AirAsia X targets Asia cargo market in deal with logistics firm

AirAsia X CEO Benyamin Ismail

KUALA LUMPUR: AirAsia X Bhd (AAX) has signed a partnership deal with French logistics firm Geodis, aiming to develop cargo capacity and generate revenue while passenger flights remain grounded due to coronavirus travel curbs, the airline said in a statement on Wednesday.

AAX, the long-haul affliate of budget carrier AirAsia Group, said the agreement will run for an initial period of six months commencing Jan. 20, with further extensions to be contemplated.

The cargo plan comes as the carrier restructures its business with passenger flights grounded since the start of the coronavirus pandemic in March 2020 as Malaysia's borders remain closed to international tourism.

Under the agreement, AAX will provide regular dedicated scheduled cargo flights between Kuala Lumpur and Hong Kong, Chennai, Shanghai and Sydney, it said.

Chief executive Benyamin Ismail said the airline intends to capitalise on air cargo rates that have risen as while passenger planes remain grounded.

He said cargo accounted for 4% of the airline's total revenue before the COVID-19 pandemic, but he expects the cargo operations to contribute at least 40-50% of total revenue moving forward.

"Furthermore, passenger revenue will offset any drop in cargo rates when we start normal scheduled flights again," he said. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

AirAsia X , cargo , Geodis


Next In Business News

Ringgit opens marginally higher as greenback demand eases
Singapore economy expands 3.7% in Q1 2022
Leong Hup faces near-term headwinds
Bursa bounces after sharp losses
Trading ideas: KLK, KLCCP Staple Group, TSH Resources, UWW Holdings, Farm Fresh, Boustead Heavy Industries, Menang, Perak, Sime Darby, Malakoff, Pekat Group and GDeX
Facing crisis, Sri Lanka to cut spending 'to the bone'
India could cut import tax on some edible oils to tame local prices
Africa objects, Malaysia has reservations, on US push to reform health rules at WHO
GLOBAL MARKETS-Stocks tumble on growth concerns, bond yields slip
Oil steadies after choppy trade, US says export ban not ruled out

Others Also Read