 15 miles away from our nearest FedEx location and that location is itself 45 miles away from BHX which is the nearest airport with daily FedEx service yet there is no guarantee that the trunker from the depot will reach BHX in time to make the flight. On the occasions it fails to do so, my freight doesn't wait at BHX for the next flight, it is instead trunked by road to STN and flies out during the course of the next day - either way, incurring a 24hr delay on a supposedly next-day service.
Regards,
Eurohub
Forget A vs B - Give me E or BAe any day of the week!
RE: FedEx/TNT Full Steam Ahead
| Quoting blueflyer (Reply 9): Probably whoever gets the rest of the fleet. I'd bet on ASL Aviation for no other reason they had already made a deal with UPS to take over TNT Airways. |
I suspect that FedEx will retain the 777Fs for its own use.
“In the age of information, ignorance is a choice.”
-Donny Miller
-Donny Miller
RE: FedEx/TNT Full Steam Ahead
| Quoting _AA_777_MAN (Reply 10): Well you are very wrong. Not only do they fly 744/777 mix LGG-JFK/ATL they also fly LGG-ORD. |
One of the changes that I expect to materialize in the wake of the takeover, is the relocation of the air hub from LGG to CGN. Fedex built a new sorting facility there in 2010, and has the option of doubling the footprint in size.
"Once you have tasted flight, you will walk the earth with your eyes forever skyward, for there you have been and there you long to return." -Leonardo Da Vinci
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- tortugamon
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RE: FedEx/TNT Full Steam Ahead
Leeham news is reporting that this tie up may trigger an already agreed to 10-unit 77F order.
tortugamon
tortugamon
RE: FedEx/TNT Full Steam Ahead
| Quoting Eurohub (Reply 12): we ended up leaving DHL for UPS for a much improved service with broadly similar pricing. Compared to DHL, we're very impressed with UPS and I'm not sure what TNT/FedEx could offer us above UPS to justify a price premium. |
I am not familiar with typical DHL level of service, nor what TNT offers. In Europe, UPS has a much larger network than FedEx so I'm not surprised service is at least on par with if not better than FedEx. The TNT acquisition, however, offers a lot in terms of North America-originating shipments and is every bit as much about taking away a competitor as it is growing the brand. FedEx is of course expecting that the vast majority of accounts and habitual shippers with TNT will stay with the company through the buyout process and beyond.
| Quoting PHX Flyer (Reply 14): One of the changes that I expect to materialize in the wake of the takeover, is the relocation of the air hub from LGG to CGN. Fedex built a new sorting facility there in 2010, and has the option of doubling the footprint in size. |
I absolutely think this will be the case. Keeping LGG as a major operation was part of the deal, but I never saw any specific wording that mentioned keeping the air hub ops there.
RE: FedEx/TNT Full Steam Ahead
| Quoting HPRamper (Reply 16): I absolutely think this will be the case. Keeping LGG as a major operation was part of the deal, but I never saw any specific wording that mentioned keeping the air hub ops there. |
Well, at LGG they are still the kingpin (the second Level of the controll tower is manned by TNT at LGG ), whilst Fedex in CGN has ´to wait in line behind big Brown´ as the Primary user of the Airport . I expect they may keep LGG, although overall Labor Topics (constant belgian strikes) and weather (fog in the ardenne valley) are a negative compared to CGN.
TNT has just spent a bucket of Money refitting and expanding the LGG hub, it will be interesting to see which way this goes!
One Thing I guess is sure, I dont expect Fedex to stay at CDG ultimately, I hear the Airport Authority would rather have them out sooner than later!
lets see what progresses! Congrads to Fedex and TNT , big Brown is left with the egg in the face.....!
some you lose, others you can´t win!
RE: FedEx/TNT Full Steam Ahead
| Quoting HPRamper (Reply 16): I absolutely think this will be the case. Keeping LGG as a major operation was part of the deal, but I never saw any specific wording that mentioned keeping the air hub ops there. |
Between CDG and CGN, the long-term future doesn't look promising. The only asset that LGG has, in my opinion, is that there is no competition at night, it doesn't have to share runways and taxiways with UPS or ASL France or Lufthansa Cargo... At night, LGG is substantively to TNT what ILN was to ABX. On the other hand, it has only two runways, very little room to expand the TNT apron, and expanding the sort requires convincing other tenants to move to the other side of the airport.
In the mid-term, the hub isn't going anywhere though. FedEx doesn't have the spare capacity to take on the volume without expanding elsewhere, and TNT Express is the beneficiary of government incentives that come with guarantees that are expensive to default on.
In the short-term, it will get a boost in volume. TNT serves more airports in Europe than FedEx does. Packages that FedEx is trucking now to an airport a couple of hours away or putting on commercial flights are going to go on TNT.
I could see LGG becoming an intra-European platform with mostly ground and a few air movements, with intercontinental shipments going to CDG or CGN.
[Edited 2015-10-22 11:15:21]
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- b747400erf
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RE: FedEx/TNT Full Steam Ahead
| Quoting cougar15 (Reply 6): I think you will find they only fly to JFK, I have certainly never heard of a flight to ATL outta Liege operated by TNT ! |
They fly to ORD and ATL
| Quoting AWACSooner (Reply 7): So who gets the pax division (i.e. OO-TFA, the 757 combi)? |
A single aircraft flying charters for nato is hardly important.
RE: FedEx/TNT Full Steam Ahead
so, is there any News on the future of TAY? Will ASL ´come to the Party´? last time around (when UPS tried), there was newsflash´s daily. seems FX/TNT is keeping News much closer to their chest this time around. has anybody heard anything?
some you lose, others you can´t win!
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- AWACSooner
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RE: FedEx/TNT Full Steam Ahead
| Quoting B747400ERF (Reply 19): A single aircraft flying charters for nato is hardly important. |
Considering the amount of Euros we pay TNT to charter it every year...and the fact they haul cargo with it under their normal branded ops when we don't need the plane? I highly doubt they view it as unimportant.
RE: FedEx/TNT Full Steam Ahead
| Quoting AWACSooner (Reply 21): Considering the amount of Euros we pay TNT to charter it every year...and the fact they haul cargo with it under their normal branded ops when we don't need the plane? I highly doubt they view it as unimportant. |
.. and what a floppen dog that Thing is to trim when used in normal ops , trust me
some you lose, others you can´t win!
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