Category Archives: AirAsia (Malaysia)

AirAsia reports improved results in the first quarter of 2022

Capital A Berhad (formerly known as AirAsia Group Berhad) (“Capital A” or the “Group”) presents the following operating statistics for its airline business for the First Quarter of the Financial Year 2022 (“1Q2022”).

Capital A Berhad Consolidated AOCs¹ has posted another significantly improved result across key operational metrics including a healthy load factor of 76% and capacity of 4.9 million passengers carried respectively in 1Q2022. The number of passengers carried has increased by 284% to 3.7 million year-on-year (“YoY”) in 1Q2022 leading to a 9 percentage points (“ppts”) improvement in load factor. The Group introduced additional capacity of 238% YoY to support the surge in demand, alongside relaxed travel restrictions across the Group. As a result, Available Seat Kilometres (“ASK”) soared by 223% and Revenue Passenger Kilometres (“RPK”) jumped by 264% YoY, primarily attributable to the strong domestic travel rebound and the gradual further easing of travel restrictions in 1Q2022.

For AirAsia Malaysia, the number of passengers carried and the capacity improvement jumped 464% and 455% respectively, compared to the same quarter in the previous year, off the back of the resumption of a significant number of additional domestic flights and the relaunch of numerous domestic routes to connect people between major cities, particularly during the festive season. In 1Q2022, the load factor increased by 1 ppt YoY to 74%. ASK jumped 475% and RPK jumped 476% YoY. These very promising achievements were driven by added frequencies of domestic flights in line with increased demand and were also attributed to the promotional campaigns that took place in 1Q2022.

AirAsia Indonesia also achieved a much improved load factor of 76% in 1Q2022, which surged 20 ppts YoY. Passengers carried and capacity improved by 126% and 141% quarter-on-quarter (“QoQ”), respectively, off the back of additional frequency added for domestic flights, particularly Jakarta to Denpasar and between Jakarta and Medan, to meet huge pent-up demand. The RPK surged 129% to 436 million from 190 million QoQ and increased 22% YoY from 357 million in the quarter.

AirAsia Philippines has continued to record the Group’s highest quarterly load factor at 86%, which rose by 12 ppts YoY, uninterrupted by the steep rise of Omicron variant cases in the Philippines during the quarter. In 1Q2022, the number of seats sold and capacity increased 233% and 186% respectively, compared to the same period last year. Similarly, ASK and the number of flights flown rocketed 203% and 186% YoY, with the support of the huge summer demand following the Philippines Government’s confirmation of further relaxed travel protocols.

In 1Q2022, AirAsia Thailand carried 1.45 million passengers, up 48 ppts YoY, an impressive increase over the past two consecutive quarters, mainly due to a strong recovery in travel demand and the easing of the entry rules as well as the reopening of the Thailand Pass (Test & Go). Noticeably, international tourist arrivals to Thailand increased as a consequence. Furthermore, AirAsia Thailand has increased its flight frequency and routes to cater for the evolving resurgence in travel demand, eventuating in a 32% growth in flights flown to 11,002 flights, in part, from a resumption of international flights. Similarly, the ASK and the seating capacity also improved by 34% on a robust rebound. Moreover, AirAsia Thailand has reallocated its capacity and flights to align with the reviving demand. As a result, the load factor in the reporting quarter was recorded at 73%, rising 7 ppts from the same period last year.

Capital A Berhad Consolidated AOCs – Malaysia, Indonesia & Philippines
1st Quarter 2022 Operating Statistics

Note: (i) The fleet count excludes:
– Two (2) A320 aircraft leased to a third party airline

Malaysia
1st Quarter 2022 Operating Statistics

Note: (ii) The fleet count excludes:
– Two (2) A320 aircraft leased to a third party airline

Indonesia
1st Quarter 2022 Operating Statistics

Philippines
1st Quarter 2022 Operating Statistics

Thailand
1st Quarter 2022 Operating Statistics

1. Number of earned seats flown. Earned seats comprise seats sold to passengers (including no-shows)
2. Number of seats flown
3. Number of Passengers Carried as a percentage of Capacity
4. Available Seat Kilometres (ASK) measures an airline’s passenger capacity. Total seats flown multiplied by the number of kilometres flown
5. Revenue Passenger Kilometres (RPK) is a measure of the volume of passengers carried by the airline. Number of passengers multiplied by the number of kilometres these passengers have flown
6. Number of flights flown
7. Number of aircraft including spares

¹ Capital A Berhad Consolidated AOCs refers to AOCs whose financial and operational results are consolidated for financial reporting purposes and these are the Malaysian, Indonesian and Philippines AOCs.

