Qantas Freight secures six-year FedEx agreement


Airline's freight arm to maintain TNT Australia's B2B volumes

Qantas Freight secures six-year FedEx agreement
Freight is providing a solace for Australia's pandemic-hit airline

 

FedEx Express subsidiary TNT Australia has signed a six-year domestic freight services contract with Qantas Freight.

The agreement with the airline’s freight division will support TNT’s parent company in maintaining domestic business-to-business (B2B) freight volumes across several industries including mining, construction, medical and pharmaceuticals.

The freight shipments will include machinery parts for mining equipment, urgent medical supplies and materials for manufacturing.

Despite ongoing turbulence in the passenger flight space, Qantas Freight, and executive manager Catriona Larritt says the new deal comes at a time when the demand for freight services is higher than ever.

"Qantas has had a long-standing relationship with FedEx and TNT in Australia. As FedEx and TNT come together in Australia, our extended agreement will help meet continued demand," Larritt says.

"Together, we will work to ensure we meet the needs of customers now and into the future."

Mainstream reports suggest the deal is expected to be worth about $350m over the life of the contract and deal is "a major financial blow to rival airline Virgin Australia, which used to hold the freight agreement".


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"This agreement will enable FedEx and TNT to continue meeting Australia’s intensifying demand for freight, particularly while passenger aircraft belly space capacity remain constrained due to COVID-19," FedEx Express Australasia vice president Peter Langley says.

"We are actively counselling and working with small, medium and large businesses in Australasia to support their growing demand – especially in the wake of accelerated e-commerce and online shopping.

"Our long-term domestic agreement with Qantas Freight will provide these businesses with reliable access to the best connectivity within Australia and to new international markets."

 

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