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  • AirAsia Group to bring back 4 aircraft by the end of 2021

    AirAsia Group to bring back 4 aircraft by the end of 2021

    AirAsia Group updated its 2021 fleet plans. The parent company of five airlines across Malaysia, Indonesia, Thailand, the Philippines, and India aims to end 2021 with 235 aircraft.

    AirAsia Group forecast that all its airline entities will see a gradual pick up in domestic in Q4 2021, led by the global increase in vaccination rates and relaxation of rules for air travel. The group has already noticed promising trends in its load factor, which reached 68% in Q2, 2021, compared to 59% in the same period of 2020.

    The company predicted that the “robust short-haul business model”, as well as lean operations coupled with “pent-up demand”, should ensure AirAsia Group a “quick recovery upon relaxation of travel restrictions,” the group stated in briefing slides.

    “We expect to see a strong resurgence in the visiting friends and relatives as well as the leisure and spontaneous travel markets first,” AirAsia Group said.

    To meet the forecast demand for air travel, the group decided to update its fleet plan. In May 2021, it estimated it would have 231 aircraft by December 2021, now the company‘s plans have changed. AirAsia Group now aims to bring back 4 aircraft, bringing the total number to 235 jets by the end of 2021.

    According to the company, “two third-party leases” of unspecified type aircraft will rejoin the group’s fleet in Q4 2021. Meanwhile, another two Airbus A320 jets, which were temporarily grounded amid pandemic, will return to active operations in Q1 2022.

    “Our network plans are continuously revised to reflect the latest recovery timeline following the ongoing pandemic impact,“ the group added.

    However, the company will still fly 10 jets fewer than in end-2020.

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  • AirAsia extends unlimited flights

    AirAsia extends unlimited flights

    As IATF Resolution 136-F allows interzonal travel from GCQ to GCQ or GCQ to MGCQ areas subject to restrictions of the local government unit of destination and strict health and safety protocols such as the presentation of a negative RT-PCR test upon arrival, AirAsia Philippines is giving its 12,000 UNLI Flight Pass holders great value for money and great ease especially with the return of leisure travel in the National Capital Region.

    Beginning September 8-30, 2021, AirAsia will start to fly travelers to Cebu, Davao, Zamboanga, Panglao, Tacloban and Caticlan.

    UNLI Flight Pass’ is extended until 17 January 2022.  Consequently, the travel period has been extended from 30 October 2021 to 31 January 2022.

    In a press release, AirAsia Philippines said UNLI Flight Pass was tremendously welcomed by travel enthusiasts, mostly young professionals and families during its launch in November 2020.  It has also become the travel partner of essential travelers and Authorized Persons Outside Residence such as medical frontliners and members of the uniformed services like different branches of the Armed Forces of the Philippines, Philippine National Police, Philippine Coast Guard, Bureau of Fire Protection and Bureau of Jail Management and Penology.

    More than 5,400 flights have been booked using the UNLI Flight Pass to leisure destinations such as Boracay, Cebu and Bohol.  However, AirAsia reminds the public that the promo is also open to all their domestic destinations including Davao, Cagayan de Oro, Zamboanga and General Santos City.

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  • Airasia Staff 100 vaccinated and ready to fly

    Airasia Staff 100 vaccinated and ready to fly

    AirAsia Group is ready to fly with its operating crew and frontline staff 100 percent vaccinated. And that is just part of the story with the airline group having a host of contactless safety and hygiene measures in place to ensure the highest standards are maintained ahead of a resumption of air travel.

    Group CEO Tony Fernandes said “we are ready to fly and as part of our strict safety policy we are mandating that all of our operating crew and frontline staff serving guests, including pilots, cabin crew, and airport staff are fully vaccinated to return to work.

    “We’ve always been about the people and it doesn’t just stop with our own Allstars (employees). With stringent health and hygiene protocols and robust standard operating procedures, guests can be assured of a 360-degree peace of mind when traveling with us again.

    “The acceleration of vaccines in all of our key markets is setting us up for a strong return to the skies. More than 50 percent of the adult population in Malaysia is now fully vaccinated, and Malaysia is tracking to have at least 80 percent of its population vaccinated by the end of 2021. We are also seeing promising progress in Singapore, Korea, and the Philippines.

