The weekly newspaper for air cargo professionals EU blocks UPS/TNT takeover


tral, but we shared the EC’s concern that there wouldn’t be enough com- petition if UPS took over TNT. I’m not saying they would have become too powerful, but they would have had the potential to.


“Three years ago, DHL was kicked out of the US freight mar- ket and the


freight rates there U


PS’s proposed take- over of TNT Express has collapsed after Europe said it would block the deal. Shares in the


Dutch delivery group fell 49 per cent at the news, wiping €2 bil- lion off its stock market value. The US-based integrator will now have to pay TNT Express a break fee of €200 million.


The EC claims the €5.2 bil- lion merger would have created a duopoly between the merged UPS- TNT and DHL, shutting out FedEx and others.


Scott Davis, UPS chairman and


CEO, said: “We are extremely disappointed with the EC’s posi- tion. We proposed significant and tangible


remedies designed to address the EC’s concerns with the transaction.”


UPS was keen to exploit TNT Express’ network in the booming Asian and Latin American markets. However, Joost van Doesburg, head of European affairs at the European Shippers’ Council (EVO), told Air Cargo Week the EC’s deci- sion is probably for the best. “Competition in the market is really important. Our position is neu-


AA Cargo inks deal, sees Q4 improvements


American Airlines (AA) Cargo has signed a memorandum of under- standing with Global Logistics Network (GLN), a move officials say will increase business oppor- tunities between the two entities. Roger Samways, managing direc- tor of global accounts and sales strategy for AA Cargo, touted the deal a boon for both businesses. “With GLN, I believe we have found a partner where we can develop a relationship that is


mutually beneficial,” he stated. “By working closely together in a more formal way, we hope to increase the business development oppor- tunities for both parties.” Such a partnership signals good news for the American freight car- rier, which has contended with less-than-stellar volumes in recent history. In 2012, American Air- lines’ freight revenue tumbled 4.8 percent, year-on-year, to $669 million. However, the carrier’s vol-


umes only declined 1.2 percent in the fourth quarter. From a company-wide perspec- tive, AA has also seen some signs of growth. The carrier, which filed for Chapter 11 bankruptcy protec- tion


in November 2011, posted a $262 million net profit in the quarter ending 31 December. This figure contrasts greatly from the $1.1 billion net loss its parent company, AMR, recorded in the fourth quarter of 2011.


increased significantly,” he added. “We only have three large express companies in Europe and you can- not compare them with the smaller operators, such as DPD,” he said. The decision leaves TNT Express in limbo. The company was only created in a demerger from its for- mer parent company TNT in 2011 specifically so a merger with UPS or FedEx would be more attractive. Bernard Bot, TNT Express’s act- ing CEO, said the company would “focus on executing our existing strategy” and that the company would release a new strategic review “in due course”.


TNT Express’s sale of its airline to ASL Aviation, which was con- ditional on the merger’s approval, will now be cancelled. It has also faced a series of disappointing set- backs in its attempted expansions into Brazil and China.


Volume: 16 Issue: 3 21 January 2013


CARGO CARE SIGNS UP NEO


2


CZECH AIRLINES SEEKS GROWTH


5


NEW ROUTES PROSPERING


6


ATLANTA EYES UP AIR CARGO


8


Safety fears ground 787s


The European Aviation Safety Authority (EASA) and the US Federal Aviation Au- thority (FAA) have ordered the grounding of all Boeing 787 Dreamliners, follow- ing a series of safety issues that have plagued the aircraft.


All Nippon Airlines suspended its fleet of 787s until further notice after one was forced to make an emergency landing last week (16 January). Similar- ly Japanese Airlines grounded its 787 fleet when it was hit by a wave of faults, including an electrical fire.


Between them, Japan’s two larg- est carriers own almost half of all the Dreamliners currently available on the market.


Airlines in Chile and India have also issued a temporary halt to 787 flights. A statement from the FAA said that airlines must demonstrate battery safe- ty before flights can resume. “We will be taking every necessary step in the coming days to assure our customers and the travelling public of the 787’s safety and to return the air- planes to service,” commented Boeing CEO, Jim McNurney.


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