History of AirAsia liveries:

 

Avolon and AirAsia partner to create a transformational ride sharing platform in Southeast Asia

AirAsia has made this announcement:

Avolon, the international aircraft leasing company, today announces that one of the world’s leading airline groups, AirAsia Aviation Group Limited (AirAsia), has signed a non-binding memorandum of understanding to lease a minimum of 100 VX4 eVTOL aircraft from Avolon.

These eVTOL aircraft will allow AirAsia to further revolutionize air travel by providing advanced air mobility to a whole new range of passengers, transforming how we all connect more efficiently in our everyday lives.

In addition to the eVTOL aircraft, Avolon, through its investment and innovation affiliate Avolon-e, will partner with AirAsia to commercialize zero-emissions eVTOL aircraft and develop an industry leading urban air mobility (‘UAM’) platform in Southeast Asia. Avolon and AirAsia will form a working group to pursue local certification, research potential market opportunities and infrastructure requirements for UAM. AirAsia will also leverage its successful travel and lifestyle mobile app, the AirAsia Super App, to help support and build an eVTOL ride sharing platform with Avolon.

 Avolon VX4 Order book

In June 2021, Avolon ordered 500 VX4 eVTOL aircraft from Vertical Aerospace (NYSE: EVTL) (‘Vertical’), valued at US $2 billion. Since announcing that order, Avolon placed 250 VX4 aircraft with Gol and Grupo Comporte in Brazil, up to 100 aircraft with Japan Airlines in Japan, and a minimum of 100 aircraft with AirAsia. As a result, Avolon has now placed up to 90% of its initial orderbook, underlining the demand for VX4 aircraft from the world’s leading airlines.

About VX4 eVTOL Aircraft

VX4 eVTOL Aircraft The four passenger, one pilot VX4 is projected to have speeds up to 200mph, a range over100 miles, near silent when in flight, zero operating emissions and low cost per passenger mile. The VX4 is expected to open up advanced air mobility to a whole new range of passengers and transform how we travel.

Snakes on a plane – AirAsia makes an emergency landing after a snake was detected

AirAsia flight AK 5748 on February 10, 2022 over Malaysia. The flight was operating from Kuala Lumpur (KUL) to Tawau (TWU), but was diverted to Kuching (KCH) after the snake was detected.

Video:

In other news, AirAsia has made further announcements on its reorganization:

AirAsia Aviation Limited (AAAL), the holding company for the airline group, today announces key strategic and organizational changes as Capital A’s rapid transformation continues.

Following the recent group holding name change from AirAsia Group to Capital A, AAAL is to be renamed AirAsia Aviation Group Limited (AAAGL). The name change reflects the aviation group’s recovery and growth strategy by consolidating all of its airline operations under one entity to focus expansion of the business within the larger ecosystem.

The new airline group entity also announces the establishment of an independent board of directors, including the recent appointment of Tan Sri Jamaludin Ibrahim as independent non-executive Chairman, providing fresh perspectives and robust board leadership to support strategic growth of the airline businesses.

Under the new structure, AAAGL will oversee all airlines in Capital A, as well as related international support functions including AirAsia Consulting, shared corporate services division AirAsia SEA, the Santan food group and the ground handling services joint venture business called GTR.

The formation of a new board of directors for AAAGL, comprising all independent directors, (except the Group CEO), will be separate to the board of Capital A. This provides a dedicated focus on the aviation businesses to support sustainable growth including setting up new joint ventures in the future.  The plan is to assemble a balanced mix of industry leading  professionals with diverse backgrounds and complementary skills. It is envisaged that the board will comprise some of the best in their respective areas including well  known figures from the various countries it operates in to ensure diversity in nationalities, skills and gender.

Bo Lingam, Group CEO of AirAsia Aviation Group Limited said: “This announcement is much more than just a name change.It signals a strong new beginning for our airline group and supports the rapid expansion of Capital A’s portfolio companies, helping to facilitate strong projected growth in both airline and non airline companies.

“AAAGL now holds our existing airline investments and paves the way for new airline ventures to be formed in due course.  We have recently established the AirAsia Consulting company tasked at reviewing new airline partnerships, franchise opportunities and providing airline consulting services to not only AirAsia airlines but also to other airlines.  Santan is our fast growing inflight and on ground food and beverage restaurant chain, now with ten outlets across Malaysia. AirAsia SEA is the shared services division providing corporate services supporting the group and also has plans to support other airlines and related businesses in the future.  GTR completes the airline group ecosystem, providing industry leading ground services capabilities for not only AirAsia, but also to third party airlines.