    “More than 50 countries in the world have begun to welcome vaccinated travelers again. As ASEAN accelerates the vaccination effort, we are hopeful that countries will soon ease travel restrictions for vaccinated travelers for both domestic and international travel and will resume plans for travel bubbles.

    “Thanks to vaccines being aggressively rolled out in all of our key markets, better testing and education, the end is in sight and I’m hopeful we will be able to return to the skies in the near future. Importantly, we are fully prepared and ready for take-off,” Mr. Fernandes said.

    The AirAsia Group was one of the first airlines worldwide to achieve the top 7/7 rating for being Covid-19 ready by Airlineratings.com.

    All of the airlines in the Group are IOSA accredited which is the global benchmark for upholding the highest safety standards says the AirAsia Group.

    AirAsia says it has used downtime in flying to implement robust procedures and innovations to make flying even safer and more hygienic than ever.

    A new check-in feature enables guests to verify any required medical documents in real-time online before heading to the airport and the airline Group is in the process of rolling out biometric facial recognition technology at key ports commencing with klia2 in the near future.

    AirAsia will soon have its check-in system integrated with the Malaysian government’s MySejahtera digital health app to enable a seamless and hassle-free check-in procedure.

    “With all the uncertainties Covid-19 has provided, one thing I am sure of is that we will return to the skies soon with a more robust and viable business model which isn’t solely reliant on airfares alone as our digital transformation to become the ASEAN super app of choice is now fast becoming a reality,” added Tan Sri Tony.

  • AirAsia Thailand returns with 11 domestic routes from Sept 3

    AirAsia Thailand returns with 11 domestic routes from Sept 3

    AirAsia Thailand will return to the skies starting with domestic flights beginning Sept 3, 2021 following an announcement by the Civil Aviation Authority of Thailand allowing the operation of regulated flights.

    The reinstatement of flights by AirAsia Thailand will kickstart with 11 domestic routes from Don Mueang Airport to Chiang Mai, Phuket, Hat Yai, Nakhon Si Thammarat, Chiang Rai, Khon Kaen, Udon Thani, Ubon Ratchathani, Nakhon Panom, Roi Et and Narathiwat.

    AirAsia Thailand is offering a 30% discount on all seats for all flights including weekends and public holidays to celebrate the restart of its domestic operations. Book from Aug 28- Sept 5, 2021 and travel from Sept 3 Dec 31, 2021 at the airasia super app or visit airasia.com.

    All bookings come with an unlimited free flight change option while all flights will be operated under stringent adherence to health and safety protocols set by the government to ensure the comfort and safety of all guests.

    AirAsia Thailand Chief Executive Officer, Santisuk Klongchaiya, stated that while AirAsia Thailand hibernated all its flights throughout August in accordance with government announcements, it remained busy at work, preparing to return to service.

    All aircraft undergo regular maintenance during hibernation to ensure they are in top performance. The carrier has been working very closely with the Civil Aviation Authority of Thailand, Thai Airlines Association and other relevant public health agencies to ensure only the highest of safety and hygiene standards are in place when it resumes operations.

    From September 2021, guests will be required to meet Civil Aviation Authority of Thailand conditions in accordance with the criteria specified in the travel conditions of the destination provinces, such as to present the documents indicated of having complete cycle of vaccination and/or have documents showing results of testing for Covid-19 by RT-PCR or Antigen Test Kit (ATK), or are exempt from other measures in the destination province (such as having a document certifying that they have been naturally recovered from the infection for no more than 90 days, or have a document certifying that they have passed the quarantine requirement, or have documents for the implementation related to the country’s initiative Sandbox Project).

    Passengers are also mandated to declare their essential travel information via https://covid-19.in.th/ prior departure.

    The airline will also be maintaining stringent health and safety measures, including regular disinfection of all contact surfaces, limiting flights capacity to a maximum of 75% passengers on each flight, onboard food and beverage consumption is yet not allowed throughout the journey, and not more than 50 passengers allowed to be in the transfer bus each round to maintain social distancing and limiting contact.

    All AirAsia aircraft are equipped with hospital-grade HEPA filters that are able to filter out 99.99% of viral and bacterial particles in the air.

