BANGKOK, 09 December 2004

Qantas Airways and CTI Holding of Thailand today signed a joint venture agreement formalising the establishment of Thai Air Cargo, the new Asian cargo airline to be based in Bangkok.

Thai Air Cargo, which is 51 per cent owned by Thailand's CTI Holding and 49 per cent owned by Australian airline Qantas, will:

* primarily serve Asian sectors within 5 to 6 flying hours of Bangkok;* operate high capacity MD11 freighter aircraft capable of carrying up to 86 tonnes of cargo; and* initially target markets in Japan, China, India and Europe, where it will also establish sales offices in addition to Thailand.

The Managing Director of CTI Holding, Mr Anusak Inthraphuvasak, said Thai Air Cargo planned to operate its first flight in mid-2005.

"The establishment of this new cargo airline will greatly assist Thai exporters of manufactured goods and producers of agricultural products to supply their markets.

"Thai Air Cargo has the right financial backing, market knowledge and airline experience. We have come to know Qantas Airways as a highly efficient and dynamic operator of air cargo and Thai Air Cargo and the air freight community in Thailand will benefit from Qantas' expertise," Mr Inthraphuvasak said.

Qantas Airways Executive General Manager Associated Businesses, Mr Denis Adams, said that Qantas was pleased to have the opportunity to join with the CTI Group in forming Thai Air Cargo.

"This is an excellent opportunity for Qantas to participate in the fast growing intra-Asia freight market and is an important part of the growth strategy for Qantas Freight.

"The launch of Thai Air Cargo also demonstrates Qantas' overall commitment to expanding its Asian operations, including the commencement of Qantas services between Sydney and Shanghai last weekend and the first flight of low-cost passenger airline, Jetstar Asia, next week," Mr Adams said.

"We look forward to our new partnership developing a network of freighter services serving markets throughout Asia and beyond."

A team from Thai Air Cargo and Qantas Airways will hold discussions with suitable aircraft providers and recruit staff in Thailand and throughout the planned Thai Air Cargo network in the lead up to the first flight.

Issued by Qantas Corporate Communication (3190)