Taking a step forward in expanding its global services in Eastern Europe, FedEx Express will acquire Flying-Cargo Hungary Kft. Privately held, the Hungarian company has partnered with FedEx since 2003. Although there will be no change in the ordinary operations of the company, Flying-Cargo will be a wholly-owned FedEx operation. “Hungary continues to rise in importance within the European Union,” notes Michael Mühlberger, vice president Operations, FedEx Express Central & Eastern Europe. “With this acquisition, FedEx will be able to invest more effectively and directly in Hungary and ensure we remain well-positioned to provide an unmatched customer experience.”
Two leading truckload carriers that haul a wide range of freight across the country will be joining forces as Nashville, Tenn.-headquartered Western Express, Inc. acquires Smithway Motor Xpress Corp. of Ford Dodge, Iowa. The companies have particular strength in dry van and flatbed operations that will be enhanced through the transaction. The deal is expected to be concluded this summer. When the dust settles, the combined company fleet will include 1,600 tractors in dry van operations and 1,400 flatbed units.
Newgistics Inc. of Austin, Tex. offers returns management solutions. Its best known product is the SmartLabel that provides real-time data on the status and location of each of its packages. The company has acquired Logistics Management, Inc. (LMI) of Mississauga, Ont. LMI provides transportation brokerage services that are optimized for less than truckload (LTL) shipping. Bill Razzouck, Newgistics CEO, says that with the acquisition the unified company “will be positioned to offer our customers a streamlined, centralized solution that combines the proven technology of Newgistics' SmartLabel with LMI's inbound and outbound LTL transportation management capabilities.”
A parent is buying a parent as the company that owns ATA Airlines, Global Aero Logistics Inc., acquires World Air Holdings Inc. for $315 million. World Air Holdings is the parent company of World Airways Inc. and North American Airlines Inc. The transaction is expected to be completed in the third quarter of the year at which time the carriers will be run as three separate airlines. Operating out of Oakland, Calif., North American Airlines is a small carrier that is reported to have 10 planes. World Airways has 17 wide body aircraft used for charters. ATA is the country's largest military charter airlines. It also offers service to Hawaii, including cargo business, under a code sharing alliance with Southwest Airlines. ATA is the only carrier with direct service from the U.S. Mainland to Hilo.