    The measures are including service personnel, that all staff on duties must be fully vaccinated against Covid-19 and be tested for Covid-19 according to the regulations. Pilots go through regular recurrent training and aircraft are well maintained.

    Flight and ground crew have been strictly trained to ensure the safety and wellbeing of guests at all times.

    In September 2021, AirAsia will begin its return to service with 11 routes before considering further flights.

    The flights are being introduced with a promotion of 30% off all seats on all flights, every day including weekdays and holidays. Bookings will come with unlimited flight change option that can be done conveniently through the Booking Management Menu or AVA Live Chat at no charge.

    Safety of staff and guests is always the top priority for AirAsia Group, which was one of the first airlines worldwide to achieve the top 7/7 rating for being Covid-19 safe by the aviation experts at Airlineratings.com.

    All of the airlines in the Group are IOSA accredited which is the global benchmark for upholding the highest safety standards at all times. Furthermore, the airline has used the downtime in flying to implement robust procedures and innovations to make flying even safer and more hygienic than ever.

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  • Philippines AirAsia to resume international flights by 1Q22

    Philippines AirAsia to resume international flights by 1Q22

    Philippines AirAsia intends to restart international flights by the first quarter of 2022 after resuming domestic services in the fourth quarter of 2021, says chief executive officer Ricky Isla.

    He told The Philippine Star newspaper that the airline’s priority is to rebuild its domestic network from Manila Ninoy Aquino Int’l, manage capacity, and control costs. “What is important is (that) we have to maintain our cost of operations. That’s the reason why we’re concentrating right now mostly on our Metro Manila hub.”

    The airline will look to restart flights from its hub at Clark in mid-to late 4Q21. “We will most likely reopen with our Clark trips towards the peak season of November and December,” he told The Philippine Star. “The best time is when there is already what you call a good herd immunity in Manila and Central Luzon like Clark. Then we will be confident that we will be extending also our Clark hub as our point of destination,” he said.

    The AirAsia Group unit has been conducting only essential flights recently in light of the government’s directive to place the capital Manila, officially called the National Capital Region (NCR), under quarantine with heightened restrictions from July 30, 2021, to August 5, 2021, and enhanced quarantine from August 6 to 20, 2021. This has meant that only people authorized to be outside their residences were allowed to travel into and out of the NCR, including Cavite, Bulacan, Laguna, and Rizal. Inbound travel to Iloilo City, Iloilo Province, and Cagayan de Oro City was also suspended from August 1 to 7, 2021, to manage the spread of the Delta variant of COVID-19.

    From August 21, 2021, the airline is scheduled to resume domestic services from Manila to 12 domestic cities, namely Bacolod, Cagayan de Oro Laguindingan, Caticlan, Cebu, Davao, General Santos, Iloilo, Kalibo, Puerto Princesa, Panglao, Tacloban, and Zamboanga, the ch-aviation schedules module shows.

    From October 1, it is scheduled to resume services to seven domestic points from Clark, including Cagayan de Oro Laguindingan, Caticlan, Cebu, Davao, Iloilo, Puerto Princesa, and Tacloban, according to ch-aviation data.

    Isla said the company also sought to strengthen its cargo business. “Cargo also has to expand its customer experience. Before, it was just airport to airport, now you have airport to your point-of-destination, and airport up-to-the-household,” he said.

    Before the latest lockdown, AirAsia had carried 171,543 passengers between April and June 2021, an increase from 168,527 passengers carried in the first quarter of 2021. Year on year, this represented a 489% jump from the 29,111 passengers carried in the second quarter of 2020. The carrier has operated more than 600 chartered repatriation flights since last year.

    Philippines AirAsia reported that 92% of its flight operations team, including pilots and cabin crew, plus 86% of its ground staff, have been vaccinated against COVID-19.

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  • AirAsia Super App launches Bangkok food service as it expands across ASEAN

    AirAsia Super App launches Bangkok food service as it expands across ASEAN

    AirAsia Group’s digital arm has launched a food-delivery service in Thailand as it ramps up its non-airline business operations to mitigate falling demand for travel during the Covid crisis.

    AirAsia Digital operates Super App that has already been downloaded more than 50 million times and the company says it now has 75 million people using it across Singapore, Malaysia and Thailand.

