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OzPost Inks Deal With Qantas

Australia Post and Qantas have inked a $1.4 billion deal for the airline to provide three new Airbus freighters to meet Australia’s surging demand for online shopping.

Qantas will also invest in three new Airbus A321P2F aircraft, former passenger jets which have been converted into cargo jets and boast a holding capacity of 208 cubic metres and can ship nearly 28 tonnes.

Compared to the airlines’ existing Boeing 737 cargo planes, each of these new aircraft will have an increased capacity of nine tonnes and are due to enter the fleet in October next year. The new seven-year agreement follows the two companies’ former $500 million freighting deal, which was first signed in 2010 and renewed in 2015.

Qantas will be the first in the world to operate the popular A321 as a cargo plane, with CEO Alan Joyce saying the expansion was essential to keep up with Australia’s love for online shopping. Figures from NAB show online shopping is continuing to grow locally, making up over 9 percent of total retail spend in the 2019 financial year, or about $29.3 billion.

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