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UPS to drop its bid to acquire TNT Express due to expected EC disapproval

United Parcel Service Inc (UPS) (UPS Airlines) (Atlanta and Louisville) will drop its bid to acquire TNT Express N.V. (Hoofddorp) because it now expects the European Commission (EC) to deny the acquisition.

On March 19, 2012, UPS announced its intention to acquire TNT Express for $6.7 billion. On September 5, 2012, UPS announced it expected to close the deal in early 2013 subject to EC approval.

UPS will pay TNT a termination fee in the amount of EUR 200 million.

TNT Airways (Liege) is a subsidiary of TNT Express. TNT is now expected to remain independent.

UPS issued the following statement:

United Parcel Service, Inc. announced today (January 14) the European Commission (EC) has informed UPS and TNT Express that it is working on a decision to prohibit the proposed acquisition of TNT Express.

UPS submitted an initial remedies proposal on November 29, 2012 and subsequently revised the proposal twice. UPS began the competitive review process with the EC in March 2012.

Scott Davis, UPS Chairman and CEO said, “We are extremely disappointed with the EC’s position. We proposed significant and tangible remedies designed to address the EC’s concerns with the transaction. The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular.”

Upon prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and UPS will pay TNT a termination fee in the amount of EUR 200 million and will withdraw the Offer.

Further announcements will be made once the European Commission has issued its formal decision. The decision is expected to be adopted formally in the coming weeks.

Top Copyright Photo: Michael B. Ing. Boeing 747-44AF N572UP (msn 35669) climbs away from Anchorage International Airport (ANC).

UPS:

TNT:

Bottom Copyright Photo: Rainer Bexten. Southern Air’s Boeing 777-FHT N778SA (msn 39286) arrives at the Liege, Belgium sorting facility.

FedEx’s 2Q net income slips to $438 million, down 12% from last year’s $497 million, orders four Boeing 767-300 freighters

FedEx Corporation (FedEx Express) (Memphis) today reported earnings of $1.39 per diluted share for the second quarter ended November 30, compared to $1.57 per share last year. Superstorm Sandy impacted the quarter’s results by $0.11 per diluted share due to reduced shipment volumes and incremental operating costs.

Second Quarter Results:

FedEx Corp. reported the following consolidated results for the second quarter:

• Revenue of $11.1 billion, up 5% from $10.6 billion the previous year

• Operating income of $718 million, down 8% from $780 million last year

• Operating margin of 6.5%, down from 7.4% the previous year

• Net income of $438 million, down 12% from last year’s $497 million

The results of the quarter also reflect, primarily at FedEx Express, the net year-over-year negative impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust.

FedEx Express Segment:

For the second quarter, the FedEx Express segment reported:

• Revenue of $6.86 billion, up 4% from last year’s $6.58 billion

• Operating income of $230 million, down 33% from $342 million a year ago

• Operating margin of 3.4%, down from 5.2% the previous year

Revenue increased primarily due to this year’s business acquisitions and growth at FedEx Trade Networks, as core express revenue growth was constrained by global economic conditions and the impact of Superstorm Sandy.

U.S. domestic revenue per package grew 1% as higher rate per pound was partially offset by lower fuel surcharges. U.S. domestic average daily package volume declined 2%. FedEx international export average daily package volume grew 6% driven by increases in FedEx International Economy^®(IE) from Europe and Asia and by increases in FedEx International Priority^® (IP) from Asia. Higher growth in international deferred services continued, with IE volume growing 14%, while IP volume increased 3% during the quarter. International export revenue per package fell 4% due to the demand shift toward lower-yielding international services and lower fuel surcharges.

Operating income and margin were lower due to the demand shift toward lower-yielding international services, the negative year-over-year impact of net fuel changes, increased depreciation expense, the effects of Superstorm Sandy and higher pension costs. These were partially offset by the favorable impact of cost containment actions.

