Australia Post along with Qantas is set to launch a dedicated domestic freighter network for StarTrack, a subsidiary that provides e-commerce-driven, parcel delivery and supply chain solutions for local, international and online businesses.

To be launched in July this year, Qantas will provide three B737Fs and three BAE146-300Fs as part of a A$500 million (US$366.8 million) contract signed last year with Australia Post to carry domestic mail, parcels and express post until mid-2020.

“This strategic alliance creates a greater opportunity for us to be first to deliver for our customers, combining our unrivalled delivery network and existing freight network with a dedicated and flexible air network,” said Ahmed Fahour, Australia Post group CEO and managing director.

Qantas will also offer access to the collective belly space on domestic Qantas and Jetstar passenger flights, as well as eight more freighters. “This network, combined with the strength of our partnership and interline agreements, gives Qantas Freight significant network reach to more than 500 international and 80 domestic destinations,” Qantas Group CEO Alan Joyce said.

Australia Post and StarTrack deliver more than four billion items annually to 11.4 million addresses across Australia via 11,000 vehicles, 500 facilities, 50 business hubs and more than 20,000 access points – including 4,000 post offices.