“The rationale for these structural changes is to provide a separate, robust and lean platform for the airline operations supporting Capital A’s continued focus to become more than just an airline.  AAAGL will become one of the key pillars under Capital A, alongside the new digital businesses and aircraft engineering company, Asia Digital Engineering (ADE) – which is also preparing to announce a new board of directors in the near future, as a separate entity to AAAGL.

“The airline will always underpin the AirAsia brand and we have strong growth plans for the future as the world continues to  open up and the pandemic gradually moves to an endemic phase.

“Importantly, the future growth of the aviation group will be expected to come from new ventures, partnerships, geographies and adjacent businesses, expanding the aviation group’s broader ecosystem. Underpinned by our relentless pursuit of operational excellence as the world’s leading low cost carrier, our continued focus on cost and creating an optimal organizational structure will be critical to our strategy.

“I am thrilled with the strength of the board of directors for AAAGL which include Chairman Tan Sri Jamaludin Ibrahim to oversee our future plans. Each of them will bring a wealth of experience and diversity to ensure robust corporate governance and strong strategic oversight.

“Furthermore, this announcement supports our fundraising strategy for the airline group as a separate entity, given certain investors may prefer to invest only in the airline business.”

AirAsia Group is now Capital A

AirAsia Group Berhad has announced a name change for the group holding company to become Capital A Berhad (Capital A or the Group).

The name change reflects the Group’s new core business strategy as an investment holding company with a portfolio of synergistic travel and lifestyle businesses, which have rapidly transformed the AirAsia brand into much more than just an airline.

CEO of Capital A, Tony Fernandes said: “This is not just about unveiling a new logo. It’s a significant milestone that marks a new era for the Group. Today’s announcement reinforces we are not just an airline anymore.

“While the airline will always underpin the AirAsia brand, it has long been my firm intention, well before Covid hit, to leverage the strong data we have built up over 20 years and incorporate industry-leading new technologies to offer a broad range of products and services, over and above selling just airfares. The pandemic has allowed us to accelerate that strategy.

“Our brand has continuously evolved based on driving innovation and meeting ever changing consumer demand. The strategy behind the change of name is to introduce a new corporate identity that better reflects the Group’s core businesses today and its future undertakings, in tandem with our rapid transformation from an airline into a one-stop digital travel and lifestyle services group. We believe that the new company name will also further enhance the marketability of our products and boost the success of our Group for the long haul.

“Essentially Capital A is an investment company with a broad portfolio of businesses which all deliver the best value at the lowest cost, supported by strong data built up over two decades. We also have one of Asia’s leading brands to ride on, a strong people-first culture and an underlying promise of remaining committed to serving the underserved in all that we do. Just like what the airline has done from day one, all of our different lines of business will deliver the same strategy that is underscored by doing what we do best – making travel and everyday lifestyle services affordable, accessible and inclusive to all.

“We are now delivering more products and services under one umbrella than any other brand in Asean and with access to over 700 million people in the region, I foresee incredible growth opportunities for our brand across many different industries in all of our core markets.

“We have 16 products and services on our airasia Super App, providing not only the best value flight and travel deals but also everyday lifestyle needs, from food to retail and e-commerce, to same day delivery, ride hailing and much more. We are already one of the top three online travel agents (OTAs) in Asean and our super app is on track to become the leading lifestyle app in the region very soon.

“All of our portfolio businesses are well on the way to becoming industry leaders in their respective fields across Southeast Asia, including BigPay, our aircraft engineering division Asia Digital Engineering (ADE) and logistics venture Teleport.

“We already have over 50 million monthly unique visitors on our super app which has been recognised as a tech unicorn in under two years, our fintech business BigPay, has been given a significant injection of USD $100million from South Korea conglomerate SK Group and overall we have raised over RM2.5 billion to date through our fundraising strategy. Following strong consumer and investor support for our transformation strategy, we now set our sights on further capital raising initiatives for the airasia Super App, Teleport and ADE which will be announced in due course.”

On the airline, Tony commented: “While Capital A will be the new Group holding company name, one thing that isn’t changing is the AirAsia brand name for our airlines. It’s one of the strongest brands in Asia and provides a solid platform for all of our other products and services to leverage from each other.

“Even though the last two years have been the most difficult and disrupted years in the history of commercial aviation, I welcome the year ahead with much greater confidence. Domestic air travel has already started to rebound in our key markets. While there may be some delays for international flights to return to pre-Covid levels due to the Omicron variant, I believe this will be short-lived as many global health experts are also predicting, alongside accelerated vaccines and booster shots as well as the world gradually learning to live with Covid. I am hopeful borders will reopen gradually throughout 2022 and we will see a return to normal capacity for our international services by the middle to third quarter of this year.

“Over the past two years we have spent the downturn in flying building a solid foundation for a viable and successful future, which is not solely reliant on airfares alone. Capital A signals an exciting new era for our airlines and all of our other portfolio businesses within the Group as we embark on a significant new growth phase.

“Importantly, the best is yet to come. We have pivoted, we have transformed and we have a five year plan in place which will see non airline revenues contributing around 50 percent of overall Group revenue by 2026. Once the airlines return to pre-Covid levels in the near future all of our other lines of business will benefit significantly and will all soar to new heights in tandem with one another.”

By 2026 Capital A aims to achieve amongst others:

  • Group airlines connecting over 1 billion people in Asean.

  • The engineering division (ADE) becomes an industry leader for maintenance, repair and overhaul (MRO) services in Southeast Asia.

  • airasia Super App to be the super app of choice in Asean.

  • 10 million monthly active users for BigPay.

  • 10% market share in Southeast Asia for Teleport, in the logistics and e-commerce industry.

  • 5 million sign ups for edutech arm AirAsia Academy.

  • Over 21 million monthly orders on airasia grocer.

The new holding company name, Capital A, is immediately effective following the successful registration of the name by the Companies Commision of Malaysia announced on January 3 and the subsequent formal approvals received yesterday.

The name change from AirAsia Group Berhad to Capital A Berhad will not have any effect on the Company’s ongoing operations. The AirAsia stock name on the main Board of Bursa Malaysia Securities Berhad will change with immediate effect to reflect the new company name.

AirAsia secures CAAM license to fly drones

AirAsia has announced that it has secured its Certificate of Approval (COA) from the Civil Aviation Authority of Malaysia (CAAM), to conduct remote drone pilot training. The classroom training will be conducted at AirAsia Academy located in KL Sentral and practical training will be conducted at the YMCA Kuala Lumpur field, adjacent to KL Sentral.

Chief Safety Officer, AirAsia Group, Captain Ling Liong Tien said: “We are thrilled to be the first in Malaysia to win approval from CAAM for the accreditation of our remote pilot training organization (RPTO). The team has been working closely together with CAAM for months. We thank the regulator for their ongoing support and really look forward to starting our first class in coming weeks.

“The idea behind becoming an RPTO is to support the industry by providing quality remote pilot training leveraging our strong aviation background and decades of expertise. The UAS (unmanned aircraft system) has become an important element in many industries driving cost effectiveness and numerous efficiencies.

“Our commitment is to develop a strong foundation, supported by our existing robust safety management system, crew resource management and human factors training programs along with the remote pilot training modules – both in the class and out in the field,” he said.

The latest development supports the upcoming drone pilot project for the delivery of goods from airasia’s e-commerce platforms, using automated drones.

The approved training courses and links to apply are listed below:

  1. RCOC-B (Remote Pilot Certificate of Competency – Basic) (5 days) here

  2. RCOC Module 1 (EVLOS) (Extended Visual Line of Sight) (2 days) here

  3. SMS (Safety Management System) (3 Days) here

  4. CRM (Crew Resource Management) (2 Days) here

AirAsia Group reports a loss in the third quarter, launches Teleport

AirAsia Group Berhad reported its financial results for the quarter ended September 30, 2021 (“3Q2021”).

Unaudited Consolidated Third Quarter 2021 Results of AirAsia Group Berhad

The Consolidated Group posted 3Q2021 revenue of RM296 million, lower by 37% year-on-year (“YoY”) and 20% quarter-on-quarter (“QoQ”). Aviation revenue declined 70% YoY and 37% QoQ as travel demand was constrained by limited available flights caused by the lockdown imposed in Malaysia, since January 2021. Digital businesses reported stronger revenue, up 141% YoY led by contributions from Teleport, which tripled its revenue YoY driven by strategic growth in its cargo network.

EBITDA loss was RM281 million for the quarter, which narrowed by 38% YoY. Fixed costs were successfully reduced by 23% YoY, primarily attributed to lower staff costs and lower other operating expenses. The Consolidated Group ended the quarter with an improved cash position of RM401 million due to cash proceeds from Fly Leasing, funds from the convertible loan note into BigPay and tight ongoing control of costs. Net operating cash flow burn was lower YoY, averaging RM68 million per month in 3Q2021.

The airasia Super App reported 7% YoY revenue growth, attributed to new product offerings and commissions. BigPay posted significant growth in revenue, up 26% YoY driven by payments and remittances. Teleport’s revenue tripled YoY due to strategic growth of its cargo network to establish its presence in the market.

The Consolidated Group posted a 3Q2021 Net Loss Before Tax of RM1.11 billion, which narrowed by 4% YoY. Active capacity management and concentration on flying the most profitable routes as well as lease restructuring, asset optimisation, targeted cost control and the absence of any fuel swap loss, resulted in a 65% reduction in aviation operating expenses YoY. Overall, the loss was attributed to a shortfall in revenue and a foreign exchange loss of RM217 million in comparison to a foreign exchange gain of RM44 million in 3Q2020.

Operating Performance

AirAsia Philippines outperformed AirAsia’s other airline entities during the third quarter of 2021, reporting stronger YoY and QoQ key operational metrics. AirAsia Philippines demonstrated a strong performance in 3Q2021, posting 167% growth in the number of passengers carried YoY and a 5% increase QoQ. Load factor was healthy at 77%, attributed to active capacity management.

Revenue per ASK (“RASK”) for the Consolidated Group improved by 48% YoY to 21.83 sen during the quarter, while load factor was firm at 67%, 1 ppt higher YoY, supported by active capacity management.

Cost Performance

Airline operating expenses for 3Q2021 reduced by 65% YoY while fixed costs were efficiently reduced by 23% YoY and 15% QoQ. Airline staff costs declined the most by 38% YoY and 4% QoQ, contributed by headcount rationalization, salary cuts and natural attrition. Other operating expenses reduced by 11% YoY and 33% QoQ due to strict cost control measures implemented for marketing, rental and IT spend.

On the airline performance results and outlook, Group CEO of AirAsia Aviation, Bo Lingam said:

“Load factor for the Group remains healthy in 3Q2021 at 67%, up 1 ppt attributed to active capacity management to match demand. Growth during the quarter was driven by AirAsia Philippines which grew its passengers by 167% YoY and pushed the load factor up to 77%.

“AirAsia Malaysia, AirAsia Indonesia and AirAsia Thailand experienced subdued momentum QoQ due to limited operations as travel was restricted for the most part of the quarter. Nonetheless, in a month-on-month (MoM) breakdown, AirAsia Malaysia more than doubled the number of passengers carried in September as compared to August, which resulted in a 13 percentage point (“ppt”) higher load factor improvement. The encouraging growth was primarily driven by the opening of the Langkawi travel bubble from 16 September. Since then, we have observed a continuous improvement in bookings, as travel demand gradually recovers following the authorization of nationwide interstate and some limited international travel, since 11 October onwards.

“Aside from Malaysia, recent positive developments for air travel across Thailand, Indonesia and the Philippines have contributed to a significant increase in seats sold for immediate and near-term travel, in line with our expectation of stronger bookings for spontaneous travel due to pent-up demand. The upcoming year-end holiday season will further spur air travel demand, especially in the visiting friends and relatives (VFR) as well as the leisure and spontaneous travel markets. We expect to see a continuation of this upward trend throughout 4Q and well into 2022 as global travel restrictions continue to ease. Our aim is to fly 60% of our pre-Covid domestic flight capacity by December 2021.

“We continued to improve our cost base through stringent cost containment measures. Our 3Q2021 fixed costs reduced 23% YoY, as airline staff costs were down 38% YoY due to headcount rationalization & attrition. Other operating expenses reduced by 11% YoY and another 33% QoQ due to strict cost control measures implemented for marketing, rental and IT spend. We have been reporting a zero fuel swap loss since 2Q2021.

“Many countries have started to reopen and allow vaccinated travelers in. Most recently, the governments of Malaysia and Singapore announced the commencement of the Vaccinated Travel Lane (VTL), which paves the way for a gradual flight resumption between these two countries. We look forward to kick starting our Kuala Lumpur-Singapore flights at the end of this month and we are hopeful of the establishment of similar initiatives in other key markets in the near future.

“We continue to work closely with the authorities to ensure that the highest standards of health and safety are maintained at all times. In addition, we have also implemented numerous contactless innovations and procedures to provide a more hygenic and and seamless travel experience for our guests and to help restore consumer confidence in air travel.

“With our robust short haul business model, lean operations, contactless procedures, optimized network, strong dominance in Asean combined with pent-up demand, vaccines and travel lane formations, we remain confident of a fast recovery upon the further relaxation of travel restrictions in the near future.”

