Qantas sells express airfreight to Toll

QANTAS has sold its Asian express airfreight business to the Toll Group.

The sale of the DPEX Group – Asia’s biggest independent express business – excludes the airline’s stake in the DPEX Australian operation. Its completion is also subject to approval by the Chinese competition authorities as both Qantas and Toll have significant unrelated existing interests in China.

Toll’s managing director, Paul Little (right), says DPEX will be a vital part of Toll Global Express’ (TGX) future growth.

“DPEX would be an important addition to Toll’s TGX Asia Pacific operations, that had acquired Deltec, Skynet and Kwikmail businesses in the middle of last year, and would provide additional scale and coverage across a network of 19 countries in Asia.”

DPEX is likely to generate revenue worth $A30 million for Toll in its first year of ownership, such that it is expecting an increase in operating profit from five to 10 per cent.