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Cargo Belly Space Aboard AirAsia X is for Sale
Over the next year, AirAsia X will dedicate a third of the cargo capacity in its Airbus A330 cargo holds to transport freight on behalf of Teleport.
AirAsia X has reached an agreement with another Capital A (previously the AirAsia Group) company to make greater use of the cargo capacity in its planes’ cargo holds. Over the following 12 months, Capital A’s logistics company, Teleport, will utilize up to one-third of the cargo capacity aboard AirAsia X’s Airbus A330-300 planes. Teleport’s goal is to meet the need for more freight capacity. When intra-Asian passenger demand is low, AirAsia X’s goal is to maximize revenue.
AirAsia X is seeking to considerably increase its regional footprint and become a viable long-term partner for some of the world’s leading freight forwarders as Capital A continues to diversify its business strategy. The airline has secured a long-term agreement with global logistics company GEODIS to operate several dedicated weekly cargo flights throughout the Asia-Pacific region.
Last year, AirAsia X and its sister airline Thai AirAsia X successfully reorganized and are now relaunching as a United freight and passenger airline. The agreement with Teleport is a continuation of that approach. AirAsia X claims to be well-positioned to compete successfully in the areas where it operates, with the lowest operational cost structure of any airline of its kind in the world.
“We’re also in talks with a number of other major worldwide clients with air freight requirements, particularly in areas where we have established facilities and flying rights. We have a great need to increase our cargo business just two months following our restructure ” AirAsia X CEO Benyamin Ismail said in a statement. “This will perfectly match with one of our combined carrier strategy’s main cornerstones. For the foreseeable future, cargo income will be the core of our route plan, while passenger revenue will be supplementary for the first time.”
Expanding Teleport’s Services
Six of AirAsia X’s 18 Airbus A330-300 planes are currently in operation. Thai AirAsia X operates nine of the same aircraft, five of which are operational. Teleport’s ambition to become a major freight forwarder is limited by the fact that it only has one aircraft, a Boeing 737-800. Teleport will be able to handle expanding client demand while also becoming one of Southeast Asia’s most efficient freight forwarders as a result of the agreement with AirAsia X. Malaysia, Thailand, Indonesia, the Philippines, India, Singapore and China are among Teleport’s current service regions.
“We’re excited to be collaborating more closely with AAX on their A330 cargo fleet. AirAsia X’s acquisition of the A330, in addition to our dedicated 737-800 freighter, provides us to deliver extra capacity to fulfill demand in the area while flying from our primary hubs in Kuala Lumpur and Bangkok “Adrian Loretz, Teleport’s Chief Operating Officer, added in a statement. “In 2022, we want to expand our fleet as well as our planned route network. Adding additional essential destinations to cover South East Asia and beyond, in addition to our current AirAsia passenger flights’ vast coverage and high frequency. This is particularly crucial since we want to devote the majority of our efforts to the supply chain, which will continue to develop dramatically in the coming years.”
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