Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
WaywardMemphian
Topic Author
Posts: 1537
Joined: Sat Dec 13, 2014 9:05 pm

FedEx/TNT Full Steam Ahead

Wed Oct 21, 2015 2:24 pm

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.
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: FedEx/TNT Full Steam Ahead

Wed Oct 21, 2015 2:48 pm

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?

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]
 
HPRamper
Posts: 5113
Joined: Sat May 14, 2005 4:22 am

RE: FedEx/TNT Full Steam Ahead

Wed Oct 21, 2015 4:51 pm

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.
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: FedEx/TNT Full Steam Ahead

Wed Oct 21, 2015 9:49 pm

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/
 
HPRamper
Posts: 5113
Joined: Sat May 14, 2005 4:22 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 12:37 am

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.
 
FlyBTV
Posts: 113
Joined: Thu Jul 19, 2012 3:01 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 4:00 am

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.
 
User avatar
cougar15
Posts: 1449
Joined: Thu Sep 05, 2013 6:10 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 6:14 am

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 !
some you lose, others you can´t win!
 
AWACSooner
Posts: 2571
Joined: Tue Jan 22, 2008 12:35 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 6:30 am

So who gets the pax division (i.e. OO-TFA, the 757 combi)?
 
HPRamper
Posts: 5113
Joined: Sat May 14, 2005 4:22 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 7:13 am

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.
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 8:56 am

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.
 
_AA_777_MAN
Posts: 185
Joined: Fri Oct 27, 2000 1:58 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 10:49 am

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.
 
bigbird
Posts: 365
Joined: Fri Aug 13, 2004 10:38 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 2:17 pm

I do not know what other days they operate to ATL but there is a 777F every Sunday morning.
bigbird from georgia
 
Eurohub
Posts: 244
Joined: Tue Jan 11, 2005 9:11 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 2:41 pm

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!
 
User avatar
N328KF
Posts: 6011
Joined: Tue May 25, 2004 3:50 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 3:02 pm

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
 
PHX Flyer
Posts: 544
Joined: Tue Apr 17, 2001 9:52 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 4:25 pm

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
 
tortugamon
Posts: 6795
Joined: Tue Apr 09, 2013 11:14 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 5:07 pm

Leeham news is reporting that this tie up may trigger an already agreed to 10-unit 77F order.

tortugamon
 
HPRamper
Posts: 5113
Joined: Sat May 14, 2005 4:22 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 5:19 pm

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.
 
User avatar
cougar15
Posts: 1449
Joined: Thu Sep 05, 2013 6:10 pm

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 5:31 pm

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!
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 5:56 pm

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]
 
b747400erf
Posts: 3172
Joined: Wed Jun 19, 2013 4:33 am

RE: FedEx/TNT Full Steam Ahead

Thu Oct 22, 2015 7:31 pm

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.
 
User avatar
cougar15
Posts: 1449
Joined: Thu Sep 05, 2013 6:10 pm

RE: FedEx/TNT Full Steam Ahead

Wed Nov 04, 2015 2:06 pm

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!
 
AWACSooner
Posts: 2571
Joined: Tue Jan 22, 2008 12:35 am

RE: FedEx/TNT Full Steam Ahead

Wed Nov 04, 2015 5:33 pm

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.
 
User avatar
cougar15
Posts: 1449
Joined: Thu Sep 05, 2013 6:10 pm

RE: FedEx/TNT Full Steam Ahead

Fri Nov 06, 2015 7:56 pm

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!

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos