Australia Post and Qantas Freight renew agreement to support e-commerce growth

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Australia Post and Qantas have expanded their domestic and international air freight agreement to support the growing demand for parcels.

The seven-year agreement – valued at over A$1bn (US$677m) – will give Australia Post customers access to Qantas Freight’s dedicated freighter aircraft and priority access to the cargo space on up to 1,500 Qantas and Jetstar passenger flights to over 110 destinations each day, in addition to space on partner airlines globally.

It will also see the introduction of up to three Airbus A321P2Fs (Passenger to Freighter) to the freighter network used for Australia Post. Qantas will be the first airline in the world to operate the A321 as a freighter aircraft.

Each A321P2F will add nearly 50% more capacity – an additional nine metric tons – compared with the existing Boeing 737 freighters, with the first A321P2F due to enter the fleet in October 2020.

Christine Holgate, CEO and managing director, Australia Post, said, “Australia Post plays a critical role connecting Australian businesses and communities to each other and the rest of the world, and with the continued growth in online shopping, we can now take it to new heights.

“This agreement will further boost our unrivaled, dedicated air freighter network with newer aircraft and more capacity right up until the opening of the new Western Sydney Airport in 2026.

“The enhanced air freighter network complements A$900m [US$610m] in investment across our network through automation and infrastructure, and provides the speed, flexibility and reliability customers expect.

“It means that we can build flexibility into the air freight network to manage increased volumes and demand in the lead-up to Christmas. Last year we flew more than 400 metric tons of mail on our busiest night, and more than 40 million parcels during December; this year, we expect to exceed both those targets.”

Qantas Group CEO, Alan Joyce, added, “This builds on the long-standing partnership between Australia’s national carrier and the nation’s postal service to deliver for customers. Consumer preferences and expectations are rapidly changing and together with Australia Post we’re responding by growing our dedicated freighter fleet to provide a better experience for consumers and businesses. 

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With over a decade of experience as a business and technology journalist working in B2B publishing, Hazel first joined UKi in 2011. After taking 18 months off to bring up her daughter and try her hand at marketing copywriting, she returned in January 2018 to do what she loves best – magazine editing! She is now the editor of UKi's Passenger Terminal World and Parcel and Postal Technology International magazines.

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