Qantas Airways : FREIGHT AND AUSTRALIA POST ANNOUNCE DEDICATED FREIGHTER FLEET

Qantas and Australia Post today announced a new dedicated domestic air-freighter network to be used exclusively by Australia Post and StarTrack customers.

The dedicated network will consist of six freighter aircraft featuring StarTrack livery, with continued priority access to cargo space in the Qantas Group's passenger fleet. Five of the dedicated StarTrack freighters will come from Qantas Freight's existing fleet, with a soon to be delivered sixth larger aircraft, a Boeing 737-400, joining the fleet.*

To be launched in July this year - the network is part of the five year contract, with a value in excess of $500 million, signed last year for the transport of Australia Post's domestic mail, parcels and Express Post until mid-2020.

Ahmed Fahour, Managing Director & Group CEO Australia Post, said the dedicated Qantas freighters would further strengthen the extensive delivery and logistics network that underpins both Australia Post and StarTrack.

'This strategic alliance creates a greater opportunity for us to be first to deliver for our customers, combining our unrivalled delivery network and existing freight network with a dedicated and flexible air network,' Mr Fahour said.

'The dedicated domestic air-freighter network - featuring our StarTrack-branded planes - is our latest milestone in delivering a world-class parcels, freight and logistics network that meets the ecommerce needs of Australian businesses and consumers and connects them to global opportunities.

'This is great news for local businesses, manufacturers, wholesalers, retailers and all ecommerce companies. When they choose Australia Post and StarTrack, they will have the support to grow with access to the best air freight network.'

Qantas Group CEO, Alan Joyce, said the new arrangement focused on providing a fast, reliable and more efficient service to Australia Post and StarTrack.

'We're thrilled to provide Australia Post with a dedicated freighter network for their domestic customers. This builds on the strong relationship that has existed between the national carrier and the nation's postal service since 1922 when Qantas first started flying airmail,' said Mr Joyce.

'Our transformation program has sharpened the efficiency and flexibility of our freight business, and sharing these benefits with customers is part of our competitive edge. Our focus in designing this agreement is to help our biggest freight customer better coordinate their supply chain and ultimately deliver a better service to their customers.

'Scale is a unique part of what we offer. Qantas Freight offers access to the collective belly-space on domestic Qantas and Jetstar passenger flights as well as eight freighter aircraft in addition to the Australia Post dedicated freighter network. This network, combined with the strength of our partnership and interline agreements, gives Qantas Freight significant network reach to more than 500 international and 80 domestic destinations,' added Mr Joyce.

*Dedicated Australia Post/StarTrack fleet:

From July 2016, the network will service nine destinations across the east and west coast of Australia and include the following aircraft:

· 1x B737-400 (an additional aircraft to be operated by by Express Freighters Australia, Qantas Freight's wholly-owned subsidiary freighter management company)

· 2 x B737-300 (part of existing Qantas Freight Fleet)

· 3 x BAE146-300 (part of existing Qantas Freight Fleet)

Including the additional B737-400, Qantas Freight will have a total of 14 aircraft.

About Qantas Freight:

Qantas Freight Enterprises is the international and domestic air freight division of the Qantas Group and employs 1,400 staff across the globe.

Qantas Freight markets the freight capacity on Qantas and Jetstar passenger aircraft as well as operating a fleet of dedicated freighters (four B737-300CF, four BaE146, two SAAB 340s, two B747-400Fs, one B767-300Fand - from July 2016 - one B737-400) which supplement capacity on key domestic and international routes. This network, combined with the strength of the Emirates partnership and interline agreements, gives Qantas Freight significant network reach to more than 500 international and 80 domestic destinations.

About Australia Post and StarTrack:

Australia Post is the oldest continually operating organisation in Australia. Each year Australia Post and StarTrack deliver more than four billion items to 11.4 million addresses across Australia. The strength of our network is unmatched - with more than 11,000 vehicles, 500 facilities, 50 business hubs and more than 20,000 customer access points, including our 4,000 Post Offices (over 2,500 of these located in rural and remote areas), together with the critical to-the-door (last-mile) delivery network that only we service nationally.

StarTrack, a business of Australia Post provides ecommerce-driven, parcel delivery and supply chain solutions for local, international and online businesses. Australia Post and StarTrack form Australia's largest parcels, freight and logistics provider, combining the trust, reach and convenience that Australia Post offers, and the premium service standards, express freight capability and business-to-business strength of StarTrack.

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