Sunday, October 28, 2012

Air Cargo Carrier Releases Freight Financials Showing Task Ahead

Qantas Has Work to do to Ensure Recent Deal a Success
Shipping News Feature

AUSTRALIA – Documents disclosed by national air carrier Qantas have revealed the size of the task on hand to turn newly 100% acquired subsidiary freight carrier Australian air Express into a truly profitable unit. We told earlier this month how the swap of controlling shares with Australia Post meant Qantas now owns 100% of the ailing cargo company but figures now show the scale of decline in the subsidiary’s fortunes over the past year.

Qantas Group CEO Alan Joyce has been bullish over a deal which saw Qantas net an approximate profit of A$30 million from the recent exchange but the figures now released show Australian air Express turned a A$17 million profit in the year to June 2011 into a measly A$2 million this year however the company maintains that subsuming the air Express assets into its own comparatively successful freight operations will produce an economy of scale plus better and more efficient utilisation of group assets.

Up to now air Express has made use of its Qantas links piggy backing freight in the belly holds of the carrier’s aircraft but assuming successful integration of the smaller company’s own fleet which will give more operational flexibility, and if they can get past the fly in the ointment, the group’s recent record where industrial relations are concerned (redundancies are a certain side effect of such transactions) the Qantas latest trend of performing well in the sector despite difficult trading conditions might well continue.