Qantas diversification continues into air freight and announces results
Qantas will announce its annual results today, but before doing so, the airline has announced that is forming a dedicated domestic air freight business.
Express Freighters Australia will start operating in October with refurbished B737-300 aircraft that will carry time-sensitive freight such as mail, electrical equipment and computers.
Qantas already carries domestic freight in in the holds of its passenger aircraft, but this is the first time that it has operated dedicated domestic freighters.
Qantas’ chief executive Geoff Dixon said Express Freighters Australia would lease B737-300 aircraft to Australian air Express (AaE) under a 12-year contract. AaE is a Qantas-Australia Post joint venture, adding, “Express Freighters Australia will not only provide increased revenue, but also new employment for pilots and additional work volumes for Qantas engineers.”
Operations will start in October with one aircraft and four pilots, growing to four aircraft and up to 40 pilots by March next year. “We will see where it grows from there,” said Qantas’ executive general manager, associated businesses, Grant Fenn.
Qantas Engineering will convert the aircraft at its Avalon base, as well as provide maintenance support.
The Qantas 737s will replace the aircraft that a third party operator, National Jet, provides for AaE. AaE began as a joint venture by Australia Post and Australian Airlines, and Qantas took a half share when it bought AA. AaE carries freight for other transport groups such as TNT, Toll and Star Track Express.
Qantas also runs three Boeing 747s as dedicated international freighters for time sensitive freight.
Mr Dixon said Express Freighters Australia had already employed pilots under Australian workplace agreements (AWAs) for the start-up of the new business.
Qantas shares closed 3¢ higher at $3.13 and the company will announce its eagerly awaited annual results today.
Report by The Mole
John Alwyn-Jones
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