The Netherlands-based TNT Express announced it would sell TNT Airways and Pan Air Lineas Areas to the ASL Aviation Group as soon as the proposed United Parcel Service (UPS)-TNT Express merger is completed.
“This change of ownership and control will ensure service continuity of the TNT Express operations after the completion of the proposed merger, in compliance with EU airline ownership and control rules,” TNT Express said in a press statement.
Bernard Bot, interim chief executive officer of TNT Express, said the conditional sale is “an important step towards completion of the proposed UPS-TNT Express merger and a positive outcome for the airline employees.”
ASL Aviation Group is an established European group of aviation companies, which currently includes three airlines, two support services companies, and various leasing entities. It holds a European air operator license, and owns and operates a fleet of about 90 aircraft for freight and passenger services.
If the conditional sale takes place, ASL Aviation will take over all flights performed by TNT Express’ airlines, maintain the TNT Airways headquarters in Liege, and retain almost all of the employees of the airlines, the statement said. It will also serve as a key third-party provider of the UPS-TNT Express group.
In March this year, UPS agreed to purchase TNT Express for EUR5.16 billion ($6.77 billion). The buy-out of Europe’s second largest package delivery service by the world’s biggest would pave the way for greater access by UPS in the European market.
But approval by the European Commission of the proposed merger has dragged, as the EC continues its thorough review of the plan amid worries of antitrust violations. The acquisition will reduce to three the top four players in the European express delivery sector. The two others are DHL Express and FedEx Express.
Photo courtesy of TNT Express
