UPS sells TNT Airways

[thunderstorm1]

United Parcel Service Inc. (UPS) confirmed Friday that its planned $6.8 billion acquisition of TNT Express (TNTE.AE) of the Netherlands will mandate the sale of TNT's small airline, TNT Airways, before the deal closes.
UPS said European Union rules against foreign ownership of an airline prevent it from being included in the deal.
"UPS and TNT plan to sell [TNT Airways] to comply with EU regulations," UPS spokesman Norman Black said.
In a document filed Friday with the U.S. Securities and Exchange Commission regarding its TNT Express deal, UPS noted that both companies "shall endeavour to ensure that TNT's airline operations will be able to continue to operate despite the change in ownership and control." It also said they'll cooperate to have "a legal, organisational and management structure" in place for TNT Airways that complies with all applicable regulations by the time the deal closes.
Black said the clause is a recognition "that, at the time of closing, a new ownership structure will have to be established for the TNT airline."
TNT Airways, based at Liege Airport in Belgium, has about 45 jets and provides cargo and some passenger charter service, primarily to European destinations.


Read more: UPS Confirms TNT Airways To Be Sold Prior To TNT Express Acquisition | Fox Business (http://www.foxbusiness.com/news/2012/03/23/ups-confirms-tnt-airways-to-be-sold-prior-to-tnt-express-acquisition/#ixzz1q1Hskdct)

[kbrockman]

already discussed in other thread

[Dihaz]

kbrockman,

How the hell did you come to that conclusion? Thats the total opposite of what they're saying.

BTW, only two 744's belong to EK.

[grounded27]

TNT express, TNT airways. I am curious what type of aircraft (45 of them) the subsidiary TNT airways operates? Also what assets express holds. Looks like a possible re-structuring plan for airways.

[newscaster]

According to ch-aviation fleet lists updated monthly, TNT have ended 747 service for EK and are only flying one 777F for them, while EK's last two 747s are operated by Atlas.

[Acid-drop]

all 4 744 have been seen in LGG this week
as well as 2 777

[Oubi]

TNT airways sold to ASL aviation

ASL | Media (http://aslaviationgroup.com/index.php/media/single/asl-aviation-group-to-acquire-tnt-airways-and-pan-air-lineas-aereas)

[Moneyjunkie]

Good news for the TNT guys then ?? Jobs seems secure for now and ASL must be a serious partner for FEDX/UPS etc.. maybe it turns out for the best for the TNT boys :ok: fingers crossed for some good news for the EU boys.

[KBPsen]

Good news for the TNT guys then ??Who knows? A sale is inevitable if the UPS take-over is to go ahead, so that is in itself neither good or bad.

If I were a TNT Airways employee I would be more concerned with the 1 year grace period that is apparently part of the deal. Or rather what happens when it expire.

[edie]

Buying TNT shares right now would be a gutsy move. Huge upside if the deal does go through. Downside unknown!

TNTE.AS Basic Chart | TNT EXPRESS Stock - Yahoo! Finance (http://finance.yahoo.com/q/bc?s=TNTE.AS+Basic+Chart&t=3m)

Hedge funds face losses over UPS-TNT deal - FT.com (http://www.ft.com/intl/cms/s/0/cf96ef44-31aa-11e2-b68b-00144feabdc0.html#axzz2CcKqiMdD)

Hedge funds face losses over UPS-TNT deal

By Alex Barker in Brussels, and Anousha Sakoui and Sam Jones in London

Hedge fund managers stand to lose hundreds of millions of dollars if the merger of UPS and TNT Express, one of the largest European deals this year, falls apart after unexpected extensive competition objections from the European Commission.

So-called merger arbitrage funds piled into Dutch logistics company TNT this year, expecting to pick up healthy profits as the deal neared completion at a premium to the company’s share price.

For the past week the market has been giving the deal just a 50:50 chance of success. With those odds, some merger arbitrage funds have thrown in the towel – but others stand to lose even more money if the deal collapses.

