TNT Express has awarded Virgin Australia a five-year, $575 million contract to transport cargo across Australia, according to The Australian newspaper.

The publication reports that the contract will begin in July and it will see Virgin using bellyhold capacity as well as dedicated freighter aircraft.

Virgin Australia is reportedly planning to wet-lease two BAE146 and one B737-300 Freighter.

Last year, the carrier launched its own cargo division after it previously had its cargo service operated by Toll.