New Zealand aviation company Airwork said it will soon launch a cargo airline in Australia, apparently beating Virgin Blue to the deal.

The airline, using three Boeing 737Fs, will fl y freight throughout Australia for listed logistics company Toll Holdings, which in New Zealand owns Toll Rail and the Cook Strait Interislander.

Airwork managing director Hugh Jones said the company was to sign the fi nal regulatory documents at the end of last month. Two of the 737-300Fs were due to arrive from the US.