    Last month, the company bought the Thai operations of Indonesian ride-hailing app Go-Jek which gave it instant market share in passenger transport and delivery services in the market.

    At that time, Air Asia CEO Tony Fernandes said the company had already created a complete digital economy ecosystem. “We have successfully established over 15 different non-airline products and lifestyle services on our digital e-commerce platform in Malaysia. Now it’s time to take it to the next level. In response to overwhelming regional demand, we are setting our sights on bringing our Super App offerings to all of our key markets, following the successful rollout in Thailand.”

    Other features of the app include digital motor vehicle insurance, financial services, travel, lifestyle and rewards, flight and accommodation bookings, beauty, health, and content services.

    With the Thai launch this month, the Super App is offering 30,000 free meals for 30 days for users in four parts of Bangkok: Din Daeng, Chatuchak, Lat Phrao, and Huai Khwang. Partners in that program include McDonald’s, Flash Coffee and Cafe Amazon.

    The app plans to expand service delivery across more areas of Bangkok during the coming weeks.

    “AirAsia food marks the beginning of our digital revolution in Thailand, and we are currently preparing for courier, grocery, ride-hailing and beauty services, which will be launched in coming weeks,” said Amanda Woo, AirAsia Super App CEO.

    “The Covid-19 pandemic has permanently reshaped our everyday lives, food delivery and take-outs have undeniably become an integral part of our consumption behaviour. The key goal of AirAsia Super App is to be the best value one-stop travel and lifestyle application for everyone and every need.

    “AirAsia Super App aims to rise as the e-commerce marketplace of choice for everyone in ASEAN, be it for travel, food delivery or logistics.”

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  • Thai AirAsia suspends flights, cuts pay packets

    Thai AirAsia suspends flights, cuts pay packets

    Thai AirAsia (TAA) has suspended all flights this month and deferred paying its staff either wholly or partially until September.

    The airline, regarded as one of the most robust domestic carriers, has faced a financial crunch from consistently low passenger volumes since the Covid-19 pandemic began early last year. All domestic airlines including this one also suffer from a lack of cash flow.

    The airline stopped flying after the restrictions were launched last month. It says all flights will stay grounded for now after efforts to secure loans were in vain.

    Another factor in the decision to keep flights grounded is that the latest lockdown order includes travel restrictions. The wider aviation business in the country is also facing depleted liquidity and cash flow.

    TAA announced a deferment of the whole or part of the salaries of its employees as part of an effort to ease cost pressures.

    The July salaries for executives will be paid in September. Active employees at operational levels will be paid 50% of their July salaries this month and the rest in September. Inactive employees will receive 25% of their salaries in September as well.

    The TAA said it will temporarily cease operations this month and hopes the situation will turn around next month. Once the airline has secured a loan, operations will resume.

    Also, Thai Lion Air, another budget carrier, said it is looking to offer financial assistance to its staff after it suspended flights on July 21.

    Meanwhile, the International Air Transport Association (IATA) called on governments to take action to address the high cost of Covid-19 tests in many jurisdictions.

    It also urged flexibility in permitting the use of cost-effective antigen tests as an alternative to more expensive PCR tests.

    According to IATA’s most recent traveller survey, 86% of respondents are willing to get tested. But 70% also believe that the cost of testing is a barrier to travel, while 78% believe governments should bear the cost of mandatory testing.

    “The IATA supports Covid-19 testing as a pathway to reopen borders to international travel,” said IATA Director-General Willie Walsh.

    In addition to being reliable, testing needs to be easily accessible, affordable, and appropriate to the risk level. Too many governments, however, are falling short on some or all of these, he said.

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  • Airasia Philippines sees better performance in Q2

    Airasia Philippines sees better performance in Q2

    AirAsia Group Berhad announced on Wednesday that its Philippine unit, Philippines AirAsia, Inc., saw a 2% increase in passengers carried in the second quarter of the year.

    “AirAsia Philippines’ strong rebound seen in 1Q2021 (first quarter) further increased in 2Q2021 (second quarter), posting a 2% higher number of passengers carried quarter-on-quarter and 4 percentage points higher load factor to record a solid 78%,” AirAsia Group Berhad said in an e-mailed statement.

    “Monthly breakdown showed that load factor was as high as 83% in June 2021, boosted by active capacity management,” the airline group noted.

