STARTED OPERATIONS IN 1988. FULL NAME: PAN AIR LINEAS AEREAS. SCHEDULED AND CHARTER, DOMESTIC, REGIONAL, AND INTERNATIONAL, CARGO, JET AIRPLANE OPERATIONS FOR TNT EXPRESS (TNB) EUROPEAN NETWORK.
EDIFICIO TNT-2A PLANTA
AVENIDA CENTRAL-PARCELA 1.5 B5
E-28042 MADRID, SPAIN
MAIN BASE: CENTRO DE CARGA AEREA, MADRID (BARAJAS).
PARENT COMPANY: TNT AIRWAYS (TNT) (100%).
April 2006: Pan Air (PNZ) operates jet airplane services on the TNT Express (TNB) European Network.
Parent organization/shareholders: TNT Express (TNB) Spain (100%).
Employees = 196 (including 57 Flight Crew (FC); 110 Cabin Attendants (CA); & 29 Maintenance Technicians (MT)).
(IATA) Code: PV. (ICAO) Code: PNR - (Callsign - SKYJET).
Main Base: Madrid Barajas (MAD).
Hubs: Valencia (VLC); Zaragoza (ZAZ); Vitoria International (VIT); Barcelona (BCN); & Seville (SVQ).
November 2012: (TNT) Express has agreed to sell its two airlines to the (ASL) Aviation Group to overcome ownership restrictions triggered by its planned merger with (UPS).
(ASL) Aviation is parent to Irish cargo airline Air Contractors (HCA) as well as French passenger and cargo operation Europe Airpost (EUE). Under the deal, (ASL) will acquire 100% of TNT Airways (TNB)) and Spanish carrier Pan Air (PNZ) just before (UPS) and (TNT) merge. “We have found a new ownership and control structure that secures the future of the airlines, ensures service continuity and safeguards TNT Express jobs in Liege. This is an important step towards completion of the proposed (UPS) - (TNT) Express merger and a positive outcome for the airline employees,” interim (CEO), Bernard Bot said.
The sale of the two airlines is conditional on (UPS) and (TNT) gaining regulatory approval for their tie-up. Once the deal is completed, (ASL) will take over all flights performed by TNT Express’ airlines and it will act as a third-party provider to the combined (UPS) - (TNT) Express group.
Although the majority of staff will be transferred, a few will return to (TNT) Express’ Liege hub. (TNT) Express said (ASL) plans to maintain (TNB)’s Liege headquarters and it does not expect the change of ownership to impact activities at Liege for “at least one year.”
(ASL) Aviation Group (CEO), Hugh Flynn said the deal will give (ASL) new growth opportunities. ASL (which is 51% owned by Compagnie Maritime Belge and 49% by 3P Air Freighters) employs 1,200 staff and has a fleet of around 90 passenger and freight airplanes. In 2011, it generated a €410 million/$523 million turnover.
Beyond (HCA) and (EUE), the (ASL) Aviation Group also includes leasing companies (ACL) Aviation, (ACL) Leasing and (ACL) Air, plus support businesses (ACL) Aviation Support, Air Contractors Engineering and Air Contractors UK.
January 2013: European competition regulators have, as anticipated, blocked (UPS)'s acquisition of (TNT) Express, saying the deal could harm consumers.
“The (EC) found that the takeover would have restricted competition in 15 member states, when it comes to the express delivery of small packages to another European country. In these member states, the acquisition would have reduced the number of significant players to only three or two, leaving sometimes (DHL) as the only alternative to (UPS).”
(UPS) submitted three packages of remedies, in November, December and January, in a bid to secure competition clearance after receiving a statement of objections to the tie-up. It offered to sell (TNT) subsidiaries in the 15 problem countries: Bulgaria, the Czech Republic, Denmark, Estonia, Finland, Hungary, Latvia, Lithuania, Malta, the Netherlands, Poland, Romania, Slovakia, Slovenia, and Sweden. It was also willing to sell subsidiaries in Spain and Portugal to boost the scale of the disposal and give the buyer access to its intra-European air network for five years.
The remedies foundered because the number of would-be purchasers was “severely limited” and (UPS) failed to seal an agreement before the end of the (EC)’s investigation.
(EC) VP Competition, Joaquin Almunia said: “We worked hard with (UPS) on possible remedies until very late in the procedure, but what they offered was simply not enough to address the serious competition problems we identified.”
