Qantas Gives Six Boeing 737 Freighters to Australia Post
2nd May 2016
As a part of AUS$500 million contract signed in 2015, Australian carrier Qantas has set aside six of its 14 freighters for Australia Post to use. That way, the half dozen Boeing 737s will from now on done StarTrack-branded livery.
The move will make it much easier for Australia Post to deal with an increase in demand by online shoppers, especially rural regions, where there are often no nearby shops.
Speaking about the deal, Qantas Chief Executive Officer Alan Joyce said:
"We have the flexibility and adaptability to grow with Australia Post and it could be a lot bigger than that. I hope for both of our sakes that it is."
Joyce also said Qantas intends to continue to be "aggressive and flexible and adaptable" when it comes to freight tenders in the domestic market. Qantas outbided rival Virgin Australia last year for the contract with Australia Post, effectively prompting VA to start its own freight business in July 2015.
"Freight yields go down every year in real terms and we know that is the reality of the aviation industry and we just have to make our business more and more efficient in order to make sure we make a profit amid those changing dynamics."
CEO of Australia Post Ahmed Fahour said the arrangement allows AP to set up its schedule any way it wants and cites an example:
"One of those as an example that we noticed is there was a lot more product available on Monday to send around than there is, say, on a Tuesday."
Fahour, who took the job at Australia Post back in 2010 also added:
"You can see a huge amount of growth opportunities for us. So we need a partner that has the balance sheet, the size and the interest to grow as we grow our business here in Australia and all over the world."
Between 6 and 7 per cent of Australia's retail sales are made online. While this is an increase compared to 2-3 per cent it was in 2010, Australia still trails significantly behind the United States, Great Britain, Germany and France, where this number is about 10-12 per cent.