    “This was despite running a limited number of charter and passenger flights due to community quarantine restrictions and despite flying only from its Manila hub,” it added.

    AirAsia also said that expectation of high vaccination rates in Southeast Asian countries by the end of 2021 is lending confidence on upcoming recovery, supported by its “robust short-haul model in addition to leaner and more stabilized operations.”

    The group has said it expects domestic operations in the Philippines to be below 25% of pre-pandemic levels until at least September while the population awaits widespread vaccination against the coronavirus disease 2019 (COVID-19).

    Philippines AirAsia announced last week its plan to restore its hub in Clark by the fourth quarter of the year.

    AirAsia said it started its Philippine operations in Clark in March 2012.

    “Pre-pandemic, Philippines AirAsia flew to 10 domestic and three international destinations from Clark namely, Cagayan de Oro, Caticlan, Cebu, Davao, Iloilo, Puerto Princesa, Tacloban, Incheon, Kaohsiung, and Taipei,” it said.

  • AirAsia group says Q2 was improved

    AirAsia group says Q2 was improved

    AirAsia Group said its operating statistics for the second quarter of the 2021 financial year were improved during the quarter. All four key operating entities of AirAsia posted year-on-year (YoY) improvements during the quarter, on the back of a low base in the corresponding quarter last year as the group’s fleet were hibernated for the most part of 2Q2020 following the hit of the COVID-19 pandemic since late 1Q2020.

    As for quarter-on-quarter (QoQ) performance, AirAsia Philippines saw a 2 percent increase in number of passengers carried and 4 percentage points (ppts) increase in load factor to reach 78 percent, while AirAsia Indonesia’s load factor increased by 11 ppts QoQ. AirAsia said it remains committed to strengthening its domestic foothold while awaiting positive developments on international air travel. Expectation of high vaccination rates in ASEAN countries by the end of this year is lending confidence on upcoming recovery, enhanced by the group’s short-haul model in addition to leaner and more stabilised operations.

    AirAsia Malaysia’s operations remained constrained QoQ due to a lockdown and interstate travel restrictions imposed from January 2021. AirAsia Malaysia carried 64 percent higher number of passengers YoY on 54 percent higher capacity, subsequently resulting in a 4 ppts increase to a healthy load factor of 64 percent. The ongoing subdued operations are expected to persist until Malaysia reaches herd immunity by the fourth quarter of this year. The government has recently set a new target of vaccinating all adults by October 2021.

    AirAsia Indonesia posted substantial YoY growth against the same quarter last year. Though the number of passengers carried showed a mild 1 percent dip QoQ, load factor grew by 11 ppts to 67 percent in 2Q2021 due to more stringent capacity management. AirAsia Indonesia was operating approximately 70 percent of pre-pandemic domestic capacity in May 2021 and demonstrated strong signs of recovery before it had to enter hibernation mode in early July in support of the containment efforts by the government as infection cases increased.

    AirAsia Philippines’ strong rebound seen in 1Q2021 further increased in 2Q2021, posting a 2 percent higher number of passengers carried QoQ and 4 ppts higher load factor to record a solid 78 percent. Monthly breakdown showed that load factor was as high as 83 percent in June 2021, boosted by active capacity management. This was despite running a limited number of charter and passenger flights due to community quarantine restrictions and despite flying only from its Manila hub.

    AirAsia Thailand more than doubled the number of passengers carried YoY and reported a 9 ppts increase in load factor to 61 percent in 2Q2021, boosted by higher demand during the Songkran festival in April 2021 and on the back of low base effect in the same quarter last year. On a QoQ basis, despite having successfully resumed all domestic routes by the end of 1Q2021, AirAsia Thailand’s recovery was short-lived due to the new COVID-19 wave that began in mid-April 2021. AirAsia Thailand posted a 26 percent QoQ decline in passengers carried, most significantly in June. Nevertheless, load factor was held firm at 78 percent in June, attributed to active capacity management.

  • Philippines AirAsia to revive Clark hub end this year

    Philippines AirAsia to revive Clark hub end this year

    Philippines AirAsia plans to strategically restore its hub at Clark International Airport, northwest of the capital Manila, in October 2021, pending the easing of travel restrictions and an increase in travel demand, says Chief Executive Officer Ricky Isla.

