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AirAsia X and GEODIS add capacity in Southeast Asia

AirAsia X and GEODIS have started regular cargo flights to provide capacity and generate revenue during the downtime in commercial flying.

Initially running for six months, AirAsia will provide regular cargo flights between Kuala Lumpur, Hong Kong, Chennai, Shanghai and Sydney.

Through its hub and spoke model, including the ability to switch transport mode in Kuala Lumpur, GEODIS will make use of its road network to move cargo from its flights across Southeast Asia.

Benyamin Ismail, CEO of AirAsia X Malaysia says the airline wants to capitalise on high air cargo rates, saying: “Cargo revenues were four per cent of our total revenues pre-Covid. It has been our lifeline over the past two years. We expect that our cargo operations moving forward will contribute at least 40 to 50 per cent of our total revenue. Importantly we are now perfectly hedged to take advantage of the huge surge in air transport demand.”

Onno Boots, President and CEO – Asia Pacific of GEODIS says: “These new intra-APAC flight routes represent our 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.”