AirAsia X Expands Cargo Footprint With Global Logistics Provider Geodis

AirAsia X has announced a partnership with global leading transport and logistics provider GEODIS, in its effort to increase cargo capacity and more importantly boost revenue for the ailing airline.

According to statements released, the agreement is set to run for an initial period of six months commencing from January 2022 with further extensions to be contemplated. Under the agreement, AAX will provide regular dedicated scheduled cargo flights between Kuala Lumpur and Hong Kong, Chennai, Shanghai, and Sydney.

Geodis is a global logistics provider headquartered in France, it has an extensive footprint in the Asia Pacific, through its hub and spoke model, including the ability to switch transport modes at the Kuala Lumpur facility, AAX also benefits from GEODIS’ expansive road network ensuring that cargo from its flights to Singapore, Malaysia, Thailand, and Vietnam are able to be transported across the whole of Southeast Asia.

The group says this will be the first of many that will be finalised in the coming months, this augments the significant short-term cargo charters completed in recent months and will represent a rapid financial turnaround post a comprehensive successful restructuring of the airline.

CEO of AirAsia X Malaysia, Benyamin Ismail said: “We expect that our cargo operations moving forward will contribute at least 40 to 50 percent of our total revenue. 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.

For Geodis, the new intra-APAC flight routes represent its sustained commitment in bringing customers highly reliable and cost-effective solutions, allowing them to fully optimise the e-commerce boom. “We look forward to working in partnership with AirAsia X to strengthen its logistics footprint. said CEO Onno Boots.

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