Monday, August 13, 2012

Qantas Loses Interest in Express Freight Road Haulage

It's Worse Than That - We're Sold Captain
Shipping News Feature

AUSTRALIA – Excruciatingly named road haulage outfit Star Track Express are boldly going where they have never been before after Qantas announced they were to shed their 50% stake in the express freight group and their equal partners in the venture, Australia Post, are the likely purchasers.

Qantas says it has been considering dropping the company for some time as it does not fit the national carrier’s business model and estimates say a shortfall on the airline’s initial spend in 2003 of A$375 million is to be expected, possibly a drop of up to A$100 million. With 57 branch facilities Australia-wide, StarTrack operates a fleet of more than 3,000 vehicles and the company claims it transports more than one million parcels across the country every week.

The original Star Track deal was struck before Qantas CEO Alan Joyce took over in 2008 and he has been a controversial figure as he tries to remodel the company, grounding the entire Qantas passenger fleet in October last year after ongoing labour disputes over job losses, pay and conditions.