Malaysia’s AirAsia X targets Asian cargo market in deal with logistics company
KUALA LUMPUR, January 26 (Reuters) – AirAsia X Bhd (AAX) from Malaysia AIRX.KL has signed a partnership agreement with French logistics company Geodis, aimed at developing cargo capacity and generating revenue while passenger flights remain blocked due to coronavirus travel restrictions, the airline said on Wednesday in a press release.
AAX, the long-haul subsidiary of low-cost carrier AirAsia Group, said the agreement will last for an initial period of six months starting Jan. 20, with further extensions to be considered.
The cargo plan comes as the carrier restructures its operations with passenger flights grounded since the start of the coronavirus pandemic in March 2020 as Malaysia’s borders remain closed to international tourism. [nL1N2T10QR]
Under the agreement, AAX will provide dedicated scheduled cargo flights between Kuala Lumpur and Hong Kong, Chennai, Shanghai and Sydney, he said.
Chief executive Benyamin Ismail said the airline intends to capitalize on air freight rates which have risen as passenger planes remain grounded.
He said cargo made up 7% of the airline’s total revenue before the COVID-19 pandemic, but he expects cargo operations to contribute at least 40-50% of total revenue in the future. to come up.
“Additionally, passenger revenues will offset any drop in freight rates when we resume regular scheduled flights,” he said.
(Reporting by Liz Lee; Editing by Kenneth Maxwell)
(([email protected]; +603 23338008; Twitter: @livinglizly;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.