“There is no analysis you can do on this,” said one arb specialist. “You are in uncharted territory. I’ve seen a lot of legal work show one result and the same in-depth analysis shows a different outcome.”

Investors’ trades are not made public so it is not known which funds hold large positions or might face big losses, though many of the hedge fund industry’s biggest names have been closely following the transaction.

The strength of the commission’s objections to the UPS-TNT tie-up have surprised investors and the company’s executives, who had confidently predicted that the EU would grant approval in August after a fast-track investigation.

Brussels instead opened a full antitrust probe and concluded that the deal damaged competition in the cross-border express parcel market in 29 European Economic Area countries. Only in Liechtenstein was the combined group’s presence not harmful, according to people familiar with the Commission’s formal objections.

The fate of the deal rests on whether UPS can overturn some of Brussels’ key arguments – most importantly on the definition of the market – and shape a package of asset sell-offs that will address remaining concerns. Those people involved in the process do not expect the Commission’s analysis to change dramatically.

Several factors have driven interest from merger arbitrage hedge funds in the deal: the widely held view that UPS would win fast EU regulatory clearance, or at worst be asked to make piecemeal asset sales; UPS’s pledge to pay TNT a €200m termination fee if the deal fell through; and the relative scarcity of other mergers to speculate on.

[76-er]

So, it appears the EU will not approve the UPS-TNT takeover after all, according to dutch news this morning.

Now what for TNT-Airways? Does this influence the ASL-deal at all?

[loulou]

ASL deal won't realise as it was conditioned by the sale of the TNT express group to UPS.
TNT airways will remain part of TNT as it has always been.

By the way, wise decision of the EC, by blocking this sale this will preserve a lot of jobs in Europe within the TNT group.
Nice to see a strong reaction of the EC against the ultraliberalism from the US where the stock market seems to rules the business

[Oubi]

actually UPS withdraws anticipating UE decision and will pay 200 millions € to TNT.

[edie]

TNT shares are tanking TNTE.AS: Summary for TNT EXPRESS - Yahoo! Finance (http://finance.yahoo.com/q?s=TNTE.AS&ql=0)

Down 41% makes you wonder what TNT's future looks like. Time for FedEx to make a move? PostNL dumping too PNL.AS: Summary for POSTNL- Yahoo! Finance (http://finance.yahoo.com/q?s=PNL.AS%2C+&ql=0)

UPS $6.9 billion TNT Express takeover falls apart - Yahoo! Finance (http://finance.yahoo.com/news/ups-6-9-billion-tnt-084540748.html)

UPS $6.9 billion TNT Express takeover falls apart
UPS walks away from $6.9 billion takeover of TNT Express; TNT shares plummet 50 percent

AMSTERDAM (AP) -- United Parcel Service Inc. has ditched its €5.2 billion ($6.9 billion) takeover of TNT Express NV after learning that European regulators would reject the deal in its current form.

Though TNT will receive a €200 million ($265.5 million) break fee, it faces an uncertain future on its own and nearly €2 billion has been wiped off its share price in Monday trading in Amsterdam. At one point, its shares plunged by 50 percent before recovering somewhat to be trading 42 percent lower at €4.762.

UPS had offered to buy struggling TNT, Europe's second-largest delivery company, in March, to better compete with Europe's largest, Deutsche Post's DHL. But regulators said in October that the deal would lead to over-concentration in the sector.

In response, UPS offered to sell parts of the company's small package operations and airline assets. But after meeting with regulators Jan. 11, UPS told TNT it saw no prospect of the deal being approved — and it wasn't interested in further concessions.

In its last earnings report, for the third quarter of 2012, TNT lost €3 million on sales of €1.8 billion. Former CEO Marie-Christine Lombard quit the company in September, mid-takeover, in a move that was criticized as "unethical" by TNT's chairman, Antony Bergmans, and interpreted by some as a sign the deal was in trouble, since she stood to gain a €2.6 million bonus for seeing it through to completion.

