Following the launch of its first dedicated cargo service a year ago, Qantas has decided to boost its presence in the sector with a significant expansion within and beyond Asia.
The Australian carrier has taken a 49% stake in a new joint venture named Thai Air Cargo. It starts with only one dedicated freighter, but the venture formed with local company CTI Holding foresees immense growth potential. Qantas executive general manager associated businesses Denis Adams likes the deal because "it allows us access to intra-Asia traffic rights. One of the disadvantages of being down here [in Australia] is that we're at the end of the line. If we can get into developing markets in Asia it will give us a broader base."
This philosophy is also behind the move of Qantas to take a 49% stake in the Singapore-based low-cost carrier JetStar Asia. Qantas is managing both this start-up and Thai Air Cargo. Australia has also awarded Qantas new all-cargo routes to South Africa, which it will operate once-weekly, and Germany, which has unlimited capacity and frequencies on the German route, will take advantage of new fifth freedoms granted under Australia's bilaterals with China and India. The outbound flights will operate from Sydney to Frankfurt via Shanghai, and return via Mumbai and Singapore or Mumbai and Shanghai.
Qantas made its first foray into all-cargo routes last February with twice-weekly freighter flights on the Sydney-Shanghai-Chicago route using a wet-leased Boeing 747-400F from Polar Air Cargo, a subsidiary of Atlas Air. The carrier will also rely on wet-leased freighters from Atlas Air for the new routes into Germany and South Africa. Qantas currently has no dedicated freighters in its own fleet. It has not said yet who will supply the initial Boeing MD-11F that Thai Air Cargo plans to use.
Expanding into the cargo business and investing in the Thai joint venture represent offshore initiatives by Qantas that follow after rejection of its proposed equity alliance with Air New Zealand. They all point to the airline's goal of finding opportunities beyond those available within Australia.
Source: Airline Business
