Australia Post and Qantas Reaching New Heights for E-Commerce

Ally Feiam By Ally Feiam | 12 Aug 2019

Australia Post and Qantas have signed a $1bn deal to support the growing need for e-commerce deliveries. 

Marking nearly a century between the two Australian companies, Aus Post and Qantas, are aiming to benefit customers and online retailers. The deal’s purpose is to provide ‘greater network flexibility to meet customer expectations’.

The agreement, which spans for seven years, includes the introduction of three Airbus A321P2Fs (Passenger to Freighter) – this is the first airline in the world to operate an A321 as a freighter craft. This carrier is expected to add 50 per cent more capacity compared to its current Boeing 737 freighters.

“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,” explained Christine Holgate, CEO and Managing Director of Australia Post. “This agreement will further boost our unrivalled, dedicated air freighter network with newer aircraft and more capacity right up until the opening of the new Western Sydney airport in 2026.”

Another part of the deal includes Australia Post customers priority access to ‘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.

“The enhanced air freighter network complements $900 million in investment across our network through automation and infrastructure, and provides the speed, flexibility and reliability customers expect,” Ms Holgate further explained. “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 tonnes of mail on our busiest night, and more than 40 million parcels during December; this year, we expect to exceed both those targets.”

Partnerships between Aus Post and Qantas began in 1922, as the Australian air carrier began its work flying airmail for the postal service in 1922. The new fleet of carriers rolls out in October 2020.

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