On Asia Digital Engineering (ADE)’s performance and outlook, CEO of ADE, Mahesh Kumar said:

“Asia Digital Engineering is actively ramping up its service offerings to become the leading maintenance repair and overhaul (MRO) provider in Asia. In 3Q2021, ADE obtained foreign approval from the Indonesian authority to conduct base maintenance works in Malaysia. ADE also received the relevant approvals to carry out base maintenance services for the A320neo aircraft type in Malaysia. While rapidly expanding its service capabilities, ADE expects to receive a number of additional approvals by the end of 2021. To further support our expansion plan, we have embarked on a fundraising exercise which is expected to complete by the end of first half next year. Having successfully completed the first cargo-on-seat conversion for Teleport and carried out the first ka-band installation for airasia wifi, ADE is actively exploring strategic partnerships and collaborations with service providers, including an inflight broadband solution, to further enhance its position as a one-stop solution for all MRO requirements.”

On airasia Super App’s performance and outlook, CEO of airasia Super App, Amanda Woo said:

“It’s a new era for the airasia Super App. We have just reached our one year milestone in October and we are on the right track to becoming the all in one travel and lifestyle platform of choice in Asean. We have launched many products and services in our first year, starting in Malaysia and we remain committed to bring the new airasia way of life to our many millions of users across the region in the near future. In 3Q2021, we acquired the Gojek business in Thailand for a share swap consideration, which valued airasia superapp at US$1 billion and kick started the rollout of our products and services in the Kingdom.

“We also launched airasia ride in Klang Valley, which gained substantial traction and closed more than 40,000 bookings within the first month. Soon after, we expanded airasia ride to Langkawi and Penang, and passengers can now book their rides while they are on our flights that are equipped with airasia wifi.

“Airasia Super App revenue increased by 7% YoY while our average monthly active users increased by 40% QoQ, driven by food and ride offerings.

“The aim is to deliver a seamless one stop travel and lifestyle experience for our users. As we continue to grow and evolve based on consumer demand, we revamped airasia fresh into airasia grocer and expanded both airasia grocer and airasia food into more cities. Our new product, airasia money, gained further traction with digital car insurance offerings.

“As expected, our Travel vertical saw higher bookings as travel restrictions were lifted. In September, the Travel vertical recorded 400% higher transaction volume MoM drive by Flights, Hotels and SNAP. Last month, we celebrated the gradual reopening in travel by strengthening our OTA positioning, connecting users to 700 international airline brands flying to over 3,000 destinations and promoting more than 300,000 hotels worldwide through the convenience of our single app. Just last week, we launched FACES, which is truly a game changer for fully integrated contactless travel and lifestyle experiences. It is an exciting time for us and we look forward to launching more products, partnerships and collaborations for the benefit of our users.”

On Teleport’s performance and outlook, CEO of Teleport, Pete Chareonwongsak said:

“Teleport’s revenue tripled YoY and increased 2% QoQ, lifted by a strategic growth in its cargo network. Delivery volume grew 53% YoY and 49% QoQ to more than 300,000 in 3Q2021. Margins improved for the quarter through active optimization of the cargo network.

Most recently, Teleport (Kuala Lumpur) launched its first dedicated 737-800 freighter, which will accelerate its goal to shift from a pure air freight logistics player to a complete multi-modal operator.

Stationed in Bangkok, the freighter allows us to be able to reach key markets including Hong Kong, Shanghai, Chennai, Mumbai and all other major destinations in Southeast Asia. We are fully committed to meet growing air cargo needs in the region by enhancing our capabilities and strengthening our position in the market. We are also in the midst of our first fundraising initiative which is expected to complete by the end of the year.”

Teleport, the logistics venture of airasia Digital, further reinforces its position as a formidable regional player in the cargo and logistics business with the launch of its dedicated 737-800 Freighter on November 3, 2021, including the unveiling of its unique livery.

The new aircraft’s livery design reflects the brand colors of Teleport as the dedicated freighter prepares for its first flight across key routes in Asia. The new design represents Teleport’s service philosophy, signaling its commitment towards further establishing Teleport and the AirAsia Group as amongst the Top 3 cargo operators by capacity in Asean.

The addition of the dedicated freighter, brings Teleport’s current active fleet to a total of 252 planes (including AirAsia Group’s passenger planes) and will enable greater consistent capacity on key air cargo routes across Southeast Asia.

Since the start of 2020, Teleport has set out to build a cargo-only network across the key air cargo lanes in the region to cater for the increasing e-commerce and general cargo demand. Teleport will continue to enhance its capabilities to compete in the fast growing, cargo and e-commerce markets across Asean.

On the group’s outlook, CEO of AirAsia Group Berhad, Tan Sri Tony Fernandes said:

“As a Group, we have taken advantage of the downtime in flying to tap new revenue streams and fully transform ourselves into an investment holding company with a portfolio of synergistic travel and lifestyle businesses. In just over a year and a half, Asia Digital Engineering, Airasia superapp, Teleport and BigPay have gained significant traction and established a strong presence in our key markets. As the world continues to open up and a strong recovery in air travel is on the horizon, we have ensured our portfolio companies are given autonomy to run their business independently to encourage innovation and ensure speed to market through even higher efficiency. Together as a group, each of our businesses continue to leverage significant data and industry leading technology to deliver the best value at the lowest cost, supported by one of Asia’s leading brands that remains committed to serving the underserved.

