Qantas Freight and the Australia Post Group today announced a five-year extension of their international mail air freight agreement. This agreement sees Qantas Freight handle 12,000 tonnes of mail and parcels out of Australia each year.

The Australia Post Group is the nation’s largest user of air freight services, and the international contract builds on the five-year domestic air freight agreement the two companies signed in June last year. This included the establishment of a dedicated domestic freighter fleet for the Australia Post Group, which became operational in July 2016.

The total value of the contact with the Australia Post Group is in excess of AU$500 million (US$382.4 million) over five years. Together these agreements form the largest air freight contract in Australia. With all agreements in place, Qantas Freight has been retained as the largest provider of air freight services for the Australia Post Group.

“We’re committed to helping Australian businesses market and deliver their products internationally and to helping Australian consumers access global markets, so our partnership with Qantas is important for our customers,” said Bob Black, StarTrack CEO and executive general manager – parcel & eCommerce services.

“This strategic alliance – combined with our global reach through existing partnerships with key e-commerce platforms, postal and freight providers – will help Australian businesses and consumers buy and sell goods internationally with confidence, and complements our unrivalled domestic capability,” Black said.

As well as continuing to fly international letters, the international agreement includes the handling of international parcels on the Qantas Group’s more than 1,500 international flights per week. Interline agreements that Qantas Freight has in place with other carriers ensure the Australia Post Group has world-wide access.

“We have a well-established relationship with the Australia Post Group and the growing international parcel business makes this a substantial contract to secure,” said Gareth Evans, CEO of Qantas International and Freight. “We have transformed Qantas Freight to deliver flexible and efficient operations for the changing needs of our customers.

“This partnership sees the Australia Post Group and Qantas Freight well positioned to support the growing eCommerce industry which relies on air freight to achieve express delivery of its steadily increasing volumes of international packages and parcels,” said Evans.