FedEx to cut capacity to/from Asia as profits decline

To Night Watchman:

True, but still FedEx is known for its pragmatic and sound decsions. I'm sure if FedEx waited a little longer to cut capacity from Asia/Pacific region, there must be some other valid reasons to do so.

Pragmatic as ever, Fedex are moving to eradicate, neutralise or limit the negative impacts of the slightly-too-long stay in Asia (at this stage), where they have cut back.

On their home turf, ostensibly, they have moved onto the front foot, via an agreement reportedly concluded, on March 08 (several sources can, apparently confirm ; I picked this up in Flight International), with “United Continental”, from whom Fedex would be positioned to acquire some 30 x B757-200's.

Deliveries of these aircraft would start during 2013.
The deal is said to cover, initially, the purchase of 14 units by FedEx.
These would be converted to freighters upon delivery, according to a regulatory filing, made by Fedex, in the wake of the above-mentioned agreement of March 08, 2013, of which prior announcement had, allegedly, been filed in February, 2013.

These deliveries are currently planned to continue into 2015.
Reportedly, FedEx adds that this agreement will also cover the purchase of up to 16 additional 757s. This extension is said to be "subject to the satisfaction of certain conditions".
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At the end 2012, United Continental Holdings’ combined fleet comprised, ‘inter alia’, 154 Boeing 757s, of which 133 were the -200‘s. United Continental owns 47 of these 757-200’s and leases the rest.

Both P&W & RR equip this B757 fleet.

In line with recent second-hand B757-200’s, Fedex is said to be targeting those aircraft that are powered by RR RB211-535-E4, which, as proved historically by all users, are the more reliable option, with far higher TOW and efficiency retention, which reduces substantially maintenance costs.
Here, the savings considerably outweigh a marginally better fuel-consumption (in favour of P&W) at the beginning of a “post-maintenance cycle”, such advantage being eroded by the performance retention of the RR engine, in relation to that of the PW 2000 series power-plants.

UPS can readily vouch for this, too, as their B757-200 fleet is mixed as between RR & P&W engines. UPS turned to RR for their second batch of B757-200 aircraft, and to-day have a slightly larger RR-powered component in that fleet.