“As for funding, we are pleased to share that we have received shareholder’s approval for the proposed renounceable rights issue of up to RM1 billion, at the Extraordinary General Meeting held on 11 November 2021. We expect to complete the exercise by the end of this year. We have also completed two batches of lease restructuring and expect to complete the full exercise by the end of 2021. This will positively result in a lower lease rental per aircraft in the future. Additionally, we have received the approval from Danajamin Nasional Berhad (Danajamin) for an 80% guaranteed loan of up to RM500 million under the Danajamin Prihatin Guarantee Scheme and an approval from a foreigner lender for a US$150 million loan facility of which US$100 million has been drawn down. While we continue to evaluate further funding, potential monetization and other corporate exercises, as for now we expect to have sufficient liquidity until year end and throughout 2022.”

AirAsia is interested in a potential Airbus A321neo freighter

From Reuters:

“AirAsia Group Bhd is in talks with Airbus SE about its interest in the manufacturer developing a new freighter version of its A321neo passenger plane.

AirAsia would seek to convert a “meaningful chunk” of its 362 orders for the passenger version of the A321neo narrow body to a dedicated freighter.”

More:

https://www.reuters.com/business/cop/airasia-interested-potential-airbus-a321neo-freighter-exec-2021-11-03/

AirAsia restructures its airlines under AirAsia Aviation Limited

AirAsia made this announcement:

As AirAsia’s rapid transformation from an airline into a digital travel and lifestyle services group continues to gain strong momentum, the holding company for the airline Group has been officially renamed AirAsia Aviation Limited.

Bo Lingam, formerly President (Airlines) for AirAsia Group, takes over as Group CEO of AirAsia Aviation Limited, overseeing the four airlines in the Group (AirAsia Malaysia, AirAsia Philippines,  AirAsia Thailand and AirAsia Indonesia).

AirAsia Group Berhad (AAGB) is the investment holding company for the eight digital portfolio companies that leverage data and technology to deliver the best value at the lowest cost.  AAGB’s comprehensive portfolio includes AirAsia Aviation, the airasia Super App, cargo and logistics venture Teleport, BigPay financial services, the edutech arm AirAsia Academy, engineering company Asia Digital Engineering, ground services division GTR and the restaurant chain and food group called Santan.

Group CEO of AirAsia Aviation Limited Bo Lingam

Group CEO of AirAsia Aviation Limited Bo Lingam

Group CEO of AirAsia Aviation Limited Bo Lingam said: “This structural change helps facilitate strong projected growth in both airline and non-airline portfolio businesses.

“The AirAsia Aviation Limited entity holds our existing airline investments and paves the way for new airline ventures to be formed in due course. We have also established a new AirAsia Consulting division tasked at reviewing new airline partnerships and franchise opportunities.

“By creating this airline holding company we can focus on continuing to be the world’s best low cost airline. We have spent the past 18 months reviewing every aspect of the operation to ensure that our airlines will return stronger than ever before. The world is finally opening up and we foresee a V-shaped rebound in air travel in the near future.  In Malaysia, we are already seeing huge pent up demand for air travel since the government’s recent announcement of the resumption of interstate travel on 11 October. We are operating over 60 daily flights to 16 key leisure destinations and more frequencies and routes will continue to be added in response to significant consumer demand.

“Pleasing progress is also underway in our other airlines in Thailand, Indonesia and the Philippines as services are resuming in line with accelerated vaccination rates and the easing of travel restrictions in our key markets.

“To ensure the safety of our staff and guests, we are also implementing stringent health and safety measures, with the highest standards of hygiene.

“We look forward to the opening of international borders as the next key milestone. We will continue to review new markets to operate from in the future, like Cambodia for example, when we can connect Asean once again with the best value fares and lifestyle offerings.”

AirAsia converts its remaining Airbus A320 aircraft orders to the A321neo

AirAsia Group has reaffirmed its commitment to transform its present mainly-A320 aircraft fleet to the higher-capacity, more fuel-efficient Airbus A321neo with the signing of an amendment agreement with Airbus S.A.S., in which AirAsia will convert its remaining A320 aircraft orders to the A321neo.

