Australia Post Group and Qantas Freight have signed the largest airfreight contract in Australia in a five-year deal worth A$500m.
The deal is an extension of an existing contract that covers 12,000 tonnes of international mail and airfreight each year.
As well as continuing to fly international letters, the international agreement includes the handling of international parcels on the Qantas Group’s more than 1,500 international flights per week and will utilise the airline’s interline agreements.
The international contract builds on the five year domestic air freight agreement the two companies signed in June last year.
This included the establishment of a dedicated domestic freighter fleet for the Australia Post Group, which became operational in July 2016.
With all agreements in place, Qantas Freight has been retained as the largest provider of air freight services for the Australia Post Group.
“We have a well-established relationship with the Australia Post Group and the growing international parcel business makes this a substantial contract to secure,” said Gareth Evans, chief executive of Qantas International and Freight.
“We have transformed Qantas Freight to deliver flexible and efficient operations for the changing needs of our customers.
“This partnership sees the Australia Post Group and Qantas Freight well positioned to support the growing eCommerce industry which relies on air freight to achieve express delivery of its steadily increasing volumes of international packages and parcels,” said Evans.