Alison Webster recently became executive manager of Qantas Freight, which saw underlying EBIT down 50 percent for the second half of 2013 compared to the same period in 2012. Webster has held a range of senior commercial, sales, marketing and operational roles at Qantas and British Airways. She was most recently executive manager international customer experience. She told Air Cargo World about her take on Australian air cargo and the airfreight industry in general.
What is your outlook for the Australian airfreight industry’s future?
Air transport plays an important role in Australia’s express freight and courier market, and the industry has delivered consistent annual growth in recent years. While Australia is no different from other economies where cost pressures and improved infrastructure are supporting a modal shift to surface shipping, the role of airfreight continues to be recognized and valued. As Australia’s leading airfreight services provider, and with more than 80 domestic and 50 international destinations in our network Qantas Freight has a wide range of industry sectors that rely on our services to fulfill their supply chain. You have to remember that Australia is the sixth largest country in the world, with predominantly coastal population centers. With such a disparate geography, airfreight is really the only viable mode of transport for same-day deliveries between many major cities. Australians are also proving to be adept online shoppers and with retailers promising quick delivery times, airfreight is proving to be a valuable supply chain partner, both domestically and internationally.
What sectors do you plan to focus on at Qantas Freight?
Qantas Freight provides a broad product offering, including our core range of general cargo, mail and retail products, as well as specialist lines in live animals, perishables and goods that require extra security or special handling. We’re also looking at adding some new specialist products to our range in May this year…As well as being Australia’s leading cargo carrier, Qantas Freight is also Australia’s leading air cargo terminal operator with 21 terminals in 15 cities across Australia, plus a terminal in Los Angeles. This is another important part of our business, and as well as servicing the Qantas Group, we also provide ground handling for 25 other airlines.
How has your career experience prepared you for the air cargo industry?
I’ve come from a core airline background, which gives me a good appreciation for the interconnectedness of the belly space cargo business. My time leading the Qantas international customer experience team also gives me some good insights into how customer service and customer centric innovations can really drive customer preferences. I’ve observed in recent years the steps forward that Qantas Freight has taken with the acquisition of Australian air Express, introduction of iCargo, Express Check import collection process and smartphone apps, and I’m certainly keen to push further in these areas.
What aspects do you like about the airfreight industry so far? What aspects do you think need improvement?
It’s a down-to-earth and friendly industry. People have been quick to welcome me to my role, and there is a congenial spirit across the industry. I do find it interesting to consider that airfreight is the premium end of the supply chain but lags behind other modes of shipping in terms of technology and the routine use of service metrics. Like many other players, we at Qantas Freight are making investments to start measuring and reporting various service metrics. This has to be an area where the industry moves to a new, timely information norm, and I think this means it is an exciting time to join the industry as we make inroads into improving this paradox. Finally, I think logistics is one of the great hidden industries for any country, but especially so for an island nation with a disperse population like Australia. As well as discovering a fascinating industry, I’m also enjoying a new appreciation for my regular grocery shopping and musing on how my goods have traveled and how many pairs of hands and modes of transport have linked along the chain.
What is something unexpected that you discovered in the course of your new position?
I recently met some of our customers in Shanghai and was telling them about Qantas Freight. Several were surprised to learn that Qantas only started providing domestic Australian airfreight services last year following our acquisition of the other 50 percent shareholding in Australian air Express. I think many assumed that as Australia’s national carrier, Qantas Freight had a long history in the domestic market, which was good reinforcement to me that the domestic acquisition is an excellent strategic fit for our business.
Editor’s note: This article originally said Qantas Freight’s underlying EBIT was down 50 percent for the second half of 2013 compared to the first half of 2013. It is actually down 50 percent compared to the second half of 2012. Correction appended March 27, 2014, at 9:15 a.m. EST.