She was replaced on an interim basis by CFO Bernard Bot.

In a statement, TNT conceded that the "protracted merger process has been a distraction for management" and that it would now focus on reassuring customers, encouraging employees and making money.

"Management will provide an update on its strategy in due course," the company said.

UPS CEO Scott Davis said he was "extremely disappointed" with the stance taken by regulators on what would have been his company's largest-ever acquisition.

"We proposed significant and tangible remedies designed to address the European Commission's concerns with the transaction," he said, adding that the deal would have benefited customers worldwide and supported economic growth "particularly in Europe."

The European Commission, which would not comment, must publish its review of the deal by Feb. 5. The Commission reviews major corporate mergers and acquisitions to ensure they do not hurt fair competition in the market. It has the power to block deals or to demand concessions, such as the sale of business parts, to safeguard market balance.

Before UPS's bid for TNT Express, some analysts thought rival FedEx Corp. might make a bid for the company, but FedEx executives said in March they had no plans to do so.

SNS Securities analyst Geert Steens said European regulators have signaled they would not view a takeover by FedEx or — less likely— DPD, a unit of France's La Poste, as problematic. But there is little guarantee either will bid for TNT in the current climate.

Steens said TNT is worth around €4 per share as an independent company, but that its largest shareholder — the former Dutch national mail company PostNL — will likely keep angling for a takeover as it needs to cut its debt.

Shares of PostNL fell 34 percent to €1.88.

TNT's assets in Asia and Latin America are part of the reason for its attractiveness as a takeover target, but the company's Brazilian operations ran into severe problems in 2010-2011 and were still loss-making in the third quarter of 2012.

[757DRIVER]

Surely DHL will buy TNT, an unmissable opportunity for a EUROPEAN company!:O

[edie]

Logistics Markets: Express & Mail (http://www.transportintelligence.com/content/logistics-markets/express/)

UPS/TNT decision "a blow to free markets"
14/Jan/2013 by Thomas Cullen.

The lack of clarity over the future of TNT Express, UPS in Europe or indeed the European express market appears to owe much to the European Commission (EC) following its decision to prohibit the proposed acquisition of TNT Express by UPS.

What appeared to be a straight-forward – if rather large – deal to acquire TNT Express was made much more complicated by the behaviour of the European competition authorities, not least in the nature of their communications. That UPS has abandoned the bid, despite the hurdle of a €200m termination fee, illustrates the magnitude of the obstacles that UPS perceived it was faced with to make the takeover work.

The pivot of the negotiations revolved around the competition authorities of the European Commission. The logic of its objections appeared to focus on the number of competitors in the marketplace. The Commission hinted that the removal of TNT Express would reduce the level of competition in the express parcel market. In suggesting remedies for this problem, they were drawn into dismembering the TNT and UPS network, a task which was doomed to fail as such assets are only worth anything as part of a network. It was unclear if the EC truly grasped this point. It was also unclear if they fully understood the complexities of express market, composed of several different markets with only limited interdependence. All of this was compounded by poor communication and a severe lack of transparency.

Joel Ray, Head of Consultancy at Transport Intelligence, commented: "It is hard to see what the EC sought to achieve through the negative stance they took to this deal. Their decision making process looks flawed, caused by a fundamental lack of understanding of the industry. It seems to have been driven by a desire to engineer a market structure through political motivations. European shippers would have gained from the acquisition through a strong new road and air based player. This decision has set the market back many years, and risks reducing competition, not increasing it."

Of the main market players, TNT Express is now in the most uncomfortable position. The company stated today that it will concentrate on the "execution of strategy". However, it has tacitly admitted that its businesses outside Europe have poor prospects and its core European business will have to work hard just to sustain its already squeezed margins. Normally it might be suggested that TNT Express would be vulnerable to takeover, however for TNT Express the problem is the reverse. What investor or trade buyer would want the company now?

