Cargo Facts

No products in the cart.

SUBSCRIBE
  • NEWS
  • DATA & FLEETS
  • MAGAZINE
    • Latest Issue
    • Issue Archive
  • PODCAST
  • EVENTS
  • CONSULTING
Monday, July 4, 2022
Log In
No Result
View All Result
  • Aircraft Leasing
  • Capacity & Demand
  • Carriers
  • E-Commerce
  • Engines
  • Express
  • Freighter Aircraft
  • Freighter Conversions
Cargo Facts
  • NEWS
  • DATA & FLEETS
  • MAGAZINE
    • Latest Issue
    • Issue Archive
  • PODCAST
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

FedEx settles with pilots, takes next step with TNT

David Harris by David Harris
August 26, 2015
in Express, Freighter Aircraft, News Archives, Strategy
0
Share on FacebookShare on TwitterShare on LinkedIn
Will TNT's 777Fs soon be painted purple?
Will TNT’s 777Fs soon be painted purple?

It has been an interesting week for FedEx.

First, the company reached a tentative agreement on an amended collective bargaining agreement with the Air Line Pilots Association (ALPA, the union which represents FedEx’s pilots). This puts an end to four years of negotiations, the last ten months of which have been conducted under mediation by the National Mediation Board.

In a message to pilots, the Chairman of the FedEx ALPA Master Executive Council Chuck Dyer made clear that this was not a final contract: “A Tentative Agreement is just that, it’s tentative,” he said. “We have procedural and legal hoops to jump through over the next week or so, but until that process has been completed, the details of the agreement must be held in confidence by the leadership. Once your MEC reconvenes this coming week, they will be in possession of full contract language and will then decide if this Tentative Agreement will be sent to the membership for a ratification vote.”

FedEx also made its next big move in another area of uncertainty: the takeover of Netherlands-based TNT Express. Of course, there is no uncertainty about this takeover on the part of FedEx or TNT, but, just as the tentative pilot contract needs approval by union members before it can become final, the TNT takeover needs the approval of the European Commission. And while the Commission will probably grant approval early next year, “probably” is not “certainly” – as was clearly demonstrated two years ago when the EC torpedoed a similar takeover bid by UPS.

In the meantime, FedEx continued the acquisition process with formal publication of its cash offer for all TNT shares. You can read a fourteen-page description of the offer on the FedEx website, but here are a few of the more interesting bits.

  • The Offer is a public cash offer for all the issued and outstanding ordinary shares,including ordinary shares represented by American depositary shares of TNT Express, at an offer price of € 8.00 (cum dividend) per ordinary share.
  • As from the Settlement Date, David Binks, currently Regional President Europe, FedEx Express, will join the TNT Express Executive Board as Chief Executive Officer. Mark Allen, Senior Vice President – Legal International, FedEx Express, will then also join the Executive Board. Maarten de Vries will remain in office as Chief Financial Officer for a period of six months following the Settlement Date.
  • Tex Gunning, FedEx and the Supervisory Board of TNT Express, have agreed that Mr. Gunning will resign as CEO and as member of the TNT Express Executive Board on the Settlement Date.
  • After successful completion of the Offer, the Supervisory Board will be composed of three new members selected by FedEx (being David Cunningham, Christine Richards and David Bronczek, who will act as chairman) and two persons qualifying as independent within the Dutch Corporate Governance Code (the Independent Members) (being Margot Scheltema and Shemaya Levy Chocron, both members of the current Supervisory Board).
  • The combined companies will cooperate to avoid any significant redundancies in the global or Dutch work forces.
  • Amsterdam/Hoofddorp will become the European regional headquarters of the combined companies.
  • Liege will be maintained as a significant operation for the group going forward.
  • 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.
  • The brand name of TNT Express will be maintained for an appropriate period. FedEx and TNT Express will ensure that the TNT Express group will remain prudently financed, including with respect to the level of debt, to safeguard business continuity and to support the success of the business.

There is more, much more, and the full document is worth a read. But reading between the lines of the above points leads to a couple of interesting conclusions.

First, it is clear from the last bullet point above, that the TNT name will disappear. Not immediately, but before long.

Not quite as clear is the fate of the Liege air hub. FedEx says it will be maintained as “a significant operation of the group going forward.” But what does “a significant operation” mean? Who knows? It could mean just about anything. FedEx seems unlikely to move its main European hub from its current location at Charles de Gaulle Airport in Paris, and maintaining two significant express hubs just 275 km apart makes little sense.

And finally, regarding the fleet, the offer appears to confirm our earlier speculation that while TNT’s European air operations will be sold (to conform with EU law on airline ownership), the long-haul operations will be taken over by FedEx Express. It would make sense for FedEx to acquire TNT’s three 777Fs, as FedEx already has twenty-six of the type in its fleet and has seventeen more on order with Boeing. TNT Airways also has four 747-400ERFs, two of which it operates for Emirates on an ACMI basis. FedEx has no 747s of any variant, and it is hard to see the company incorporating the four TNT units into its fleet, so these will likely be returned to the lessors as soon as possible.

Tags: 777FAir Cargo StrategyFedExTNT
Previous Post

Uni-Top takes first A300-600F… now what?

Next Post

China’s economy and the air freight industry

Related Posts

80+ new deliveries and fresh conversions join global fleet in H1 2022
Freighter Aircraft

80+ new deliveries and fresh conversions join global fleet in H1 2022

June 30, 2022
Listen: Widebody freighter happenings and expectations for the Dubai Airshow
Freighter Aircraft

Listen: Large widebody developments, rumors of an An-225 rebirth and an actual reawakening

June 24, 2022
White Walker resurrects 747-200F after long-term storage
Freighter Aircraft

White Walker resurrects 747-200F after long-term storage

June 24, 2022
Next Post

China's economy and the air freight industry

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Latest Issue

CARGO FACTS CONSULTING

Listen: CFC Freighter Forecast and market outlook

Listen: CFC Freighter Forecast and market outlook

May 21, 2022
Cargo Facts Consulting updates 20-year freighter forecast

Cargo Facts Consulting updates 20-year freighter forecast

May 20, 2022
  • About Us
  • Contact Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

twitter twitter linkedin podcast

© 2022 Royal Media & Cargo Facts

No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data & Fleets
  • Magazine
    • Latest Issue
    • Issue Archive
  • Podcast
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2022 Royal Media & Cargo Facts

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Powered By MemberPress WooCommerce Plus Integration
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
PHPSESSIDsessionThis cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
cbCookieAcceptedsessionThis cookie is used by Caspio (FAT Database) has not yet been given a description. Our team is working to provide more information.
cbParamListsessionThis cookie is used by Caspio (FAT Database) has not yet been given a description. Our team is working to provide more information.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
li_gc2 yearsLinkedIn uses to store consent of guests regarding the use of cookies for non-essential purposes
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSALB7 daysAWSALB is an application load balancer cookie set by Amazon Web Services to map the session to the target.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid1 yearVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-71 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
xn_uuid1 monthThis cookie is set by NING during sign-in, and serves as your identity on the network, and indicates that you are signed in.
Save & Accept
Powered by CookieYes Logo
Go to mobile version