Chop and change for Star Track Express, AaE

Review of Qantas and Australia Post joint ventures demands new strategy

By Rob McKay | May 18, 2011

The long-expected rationalisation of the freight joint ventures between Qantas and Australia Post were unveiled today.

The "reconfiguration" of Australian air Express (AaE) and Star Track Express,
both of which have failed to perform financially as hoped, followed a "detailed and wide-ranging review".

To be rolled out over the next 12 months, the reforms will be overseen by AUX Investments, the holding company the parent firms established last year to guide the review.

Key changes will include:

• The retail division of AaE will be merged with Star Track Express. Star Track Express will therefore be a solely retail-focused business offering a market leading service via road and air;

• AaE will solely focus on domestic air linehaul and cargo terminal operations, leveraging Australia’s largest airport-to-airport air linehaul network

• AaE’s express sales, customer service and marketing functions will be integrated into Star Track Express to support this expanded logistics offering. A shared support model that services both businesses will also be implemented across IT, finance and procurement

• The appointment of Kevin Turnbull as Chief Financial Officer of Star Track Express business, following the recent appointment of Stephen Cleary as Chief Executive.

Australia Post Managing Director Ahmed Fahour says the changes would provide clarity of focus for both businesses, with each focusing on their existing strengths.

"The Australian air Express and Star Track Express businesses have always had great potential," he adds.

"These changes set them on a clear path of focusing on their respective strengths and capabilities, and we believe they will allow us to unlock the true value of our investments."

Qantas Chief Executive Alan Joyce believes the reconfiguration will improve the value and competitiveness of both businesses and position them for growth.

"Establishing what is now a clear strategic direction represents an exciting and strong future for both AaE and Star Track Express," Joyce says.

"They operate in a highly competitive environment and, supported by a range of shared services, they will now be positioned to better meet customer needs and offer market leading domestic air linehaul and integrated express freight solutions."

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