One possible candidate would be FedEx. It may be quietly happy that its rival's strategy has been frustrated, yet the prospects of a bid for TNT Express, possibly at a lower price than that of UPS, might also seem obstructed by the same logic that terminated the UPS offer.

UPS, in contrast, has received a set-back to its corporate strategy, although it is hardly a serious one. The company has huge financial fire power and will be able to consider alternative acquisitions in Europe should it wish to do so. Assuming this is regarded as a worthwhile prospect, the potential targets include GLS, which has a smaller, yet not dissimilar, road network to TNT Express. Yet, some people at UPS may be regarding the failure of the bid a relief, with middle management in Atlanta and elsewhere nervous about the prospect of integrating TNT Express.
The European express market is now left with a series of smaller, comparatively weak players, two strong yet frustrated players in FedEx and UPS and a very powerful pan-European and intercontinental competitor in the form of DHL. Indeed it is DHL which is probably the big winner out of this. The prospect of UPS creating a strong capability in DHL's home market can never have been welcome and now it appears to have gone for good.

[Iver]

Interesting news. I realise the situation is fluid and there are probably many unanswered questions. One question I have: how was a successful merger with UPS expected to impact TNT pilots (especially longhaul drivers of the 744F and 777F given UPS's existing huge longhaul fleet)? Were significant pilot redundancies expected?

Good luck to all involved!

[BrowntailWhale]

Euro arrogance rears it's ugly head again. This will end up costing Euro jobs as TNT dies a slow death. I say good riddance and let TNT die, then we can come in an pick up the pieces for pennies on the dollar. Or maybe that was UPS' plan all along. Maybe they knew the Eurotrash Commission would never approve the deal, but it allowed UPS to look deep into TNT's books and gather invaluable inside information. Now they back off and put pressure back on the EU to approve or watch TNT die and all those jobs go away.

[edie]

Does not appear to be an option

Deutsche Post not interested in TNT Express: CFO - Yahoo! Finance (http://finance.yahoo.com/news/deutsche-post-not-interested-tnt-150845031.html)

NEW YORK (Reuters) - Germany's Deutsche Post (DPW.DE) is not interested bidding for TNT Express (TNTE.AS) after UPS (UPS) said it was dropping its 5.2 billion euro bid for the Dutch delivery firm, its finance chief said.

"We're pursuing an organic growth strategy, so we are not interested in acquisitions of any kind in the express business, including TNT," he told Reuters in an interview on Monday.

[Oubi]

Hum Browntailwhite... who's arrogant ???

[Nopax,thanx]

So where does this leave the sale of Pan Air and TAY to Air Contractors? Is that all in the dustbin now the the UPS/TNT deal has fallen through?

[ATNotts]

BrowntailWhale

I guess your rant against the EU Commission and their stance on the merger can be explained by your username!!

There has been too much consolidation in the European package market already. If the merger had gone through it would have left just UPS and DHL in a market bigger than the US and Canada; and the result would have been increased rates for users all round - not to mention hundreds, probably thousands across Europe thrown out of work.

Well done the EU for having the courage that many national governments lack.

[edie]

HEARD ON THE STREET: Failed UPS Delivery Leaves TNT in Lurch - WSJ.com (http://online.wsj.com/article/SB10001424127887324595704578241651997163678.html)

Returned to sender. United Parcel Services UPS +1.44% has abandoned its plan to buy TNT Express TNTE.AE -41.30% for $6.8 billion, thanks to objections from the European Commission's competition authorities. The commission was demanding concessions including selling assets to build up another freight rival, making an already expensive-looking deal unviable: UPS will now pay a €200 million ($266.9 million) break fee to TNT. That is small comfort for the Dutch company, whose shares plunged 43% on Monday. Unless TNT can quickly find a convincing new strategy, there could be more falls to come.

