Australia Post today expanded its express and parcels business with a deal to buy Qantas’ 50%stake in express operator StarTrack while selling off its 50% stake in cargo airline Australian air
Express (AaE) to Qantas.The postal operator will pay A$408 million (€325m) plus completion adjustments of $5 million forthe 50% stake in StarTrack, which will give it full ownership of the company, combined with thedisposal of its 50% stake in AaE, which will become a 100% Qantas subsidiary.
The agreement, subject to final shareholder and regulatory approval, will end the long-standingjoint venture structure for StarTrack and AaE, which Australia Post and Qantas created in 2003. Thetransaction is expected to be completed in the fourth quarter of 2012.
Australia Post declared that StarTrack is a key strategic investment, offering significantcomplementary express freight capabilities and products to those offered by its international anddomestic parcels network. Together, Australia Post and StarTrack would offer a broad range ofproducts to consumers, small-and-medium enterprises and larger businesses.
The postal operator said it has no plans to make any changes to the current management oroperations of StarTrack, and it is anticipated that the StarTrack company and brand will remainstandalone within the Australia Post group.
In contrast, Australian air Express, which provides air freight capacity to StarTrack andAustralia Post through its fleet of B737s, BAE 146s and smaller freighters, is no longer seen as acore investment.
Australia Post Managing Director and CEO Ahmed Fahour said: “The growth in online shopping inAustralia is increasing demand for flexible, timely and cost effective delivery solutions forbusinesses and consumers. StarTrack also provides infrastructure capabilities that are of strategicand commercial benefit to Australia Post, including access to a fully automated network, track andtrace technology and line-haul services options. Under single ownership, both Australia Post andStarTrack will have a far more comprehensive offer to customers and the potential to unlock furthervalue for our customers in the future.”
He added: “I look forward to continuing to work with StarTrack CEO Stephen Cleary and the teamto deliver superior service to StarTrack customers.”
Qantas Group CEO Alan Joyce said the 100% acquisition of Australian air Express wouldsignificantly strengthen the airline’s air cargo network. “Through this acquisition we will be ableto offer an integrated air freight product across domestic and international networks. Byleveraging the best from both businesses and delivering efficiencies, we will provide a marketleading service to our customers.”
Both Australia Post and Qantas stressed that Australia Post and StarTrack would remain majorcustomers of Australian air Express and Qantas Freight.
Earlier this year StarTrack integrated the former sales division of AaE, leaving the latter as apurely operational cargo airline, and re-launched with a new brand to promote its air and roadexpress services. It has a network of 57 branches, a fleet of more than 3,000 vehicles andtransports more than one million parcels for its customers every week.
