Australia Post is adding capacity to its air freight partnership with Qantas just months before the arrival of Amazon Down Under is expected to drive a surge in e-commerce volumes.
The Australian postal operator and the national carrier have welcomed the largest aircraft to join the dedicated domestic air network used exclusively by Australia Post and StarTrack customers, in another boost for the growing Australian online shopping industry.
The B737-400 freighter is capable of carrying 16,500 kgs of cargo and is part of a dedicated network of six aircraft, all branded in StarTrack livery.
The freighter's arrival is part of a five-year contract worth more than $500 million for the transport of Australia Post and StarTrack's range of premium and Express Products and Services until mid-2020. This agreement includes priority access to cargo space in Qantas Group's passenger fleet.
Australia Post Group Chief Operations Officer and StarTrack CEO, Bob Black, said the addition of the B737-400 was great news for Australian consumers and retailers, and further strengthened Australia Post's unrivalled delivery network.
"We're delighted to be able to offer local businesses access to the best value delivery service in the market; a fully integrated eCommerce and logistics network in the sky and on the ground," he said.
"This new aircraft is the largest type of freighter aircraft operating scheduled services in Australia and gives us greater capacity and flexibility. This is great news for customers, because speed and reliability are critical. In essence, our network – on the ground and in the air – is a competitive advantage for customers who choose us as their delivery provider."
Black added: "We know that online shopping continues to grow because of the price, range and convenience of products available on domestic and international marketplaces. We've continued to make significant investments in our delivery network because we're committed to helping Australian businesses grow by meeting the changing needs of their customers.
"The main aim for us is to help Australian businesses, including those in rural and regional areas, stay strong in a competitive and global market, and this new plane sets us apart from our competitors.”
Qantas International and Freight CEO Gareth Evans said it was an important milestone for the strategic partnership between Qantas and Australia Post.
"This new fleet is about providing Australia Post with the capability it needs to bring Australians a great delivery service and respond to the big changes we're seeing with the online shopping boom. We're working closely with Australia Post across the full scale the Qantas Group's international and domestic networks, and it's exciting to be adding to that with the arrival of our largest dedicated freighter."
In an interview with the Australian Financial Review (AFN), Black said that StarTrack currently has volume growth of 18-20%. Looking ahead, he predicted that Amazon’s market entry in Australia, which is expected this autumn, will boost the country’s e-commerce market. “When they arrive, we think they will grow the market,” he commented.
In a separate interview with The Australian, Black disclosed that Australia Post hopes to seal a delivery deal with Amazon in the near future. “We hope to have something agreed in the next two months. Amazon is a significant inbound international customer for us already.’’
Amazon announced last month that it plans to spend millions of dollars investing in the new ‘Amazon Australia Marketplace’ and promised to create “thousands of new jobs” amid an economic slowdown in the country.
According to the AFN, Australia's e-commerce market is worth around $21 billion but online sales remain a relatively small percentage of overall retail sales, running at around 7% compared with mid-teen percentages in the US and Europe.