UPS CEO Scott Davis discusses the planned merger between UPS and TNT Express in Amsterdam on March 19, 2012.

The commission's deal rejection might seem shortsighted: Europe's sluggish economy is in need of inward investment. But the regulator was worried the deal would reduce the number of major companies offering both air and ground parcel deliveries in Europe from four to three: DHL, UPS/TNT and FedEx FDX +0.68% . UPS had agreed this month to sell some assets to help build up a potential fourth rival, France's DPD. Even so, the commission remained unconvinced DPD would have the capacity to be a major competitor.

Cutting its losses after nine months of negotiation seems sensible for UPS. Its €9.50-a-share offer was already a near-50% premium to TNT's pre-deal share price: UPS shares rose 1.6% in early trading. The real problems lie with TNT. Led by interim Chief Executive Bernard Bot, the company has delayed plans to cut costs and find partners for its ailing Brazilian and Chinese businesses, pending the UPS tie-up. Its operating income fell by 26% in the first nine months of 2012. Lower prices have put pressure on its European business, where it makes two-thirds of its revenue.

An alternative bidder seems unlikely. FedEx is going through its own cost-saving program and may not want to run the commission's competition gauntlet. That leaves more potential downside for TNT. Analysts have been slow to update earnings forecasts for TNT given little company guidance: Its earnings per share could be €0.18 in 2013, compared with the current consensus at €0.32, RBC Capital Markets says. At a 14 times earnings multiple, in line with its peers, that would value TNT at around €2.50, a further 47% fall. That isn't the kind of parcel investors like to find on their doormats.

[JW411]

I'm afraid it's not arrogance it's ignorance.

[WhaleDriver]

I'm afraid it's not arrogance it's ignorance.

We'll see which one it is if TNT is even still around a year from now and see about how many jobs are REALLY lost. Time will tell.

[loulou]

Thanks EU for their right decision (at least one), it's not because that we go trough tuff times that we should be on the shopping list of major foreign companies.

Anyway UPS would had vampirised TNT with huge job losses, now TNT will be a stand alone but I am sure it will go trough as it always did.

At least this UPS/TNT novel raised some questions, now the EU pilots union informed the EC that Fedex and UPS are taking too many advantages of their traffic rights in Europe with their own aircrafts based in Europe, that will be the next issue on the EC table

Finally it would have been a shame to see TNT planes painted into poo brown colour

[Skystar02]

In my opinion TNT must grow and change its mentality, offering products to customers that never wanted because they were out of their core business. Otherwise will be very difficult for them. Last CEO Mrs. Marie-Christine Lombard did things well in long term thinking and that idea should be re-considered now. In fact, UPS wanted their business in South America and China.

Also they should update their actual air fleet. Will be phased out soon and is not very efficient. Too many AOGs and poorly managed.

Regards!

[edie]

There's "Definitely Life after UPS for TNT" - Barrons.com (http://online.barrons.com/article/SB50001424052748703596604578235782597170420.html?mod=BOL_twm _mw#articleTabs_article%3D1)

Although an offer from FedEx is unlikely, some analysts see Dutch parcel-delivery outfit TNT eventually doing well on its own.

Investors in Dutch parcel-delivery company TNT Express had a tough start to the week when United Parcel Service pulled its 5.2 billion euro ($7 billion) yearlong bid for the company, causing TNT shares to plunge 41% by Monday's market close.

The good news is that it could now be an opportune time to buy TNT stock (ticker: TNTE.Netherlands). With the UPS (UPS) takeover premium gone, investors are left wondering what TNT will do next. Some fund managers and analysts say the company could do quite a lot.

Says Daniel Pasini, a portfolio manager with London-based ACPI Investment Managers: "The market in Europe will continue to be challenging, but given [TNT's] exposure to Asia Pacific and Brazil, the overall market situation, long term, is not too bad."

