Turns out the long-discussed rumors were true. Ireland-based ASL Aviation Group has indeed agreed to purchase airline operations currently owned by TNT Express and will continue to operate them on behalf of the merged FedEx-TNT entity, according to a Reuters report.
The deal was struck as part of the ongoing FedEx-TNT acquisition process, which is contingent upon the sale of TNT Express’ two air carriers – TNT Airlines and Spain-based Pan Air Lineas Aereas – in order to conform with European restrictions on airline ownership. Under EU rules, foreign investors cannot own more than 49 percent of a European airline, and control of the company must remain in EU hands.
ASL is a global cargo, passenger and leasing company, which will continue to operate flights for TNT following its acquisition by FedEx under a multi-year service agreement. Its fleet will grow from 90 to 130 aircraft after the sale. ASL acquired Farnair last year, and rebranded all four of its carriers, which are now called ASL France, ASL Ireland, ASL Airlines Switzerland and ASL Hungary (formerly Farnair).
With a European market share of 17 percent, the combined FedEx-TNT will be Europe’s second-biggest delivery services business, behind Deutsche Post’s DHL, but ahead of UPS. The deal also strengthens FedEx’s position as the world’s number-three integrator.
FedEx and TNT Express have obtained unconditional approval from the European Commission, Brazil and the United States for their proposed merger, but are still waiting for China’s blessing. The FedEx-TNT merger is expected to close by the middle of this year.
For a more detailed analysis on how the purchase will affect ASL’s operations, please see David Harris’ article in our sister publication, Cargo Facts.