The contract marked AirAsia’s commitment to purchase the largest model in the best-selling A320 Family. Seating up to 236 passengers in a single class layout, the A321neo will enable the airline to increase capacity while benefiting from the lowest operating costs in the single aisle category. Equipped with Airbus’s Space-Flex Cabin that allows for a more efficient configuration of the cabin space, the A321neo delivers an optimal passenger comfort and efficiency.

With the conversion of its remaining 13 A320 undelivered aircraft to the A321neo, AirAsia now has a total order of 362 A321neo aircraft that will be allocated based on demand among its airlines within the Group, with deliveries up until 2035, as agreed between AirAsia and Airbus.

AirAsia received its first A321neo in November 2019 and currently has a total of 4 A321neo in service.

At present, the Group has a total fleet size of 211 aircraft comprising 169 A320, 38 A320neo and 4 A321neo aircraft.

AirAsia will only accept fully-vaccinated passengers on its flights

AirAsia has made this announcement:

In preparation for the full resumption of its domestic and subsequently international flight services, AirAsia Malaysia (flight code AK) has made it mandatory for only completely vaccinated adult guests to be allowed to board its flights, effective immediately. Guests under the age of 18 if unvaccinated or partially-vaccinated must be accompanied by fully-vaccinated parents or guardian.

This is part of the airline’s Covid-19 mitigation plan to ensure the highest safety standards for all guests and employees. All AirAsia flights are operated only by fully-vaccinated crew and this applies to ground operations and baggage handling staff as well.

AirAsia has also made it mandatory for all guests to check-in via the airasia Super App as this allows them to pass through the airport clearance and boarding process with an e-Boarding Pass that will significantly reduce physical interaction including via paper and is key in curtailing the spread of Covid-19 and other viruses. Subject to certain exceptions, check-in fees shall apply for check-in at the airport check-in counter.

Guests just need to download the airasia Super App on their smartphones and make full use of the app. Apart from checkin-in, it is the only all-in-one app that guests would need for their journey – from flight to hotel bookings, checking in, health document verification, through to boarding with the e-Boarding Pass, contactless boarding with FACES and inflight services onboard.

AirAsia has undertaken numerous contactless technological innovations and improvements that provide for enhanced comfort and a hassle-free door-to-door experience for guests.

AirAsia Malaysia CEO Riad Asmat said: “The decision to accept only fully vaccinated guests for boarding is made in the best safety interest of our guests and employees. All our flights are operated by only fully-vaccinated pilots and cabin crew and this applies to all our ground services as well. We have also put in place numerous service enhancements and integration via the airasia Super App.

“Guests can look forward to a convenient and seamless self-check-in process via the Super App that allows for easy uploading and instant verification of health and vaccination documents, and contactless boarding via FACES facial recognition system. All these will  minimise queuing and possible physical contacts at the counters and crowding at the airport.”

AirAsia has robust procedures in place to maintain the highest safety standards at all times. Built-in safety features of the aircraft itself, where the cabin air circulation and filtration provides hospital-grade airflow, ensures flying continues to be the safest mode of transportation, as proven by various international studies.

Before you book your flight with AirAsia, please take note of the following requirements to ensure a smooth travel experience:

  • Ensure that you (and your family) are eligible to travel. Please check on any travel restrictions or special requirements for travel to your destination, including health documents and full vaccination certificate. These requirements may change from time to time so we advise that you check with the authorities for the latest updates.

  • Ensure that you are fit to travel. If you are experiencing any flu-like symptoms, do not proceed with your travel plans. As a responsible traveller, we encourage you to perform a Covid-19 self test before your flight to ensure that you are safe to travel and protect others you may get in contact with throughout the journey.

  • Only fully-vaccinated guests are accepted to board AirAsia flights. You have to be fully vaccinated and have passed the vaccination maturity period as well as classified as “Low Risk” or “Casual Contact with No Symptoms” status under MySejahtera in order to be accepted for boarding.

  • AirAsia has made check-in via the airasia Super App mandatory to minimise physical contact and crowding at the airport. You can easily do this via the airasia Super App as early as 14 days before your departure date. Simply scan or upload any required vaccination or health documents during the online check-in process for real-time verification.

    Please note:

    • Counter check-in service will only be available for guests with reduced mobility, those travelling with an infant (under 24 months of age), and young guests travelling alone.

    • A counter check-in fee will apply to guests not specified above. 

  • Arrive early at the airport. Guests are encouraged to arrive preferably 4 hours before departure to allow for enough time for all the necessary processes to take place. Support staff will be on stand-by to guide guests and assist with any queries.

  • Wear a face mask before, during and after the flight. The regular 3-ply mask will do, or you may opt for double-masking for better protection. Masks with an open valve are not permitted onboard AirAsia flights.