Australian airline Qantas is moving into the Asian air express market with the takeover of theSingapore-based DPEX group for an undisclosed sum. It already operates a sizeable express business
in its home market.Qantas announced today that it had acquired 100% of the Asia-based express freight operator,DPEX Worldwide. This followed the acquisition of 37.5% of the DPEX franchisee in China on 30 May2007.
DPEX has seven worldwide hubs, 340 service centers, the use of 265 flights per day, more than2500 vehicles and over 4000 employees, according to information on its website. No revenue orvolume figures were immediately available. Founded two decades ago, the group offers worldwidedelivery of international documents, express parcels and express freight shipments, along with animport express service.
Grant Fenn, Qantas Executive General Manager Freight Enterprises, said the investment inDPEX, whose worldwide network included 18 countries across Asia, represented an importantdevelopment for Qantas Freight Enterprises.
“The DPEX Worldwide acquisition will provide us with an exciting opportunity to enter theAsian express market and significantly expand our footprint in the region,” he said. “This is ahigh-growth market that complements Qantas’ focus on Asian air freight and our Australian expressoperations and provides a great building block for expansion and growth.
“We will be concentrating on expanding the company’s operations in key markets, building theDPEX brand and developing enhanced products and services for clients,” Fenn added. DPEX WorldwideCEO Donald Tay will continue to lead the business, Qantas stated.
Qantas is already well-established in the Australian express market through two jointventures with Australia Post. Their joint airline, Australian air Express (AaE), provides domesticair capacity for mail, express and freight shipments, and is used by express companies for uplift.AaE is currently expanding its fleet to seven B737 freighters, and also operates several B727-200and BAe146 cargo planes as well as having access to capacity on Qantas passenger flights.
The separate road express freight delivery company Star Track Express was acquired by Qantasand Australia Post for $750 million in 2003 and operates as a joint venture subsidiary.
Qantas also offers a “Qantas Express Parcel” export service for small packages in cooperationwith air freight forwarder Jupiter Air Oceania, in which it has a minority stake.
