UPS Airlines

UPS takes long view of Europe in making its long-awaited run at TNT

UPS believes now is the time to seize an opportunity to buy TNT Express to significantly bolster its competitive stance in Europe. UPS assures despite Europe’s shaky economic state, the continent is a growth vehicle for the company, and believes it can capitalise on TNT’s vast European road network. UPS also gains key access to the powerhouse of Brazil, and remains confident of TNT’s success in turning around its operations in the country.

The proposed USD6.8 billion purchase of TNT by UPS is the largest acquisition in its 105-year history, and pairs well the recent investments UPS has made in expanding its Worldport hub in Louisville, Kentucky; completing a USD200 million expansion project at is Cologne, Germany hub set for completion in 2013; the 2010 opening of its intra-Asia hub in Shenzhen and the 2008 opening of its Shanghai hub, UPS CEO Scott Davis tells investors. TNT Express’s air hub is located at Liege, Belgium.

Airlines and airports feeling impact of global economic weakness with continued freight pressures

Airlines and airports are feeling the impact of the current global economic weakness and declining consumer spending in Europe, which is having a noticeable impact on air cargo volumes. Cargo traffic, which generated USD66 billion in revenue in 2010, has declined every month since May-2011, according to IATA upon the release of its Oct-2011 traffic results, with a 4.7% year-on-year reduction in cargo demand in Oct-2011 amid reduced manufacturing confidence and businesses switching to slower modes of transport.

“Cargo is the story of the month. Since mid-year the market has shrunk by almost 5% and this is far greater than the 1% fall in world trade. Air freight is among the first sectors to suffer when businesses confidence declines,” IATA director general and CEO Tony Tyler said. Meanwhile, Boeing CEO Jim McNerney separately stated the company has seen a softening of freight demand in recent months, describing the freight market as a “watch item”.

Delta now world’s largest carrier; Ryanair stays top international airline

Delta Air Lines became the world's largest carrier by traffic in 2010, according to IATA, with Southwest Airlines remaining the largest domestic carrier and Ryanair still the largest international carrier by passengers. Delta’s consolidation with Northwest Airlines boosted Delta past Southwest and American Airlines based on combined international and domestic passenger numbers.

Emirates to buy manufacturer Airbus. Boeing may also be target. It could be true ...

EMIRATES AIRLINE HAS ANNOUNCED PLANS TO BUY European aircraft manufacturer Airbus. A spokesman for the Gulf carrier, which boasts a massive order book with Airbus of more than 90 A380s and 70 A350s, said: “We believe this will be a sound move for all concerned."