Australia Post and Qantas today announced a major reorganisation of their under-performing jointventure businesses Australian Air Express and Star Track Express focusing on closer cooperation and
better differentiation of the two companies.Star Track Express will become the customer-facing business offering a range of air and roadexpress services, while freighter operator Australian air Express (AaE) will be re-positioned as anair capacity provider. The re-positioned businesses compete in the domestic Australianexpress market with various Toll Group subsidiaries and TNT Express as well as with DHL Express,FedEx and UPS for international business.
Under the reconfiguration, the retail division of Australian air Express (AaE), its expresssales, customer service and marketing functions, will be merged into Star Track Express. The twocompanies will create a shared support model that services both businesses with IT, finance andprocurement.
In future, AaE will solely focus on domestic air linehaul and cargo terminal operations,leveraging Australia’s largest airport-to-airport air linehaul network. Star Track Express will bea solely retail-focused business offering a market leading service via road and air.
At the same time, new management has been installed at Star Track Express with the appointmentsof Stephen Cleary as CEO and Kevin Turnbull as CFO.
The reconfiguration, which follows a detailed and wide-ranging review, will leverage thestrengths of the two leading express freight brands, consolidating common functions to create twonew businesses with distinct capabilities, the joint owners said. The changes, to be rolled outover the next 12 months, will be overseen by AUX Investments, a holding company established lastyear to guide the review and provide streamlined governance across the businesses.
Australia Post Managing Director and CEO, Ahmed Fahour, and Qantas Chief Executive Officer, AlanJoyce, said the businesses remained strategically important joint venture investments.
Fahour said the changes would provide clarity of focus for both businesses, with each focusingon their existing strengths. “The Australian air Express and Star Track Express businesses havealways had great potential,” he said. “These changes set them on a clear path of focusing on theirrespective strengths and capabilities, and we believe they will allow us to unlock the true valueof our investments.”
Joyce said the reconfiguration would improve the value and competitiveness of both businessesand position them for growth. “Establishing what is now a clear strategic direction represents anexciting and strong future for both AaE and Star Track Express,” he said. “They operate in a highlycompetitive environment and, supported by a range of shared services, they will now be positionedto better meet customer needs and offer market leading domestic air linehaul and integrated expressfreight solutions.”
AaE, with more than 2,000 staff, is an integrated air express operator, operating a fleet offreighters (B737s, BA146s and smaller cargo planes) on more than 50 nightly routes between statecapitals, with collection and delivery through a fleet of 850 courier vehicles. It also usescapacity on Qantas and Jetstar passenger flights. Star Track Express, a premier road expresstransport and logistics solutions provider, was acquired by Australia Post and Qantas jointly forA$750 million in 2003.