FedEx Express has entered into an agreement to purchase four additional 767-300 freighters as part of the company’s continued fleet modernization efforts. This brings the total 767-300 orders to 50, with deliveries beginning in fiscal 2014. In concert with this commitment, two 777 freighter deliveries were deferred from fiscal 2015 to fiscal 2016 in order to better match capacity timing to global demand.

FedEx Express:

UPS and TNT Express send their merger “remedies” paperwork to the European Commission

United Parcel Service, Inc. (Atlanta and Louisville) and TNT Express N.V. (Hoofddorp) (TNT Airways) have announced, in line with Dutch disclosure requirements, that remedies have been submitted to obtain competition clearance from the European Commission (EC) for the acquisition of TNT Express by UPS. The offer of remedies does not change the terms and conditions of the Offer by UPS for TNT Express.

The proposed remedies aim to address the EC’s concerns regarding the competitive effects of the intended merger on the international express small package market in Europe. UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis.

The proposed remedies comprise the sale of business activities and assets in combination with granting access to air capabilities. Eligible buyers of these activities will have to ensure the long-term viability of the divested activities and continuity of customer service.

No further details of the confidential discussions or proposed remedies will be revealed at this stage. The discussions are ongoing, which means that the offered remedies may be subject to change.

UPS and TNT Express believe their merger will help create a more efficient logistics market, thereby improving the competitiveness of Europe and the solutions offered to businesses and consumers. Customers and consumers will benefit from a broader portfolio of services and better global access, along with lower supply-chain costs overall and improved service levels in terms of timing and reliability.

UPS and TNT Express value their employees highly. Both UPS and TNT Express will follow the required consultation and advice procedures with their works councils with regard to these remedies.

In accordance with EU Merger Regulation, the timing of the remedies submission extends the EC’s review period by 15 business days to February 5, 2013.

Copyright Photo: Michael B. Ing. UPS’ Boeing 747-44AF N571UP (msn 35668) climbs away from Anchorage International Airport.

UPS-United Parcel Service:

TNT Airways:

Nippon Cargo Airlines is coming to Dallas/Fort Worth

Nippon Cargo Airlines-NCA (Tokyo) has announced it will launch new freighter flights connecting Tokyo’s Narita International Airport and DFW International Airport, starting November 5. Nippon Cargo’s twice weekly flights will be the first direct freighter connections for the Dallas/Fort Worth area into Japan, and will bolster DFW cargo lift capacity to Asia while also providing a new connection to a strategically important destination.

Nippon Cargo Airlines will operate the route from Tokyo Narita to Chicago O’Hare, then to DFW Airport, Anchorage, Alaska, and then back to Narita. Nippon Cargo Airlines will fly 747-400 aircraft on the route, and the carrier ultimately plans to phase-in 747-8’s, the most fuel-efficient planes in the industry.

Copyright Photo: Michael B. Ing. Boeing 747-481F JA04KZ (msn 34283) in the special “NCA Green Freighter” scheme climbs majestically away from Anchorage International Airport.

NCA-Nippon Cargo Airlines:

Alaska starts season flights between Anchorage and Kona, Hawaii, reaches a tentative agreement with the IAMAW

Alaska Airlines (Seattle/Tacoma) will start nonstop seasonal service to Kona on the Big Island of Hawaii on November 10 and ends on April 7, 2013. The new service complements the airline’s year-round daily service to Honolulu and seasonal service to Maui which begins on November 4 and ends on April 14, 2013.

Summary of seasonal Anchorage-Kona flights:

Start date	City pair	Departs	Arrives	Frequency
Nov. 10-April 6	Anchorage-Kona	1:15 p.m.	7 p.m.	Saturday
Nov. 11-April 7	Kona-Anchorage	10 a.m.	5:35 p.m.	Sunday

Flights are operated with Boeing 737-800s.

In other news, Alaska Airlines and the International Association of Machinists and Aerospace Workers(IAMAW) jointly announced they have reached tentative agreement on a new six-year contract covering the carrier’s 587 ramp service and stores agents. The agreement includes wage increases of 10 percent over the life of the contract, long-term incentive bonuses, and job security and improved productivity provisions.

