AirAsia X Wants To Sell Cargo Belly Space On Its Airbus A330s

AirAsia X jets has inked a deal with another Capital A (formerly the AirAsia Group) subsidiary to better utilize the available cargo space in the cargo holds of its jets. Capital A’s logistics business, Teleport, will use up to one-third of the available cargo space on AirAsia X’s Airbus A330-300 jets over the next 12 months. For Teleport, it’s about responding to the need for extra cargo capacity. For AirAsia X, it’s about maximizing revenue when intra-Asia passenger demand remains subdued.

Diversification continues at AirAsia X

As Capital A continues to diversify its business model, AirAsia X is attempting to significantly boost its regional presence and become a viable long-term partner for some of the world’s largest freight forwarders. Recently, the airline signed a deal with global logistics leader GEODIS to operate several dedicated weekly cargo flights across the Asia-Pacific region over the long term.

AirAsia X and its sister airline Thai AirAsia X successfully restructured last year and is now relaunching as a cargo- and passenger-focused United airline. The deal with Teleport builds on that strategy. AirAsia X says they are well-positioned to compete effectively in the markets in which it operates, having arguably the lowest operating cost structure of any airline of its kind in the world.

AirAsia X is putting increased emphasis on diversifying its revenue sources, including putting a greater emphasis on freight. Photo: Getty Images

“We are also in discussions with several other key global customers with air cargo needs, especially where we have established bases and flying rights. Only two months after our restructuring, We have a strong need to expand our cargo business,” says AirAsia X CEO Benyamin Ismail. “This will neatly align with one of the core pillars of our combined carrier strategy. Cargo revenue will be the foundation of our route strategy for the foreseeable future, while passenger revenue will be auxiliary for the first time.”

AirAsia X has 18 Airbus A330-300 jets of which six are in service. Thai AirAsia X has nine of the same planes, of which five are in service. Teleport’s aspiration of becoming a significant freight forwarder is hampered by it only having one aircraft – a Boeing 737-800. Inking the deal with AirAsia X allows Teleport to meet growing customer demand while also becoming one of Southeast Asia’s most efficient freight forwarders. Teleport’s existing service areas include Malaysia, Thailand, Indonesia, Philippines, India, Singapore, and China.

Less than half AirAsia X’s jets are back in the air. Photo: Getty Images

“We are delighted to be working more closely with AAX on its A330 fleet as an integral freighter. In addition to our dedicated 737-800 freighter, AirAsia X’s addition of the A330 allows us to provide our customers with additional capacity to meet demand in the region while operating from our main hubs in Kuala Lumpur and Bangkok,” says Teleport Chief Operating Officer, Adrian Loretz.

“In 2022, we are looking at strengthening our fleet and in our scheduled route network. Adding more key destinations to cover South East Asia and beyond – coupled with the extensive coverage and high frequency of our existing AirAsia passenger flights. This is especially important as we focus most of our resources on the supply chain to play a key role because We expect this segment to continue to grow significantly over the next few years.”

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