Almunia said businesses would have been “directly harmed” by the takeover, because it would “drastically” reduce choice and probably lead to price increases. There are only four integrators in Europe: (UPS), (TNT), (DHL), and FedEx (FED).
(UPS) said January 14 that it had already given up hope of securing competition clearance. (TNT) Express had agreed to sell its two airlines, (TNT) Airways (TNB) and Spanish carrier Pan Air (PNZ), to the (ASL) Aviation Group to overcome ownership restrictions triggered by the (UPS) merger. This was conditional on (UPS) securing approval to acquire (TNT) Express.
May 2015: B Ae 146-200 (E2086, EC-GQO), ferried to Summerside for water tanker conversion.
February 2016: The (ASL) Aviation Group has signed a conditional agreement to buy two cargo airlines owned by (TNT) Express (TNB), which is itself being acquired by FedEx (FED).
(TNT) Express (TNB) is being acquired by (FED) and, if the deal succeeds, (TNT)’s Belgian airline (TNT) Airways (TNB) and its Spanish carrier Pan Air Líneas Aéreas (PNZ) will have to be divested due to airline ownership regulations.
As reported by (ATW) last November, the (ASL) Aviation Group was always a likely candidate to acquire the two airlines. This is because the (ASL) Aviation Group was on track to acquire (TNT) Airways (TNB) and Pan Air (PNZ) in 2012, when United Parcel Service (UPS) launched a takeover bid for (TNT) Express. This deal ultimately failed on competition grounds, thwarting (ASL) Aviation’s plans to acquire the cargo carriers.
(TNT) Express said it has now agreed to sell (TNT) Airways (TNB) and Pan Air (PNZ) to (ASL) Aviation for an undisclosed sum. However, once again, this sub-deal is conditional on FedEx (FED)’s acquisition of (TNT) Express going ahead.
“The change of ownership and control of (TNT)’s airline operations will ensure continuity of service delivery as well as compliance with (EU) airline ownership and control rules. It is another step towards closing of the FedEx (FED) offer to acquire (TNT),” (TNT) Express said.
(ASL) Aviation (CEO), Hugh Flynn described the acquisition of (TNT) Airways and Pan Air (PNZ) as a “key strategic step” for his company’s growth, with (ASL) Aviation acting as a “neutral aviation services provider” for the FedEx (FED) - (TNT) combination.
Under the plan, (ASL) Aviation will take over (TNT) Airways and Pan Air Líneas Aéreas (PNZ)’s flights from the moment that the sale of (TNT) Express to FedEx (FED) is completed. (ASL) Aviation has signed a multi-year deal with (TNT) Express, where it will operate flights for the newly joined (FED) - (TNT).
“In anticipation for closing, we had to find a new owner for (TNT)’s airlines to comply with aviation regulations. With (ASL) Aviation Group, we have found an experienced aviation group that can meet the high service standards that we have implemented at (TNT) over the last two years,” (TNT) (CEO), Tex Gunning said. “Great progress is being made in planning the integration of FedEx (FED) and (TNT).”
This time, the upper level acquisition between (FED) and (TNT) Express seems to be proceeding more smoothly, with crucial competition clearances already secured from the (EU), Brazil and the USA. However, the Brazilian approval could still be appealed and a further clearance is required from China for the acquisition to go ahead. In a statement issued on February 2, (FED) and (TNT) Express said they are making progress and still expect to close the offer in the first half of 2016.
Upon completion, employees of (TNT) Airways and Pan Air (PNZ) will become part of (ASL) Aviation Group. (TNT) Airways’ headquarters in Liège will be retained. (TNT) Express’ Liège hub is not part of the sale and will be retained by (FED) - (TNT).
The (ASL) Aviation Group holds seven air operator’s certificates (AOCs) in Europe, Asia, and Africa. Its European airlines comprise Irish cargo specialist, Air Contractors (HCA) (recently re-branded as ASL Airlines Ireland), Europe Airpost (EUE) (ASL Airlines France), Farnair Switzerland (ASL Airlines Switzerland) and Farnair Hungary (ASL Airlines Hungary). It also has stakes in South Africa’s FlySafair (SFA), Thai freight carrier K-Mile (KMI) and India’s Quikjet Cargo Airlines.
The Irish firm owns and operates a fleet of around 100 aircraft, although this will grow to more than >130 following the acquisition.
The diverse company, which generated a €382 million turnover in 2015, also owns two support services companies and various leasing entities.