He views TNT stock as undervalued and expects it to trade near its pre-UPS-bid level for now. "Once operations in emerging markets start to turn around, upside should be more meaningful." he adds.

Several other analysts share Pasini's view. Some were penning upgrades even before the dust settled on UPS's surprise withdrawal, born of delays due to European regulators' antitrust concerns.

TNT CAN NOW IMPLEMENT a strategic plan it put on hold nearly a year ago when UPS made its approach. To show it can survive independently, TNT promises to refocus on its core European business. It also plans to review its operations in emerging markets, such as China and Brazil, part of an expansion plan that had upset some shareholders.

Third-quarter operating income rose in TNT's Asia-Pacific region, despite faltering demand in some countries there. Its Brazilian business remains in the red, but isn't an obvious disposal candidate. Analysts say TNT's leading 20% market share in Brazil means that earnings eventually could be strong there.

The Dutch company sold its Indian business a couple of months before UPS made its bid. But shareholders had wanted more. They had been putting TNT under pressure to make strategic changes or consider being sold months before the UPS bid.

The resumed strategy includes €150 million in cost cuts by 2013. This has led Rabobank analyst Philip Scholte to raise his rating on the stock to Buy from Hold, even though he cut his price target, from €9.50 to €6.00. The stock has been trading below €6. His rationale: "We believe this huge savings target can provide ample compensation for a weak European economy."

TNT was spun off from Dutch mail company PostNL (PNLYY) in 2011, but it suffered a series of profit warnings as loss-making emerging-markets businesses dented its European earnings.

Kepler Capital Markets analyst Andre Mulder cut his TNT price target to €6.50 from €7 following the UPS withdrawal, but he sees upside potential of 30%. He argues that there is "definitely life after UPS for TNT."

TNT's big strength is in Europe, where its operations account for around 60% of its overall sales. Despite its current troubles, the European market is growing by up to 5% a year, Mulder says. That compares with a mature U.S. market, which is static at best and could even be shrinking. He reckons that the Dutch delivery company's profit margin in Europe, before interest and taxes, could rise over time to 10% from around 6%-7% now.

The European market's allure has prompted speculation that FedEx (FDX) could step in to buy TNT, particularly as the collapsed deal means that TNT remains the smallest of the world's main express-delivery companies. However, ACPI's Pasini says FedEx is unlikely to make a bid, as it could suffer the same antitrust concerns that finished off the UPS offer. And FedEx has been growing satisfactorily in Europe without acquisitions.

PERHAPS HARDEST HIT by the failed UPS bid is PostNL, which still owns a hefty 30% of TNT. Its stock slid almost 36% on the day the UPS pullout was announced. Pasini warns that PostNL doesn't have enough cash flow from operations to cover debt coming due in 2015. "The underlying business is not attractive, as mail volumes continue to have negative growth," the analyst adds. "Over all, this stock will behave like TNT. If TNT goes up, Post should move higher with a higher beta."

On the downside, the stock overhang from the PostNL stake, which it said it now plans to "monetize"—meaning sell—over the medium term, could take some of the shine off TNT stock for now.

TNT closed at €5.46 Friday, down almost 34% on the week, while PostNL fell just over 37% in the same period to end at €1.78.

[edie]

Not really a surprise here...maybe they can shrink to profitability?

TNT Express reports further loss, plans disposals - Yahoo! Finance (http://finance.yahoo.com/news/tnt-express-reports-q4-loss-074257680.html)

TNT Express reports further loss, plans disposals

By Sara Webb

AMSTERDAM (Reuters) - TNT Express (TNTE.AS), whose $7 billion takeover by United Parcel Service (UPS) was blocked last month, reported a fourth-quarter loss on Monday and said it was looking to sell troubled businesses in Brazil and China.

The collapse of the UPS deal leaves the Dutch express delivery firm having to confront a weak European market on its own.

