Qantas and Australia Post renew Partnership on Joint Ventures and Sign Mail Contracts

Sydney, 12 August 2010

Qantas and Australia Post today confirmed the renewal of their partnership in joint ventures, Australian air Express and Star Track Express, in addition to signing a new five year mail contract with a combined value of $100 million per annum.

Qantas Chief Executive Officer, Mr Alan Joyce, said Australian air Express and Star Track Express were strategically important assets and as such, Qantas and Australia Post had committed to remain equal partners in both ventures.

“An extensive review was conducted of both businesses, which demonstrated there were significant customer, operational and market benefits for Qantas and Australia Post to remain in partnership,” Mr Joyce said.

“Both Australian air Express and Star Track Express continue to be viable and profitable operations, by offering extensive air and road freight options for Australian business.

“We have now commenced a two month process to complete a strategy to improve the value of these joint ventures and assess options for future growth.”

Details of a future direction for Australian air Express and Star Track Express will be released once this has been completed.

“We recognise the significant value that exists in Australia air Express and Star Track Express and we’re also in agreement that we’ve yet to tap into it their full potential,” said Australia Post CEO and MD, Ahmed Fahour.

“Our investment in Australian air Express and Star Track Express is strongly aligned with the Future Ready business renewal program that sees us developing our capabilities in the parcels and express services areas,” said Mr Fahour.

Mr Joyce said Qantas and Australia Post had also signed a new five year contract for air transport delivery of international and domestic mail on Qantas aircraft as well as a contract for domestic belly space with Australian air Express.

“Qantas and Australia Post have a long record of working together – in fact our first mail service was in 1922,” Mr Joyce said.

Qantas and Australia Post operate two joint ventures:
- Australian air Express, Australia’s leading domestic express air freight service company;
- Star Track Express, a premier road express transport and logistics solutions provider.

Issued by Qantas Corporate Communication (5010)