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FedEx, UPS May Follow Deutsche Post DHL’s Fleet Model, HSBC Says 2013-10-16 12:48:00.986 GMT
By Richard Weiss Oct. 16 (Bloomberg) -- DHL fleet model allows for control while maintaining flexibility, HSBC analysts including Julia Winarso say in note to clients. * FedEx will continue to reduce intercontintal network, rely more on partner airlines: HSBC * FedEx operates fleet of 647 aircraft, UPS 531, DHL 260 * DHL fleet consists of “virtual network” of wet leases, blocked space agreements and JVs: HSBC * DHL model has lower operating leverage * DHL’s wet leases are more expensive than plane ownership * Says FedEx, UPS fleet models will converge to become more like that of DHL * TNT Express will find it too difficult, costly to build out intercontinental fleet of 5 planes; will shrink or divest * NOTE: TNT Disadvantaged, DHL Best Placed in Express/Parcels; raises Deutsche Post to neutral, TNT cut to underweight: HSBC
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--Editor: Jurjen van de Pol
To contact the reporter on this story: Richard Weiss in Frankfurt at +49-69-92041-287 or rweiss5@bloomberg.net
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