It reported a net loss for the final quarter of 2012 of 148 million euros ($197.59 million), down from a loss of 173 million euros a year ago on flat revenue of 1.86 billion euros, while analysts had on average forecast a net profit of 32.2 million euros on revenue of 1.886 billion euros.

The shares were down 1 percent after the results at 5.49 euros.

"There are many positive actions we can take to improve profitability and we look forward to providing a full update on 25 March," Bernard Bot, interim chief executive, said in a statement.

He also said the company was looking to make disposals abroad.

"Divestment opportunities for our domestic activities in Brazil and China are being secured," he said, adding that the outcome for China would be known soon.

TNT Express faces an uncertain future. It has cut capacity in Europe because of weak demand, was hit by restructuring problems in Brazil, and is seen as a minor player in China. Its chief executive quit soon after UPS made its offer in March 2012.

TNT Express was partially split from Dutch postal operator PostNL (PTNL.AS) in May 2011 in an attempt to profit from express operations as traditional mail business declines.

But its weak performance quickly prompted activist shareholders to call for a management shake-up or an outright sale, pushing TNT Express into the arms of UPS only to have EU competition regulators block the marriage.

The Dutch firm, which received a 200 million euro break-up fee from UPS this month, said on Monday it took 120 million euros in one-off charges and impairments, mainly on its domestic China and India businesses, and on the value of its freight aircraft. ($1=0.7490 euros)

[edie]

TNT may sell aircraft, cut jobs after UPS deal failure | AviationBrief – Your Daily Aviation Intelligence Brief (http://www.aviationbrief.com/?p=11570)

TNT is considering cutting its headcount and selling some of its long-haul fleet after the European Commission blocked its planned tie-up with United Parcel Service (UPS) .

Speaking at the release of the company’s full-year results, interim CEO Bernard Bot said TNT Express is now “looking firmly at a standalone future.” However, he added that “trading conditions remain difficult” and TNT Express now needs to press ahead with “a number of actions which were suspended because of the UPS offer.”

He added that TNT Express will detail its new strategy March 25. “We are clearly aware that further urgent improvements are required,” Bot said. “This will be more comprehensive than just cost measures. We will be looking at the company as a whole.”

Under the revamp, TNT Express will divest its domestic businesses in Brazil and China, although its international activities to these countries will continue.

Job reductions will “more than likely” also form part of the measures. “We have to restructure our operating and overhead levels. That will impact staff, but I don’t want to conjecture too much here and now when plans have not finalized,” Bot said.

TNT Express is also reassessing “structural solutions for its air capacity,” after plans to sell some of its long-haul fleet were put on hold during the UPS talks.

“We have three Boeing 777s and two 747s. One of our 747s is semi-grounded, operating one rotation per week into China. This is not a situation we are comfortable with,” Bot said. “We are looking at various alternatives to reduce the fleet. The 747s may be the first target, but we will be looking at the 747 and 777 fleet as a whole to see what we can do to reduce capacity. We don’t need that many aircraft.”

TNT Express’ two airlines TNT Airways and Spanish carrier Pan Air may also come under scrutiny during the review, according to interim CFO Jeroen Seyger. TNT Express struck a deal to sell the airlines to Air Contractors parent ASL Aviation, conditional on the UPS deal.

“This was a conditional sale related to the UPS transaction because they could not be owned by a non-European legal entity,” Seyger said. “That doesn’t mean we would exclude any option in the future, but it is not as straightforward as it was at the time when we were pursuing the merger with UPS.”

TNT Express’ adjusted full-year revenues fell by 1.7% to €7.1 billion ($ 9.5 billion) in 2012, while its adjusted operating income for the year decreased 16.4% to €188 million.

[main_dog]

We have three Boeing 777s and two 747s. One of our 747s is semi-grounded, operating one rotation per week into China. This is not a situation we are comfortable with,” Bot said. “We are looking at various alternatives to reduce the fleet.

This being the case, any idea why they appear to be looking for B744 captains (through PARC)?

MD