MIAMI – The acquisition of TNT (3V) by FedEx (FX), approved by the EU Commission, and the integration of its network, has created redundancies both in its operational and administrative personnel.
According to Aerotime, such redundancy has pushed the cargo carrier to cut into its workforce by as much as 6,300. This situation arises from the dual hub system that FX now has in Europe following the 3V acquisition. At present, FX has a main hub in Charles de Gaulle Airport (CDG) and a second one at Liege Airport (LGG), Belgium.
ASL Airlines Belgium, formerly TNT Airways, is a Belgian cargo airline that primarily flies chartered flights across Europe. Its headquarters and hub are located on the grounds of LGG. The airline was formerly a subsidiary of TNT Express, but in 2016 it was sold to ASL Airlines Ireland and rebranded.
Organization from across the Pond
To avoid duplications, FedEx plans to organize its European hubs on the US model, where it has its main hub in Memphis (MEM), TN, and a secondary one in Indianapolis (IND), IN, with very satisfactory results. As a result, with the new organization, CDG would become FX’s universal hub in Europe while LGG would take the role of FX’s secondary hub.
As stated by Ch-Aviation, this action has taken all FX partners at LGG by surprise, particularly the Airport Management, since FX represents almost 50% of total cargo operations and the downgrading as a secondary hub would result in a decrease of about 70% of traffic.
Comments from FedEx Europe, LGG
FedEx Express Europe Chief Operating Officer Dave Canavan commented on the move by saying, “Moving towards a dual-hub model is a strategic advantage for us: improving the competitiveness of our Express business, providing us flexibility, and enhancing our growth opportunities.”
LGG Airport Managing Director, Luc Partoune commented on the announced changes by stating “We were amazed that, without any prior consultation, FedEx decided to restructure its activities and position Liège Airport as a secondary hub.”
Featured image: Ryan Scottini/Airways