AIRASIA X (AAX) has partnered with global leading transport and logistics provider GEODIS in an effort to provide cargo capacity as well as boosting revenue for the ailing airline.
Under the agreement, AAX will provide regular dedicated scheduled cargo flights between Kuala Lumpur and Hong Kong, Chennai, Shanghai and Sydney.
The agreement will be in force for a six-month period commencing Jan 20, 2022 with the possibility of further extensions.
“Air cargo rates will continue to remain robust as long as planes remain grounded. We intend to capitalise on this opportunity for as long as it lasts. Cargo revenues were 4% of our total revenues pre-COVID-19. It has been our lifeline over the past two years,” said AAX Malaysia CEO Benyamin Ismail.
“We expect that our cargo operations moving forward will contribute at least 40-50% of our total revenue.
“More importantly we are now perfectly hedged to take advantage of the huge surge in air transport demand.
“Furthermore, passenger revenue will offset any drop in cargo rates when we start normal scheduled flights again.”
Besides, with an extensive footprint in Asia Pacific, partnering with GEODIS will not only complement the existing AAX network but will also stimulate additional air-cargo traffic in a number of markets that they both operate in.
Moreover, AAX wouldn’t be able to shy away from the benefits of GEODIS’ expansive road network, ensuring that cargo from its flight to Singapore, Malaysia, Thailand and Vietnam are able to be transported across the whole of Southeast Asia.
GEODIS aims to help more customers to circumvent disruptions that have negatively affected both air and sea cargo flows historically through their highly integrated, multimodal transport solution.
GEODIS Asia Pacific president and CEO Onno Boots commented that these new intra-APAC flight routes represent their sustained commitment in bringing customers highly reliable, innovative and cost-effective solutions that are tailored to what their business truly needs, allowing them to fully optimise the e-commerce boom and chart their long-term business growth.
“We look forward to working in partnership with AirAsia X to strengthen its logistics footprint,” he said. – Jan 26, 2022