Negotiations between the airline and union began in February and culminated in agreement on a proposed contract two months before the current pact becomes amendable. Ratification vote results are expected by August 1, 2012. If approved, the new contract would become amendable in July 2018.

Alaska Airlines:

Atlas Air flies first Boeing 747-400F into the new Dubai World Central-Al Maktoum International Airport

Atlas Air Boeing 747-47UF N492MC (msn 29253) ANC (Tony Storck), originally uploaded by Airliners Gallery.

Atlas Air Worldwide Holdings, Inc. (AAWW) (New York) confirmed the successful operation on October 14 of the first scheduled freighter service into the new Dubai World Central (DWC)-Al Maktoum International Airport on behalf of its long-standing ACMI customer, Panalpina Group.

Atlas Air’s Boeing 747-400 freighter flight initiates a new controlled air freight service by Panalpina. The service will include two weekly flights into Dubai as part of a round-the-world rotation connecting Luxembourg, Dubai, South Africa, Hong Kong, North America and Latin America.

In addition, a second Atlas Air 747-400 freighter is helping Panalpina inaugurate new express service between Huntsville, AL, and São Paulo, Brazil, enhancing connections between Asia, North America and Latin America.

UPS introduces a new “Logistics” ad campaign

UPS-United Parcel Service (UPS Airlines) Boeing 747-45E (BCF) N578UP (msn 27154) ANC (Michael B. Ing), originally uploaded by Airliners Gallery.

UPS-United Parcel Services (UPS Airlines) (Atlanta and Louisville) has dropped the “brown” ad theme and has launched a new “Logistics” ad campaign.

Read the full WSJ article:

CLICK HERE

Watch the TV ad via YouTube:

Atlas Air to fly a second Boeing 747-400F for Panalpina

Atlas Air Boeing 747-47UF N492MC (msn 29253) ANC (Tony Storck), originally uploaded by Airliners Gallery.

Atlas Air Worldwide Holdings, Inc. (New York) has confirmed an agreement to place a second Boeing 747-400 freighter with Panalpina Air and Ocean Ltd.

The multi-year agreement, under which Atlas Air (New York-JFK) will provide ACMI (aircraft, crew, maintenance and insurance) services to freight forwarder Panalpina which was announced on the 20th anniversary of Panalpina’s “Dixie Jet” freighter service connecting Huntsville, AL, with Europe, which is also operated by a Boeing 747-400 Freighter leased from Atlas Air.

The second aircraft, to be based at Panalpina’s European hub in Luxembourg, will operate services from Asia and Africa to Europe; Europe to Africa, the Middle East and Asia; and from Asia to the United States. It is set to begin operating in early October.

Copyright Photo: Tony Storck. A beautiful portrait of Atlas Air’s Boeing 747-47UF N492MC (msn 29253) climbing majestically away from scenic Anchorage.

Asiana Airlines Cargo adds service to Atlanta on September 13

Asiana Airlines Cargo Boeing 747-48EF HL7636 (msn 29170) ANC (Michael B. Ing), originally uploaded by Airliners Gallery.

Asiana Airlines (Seoul) began cargo service to Atlanta on September 13 with Boeing 747-400F freighter aircraft. The new route will be operated four times a week.

Asiana Airlines is the 14th all-cargo airline to serve Hartsfield-Jackson International Airport. Singapore Airlines Cargo began scheduled service to Atlanta in September 2009.

UPS loses N571UP and two crew members at Dubai

UPS Airlines (UPS Parcel Service) Boeing 747-44AF N571UP (msn 35668) ANC (Brian McDonough) (crashed on takeoff at Dubai September 3, 2010), originally uploaded by Airliners Gallery.

UPS Airlines (United Parcel Service) (Atlanta and Louisville) yesterday (September 3) lost its Boeing 747-44AF N571UP (msn 35668) and the two crew members on board when it crashed on takeoff at Dubai.

Click on link below for full view and full details:

CLICK HERE