    “Once travel restrictions ease and demand picks up soon, we are eyeing to strategically restore AirAsia’s Clark hub hopefully by Q4 of 2021,” he said in a statement, after joining Philippines President Rodrigo Roa-Duterte and other government and industry representatives in witnessing the inspection and dry-run of the airport’s new second passenger terminal (Terminal 2) building on July 19, 2021. Isla said the new terminal would boost the airline’s drive towards a stronger rebound post-COVID-19. Government representatives echoed his sentiment saying they hoped AirAsia Philippines would make a strong come-back in 4Q21.

    According to the ch-aviation schedules module, the AirAsia Group unit will restore flights from Clark on October 1, 2021, to the following domestic destinations:

    • 4x weekly to Cagayan de Oro Laguindingan;
    • daily to Caticlan;
    • daily to Cebu;
    • 4x weekly to Davao, increasing to daily frequencies by January 1, 2022;
    • 4x weekly to Iloilo (from October 2);
    • 4x weekly to Puerto Princesa; and
    • 4x weekly to Tacloban.

    AirAsia began its Philippines operations at Clark in March 2012, a move that helped push connectivity in northern and central parts of Luzon, the country’s largest and most populous island that also includes Manila. Before the pandemic, AirAsia Philippines flew to 10 destinations from Clark, including the domestic points being restored, and internationally to Seoul Incheon (South Korea), Kaohsiung and Taipei Taoyuan (Taiwan).

    Punted as Asia’s next premier gateway for North and Central Luzon, the new terminal is expected to relieve congestions at Manila Ninoy Aquino Int’l (NAIA), which has an annual capacity of eight million passengers. The new terminal will increase capacity at Clark to 12 million passengers annually and boost air transport capacity for the Greater Capital Region, including the cities of Angeles and Mabalacat within the Clark Freeport Zone in the province of Pampanga.

    Operated by the Luzon International Premier Airport Development (LIPAD) Corporation, the second terminal has been constructed at a cost of PHP12.55 billion peso (USD243 million). It forms part of the so-called “Build, Build, Build (BBB)” program of the Philippines government. Under the model, the infrastructure was built by the government using its own funds, while the operations and maintenance are handed over to the private sector.

    Spread across 110,000 sqm, the new terminal features 18 passenger boarding bridges, 3,881 parking spaces, and 20 bus parking bays. It also facilitates an end-to-end contactless passenger experience from the bus ride, check-in, bag drop, and even when ordering meals.

    Clark International Airport currently serves 27 destinations in 10 countries, involving six airlines, according to ch-aviation data. The airport has two runways (02R/20L and 02L/20R) both measuring 3,200 x 60 metres at an elevation of 148 metres MSL.

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  • Cargo could be as powerful as our passenger services says Airasia chief

    Cargo could be as powerful as our passenger services says Airasia chief

    Air cargo has been a “diamond in the rough” for AirAsia during the Covid-19 pandemic and is likely to retain a high importance to the business in the longer term, according to group chief executive Tony Fernandes.

    “What was a ‘nice to have’ has become something that could be as powerful as our passenger services,” Fernandes said during a CAPA Live event on 14 July. “Covid has driven e-commerce to another level, and hence air cargo has become much more valuable.”

    Amid that change, AirAsia is expecting to receive its first dedicated freighter in the third quarter of this year and is currently removing the seats from two of its Airbus A320s before deploying them as temporary freight-only aircraft.

    Air cargo is “no more a stepchild” in AirAsia’s business, Fernandes says. “I never thought we’d have freighters, I never thought we’d be taking seats off the planes to do cargo.

    The move towards cargo has been made easier by AirAsia already having air freight expansion plans in place as the pandemic hit, he explains.

    “Prior to Covid, I began to see the eCommerce revolution and I started building a separate company called Teleport,” Fernandes says of AirAsia’s logistics arm.

    His aim is to do to cargo operations “what we did to passengers… and eliminate the middlemen”. As part of that process, AirAsia began to deal more with freight forwarders, then direct customers. At the same time, Fernandes says AirAsia “consolidated all our space across all the airlines”.

    “We built a blockchain to deal with that, so there was one airline, as opposed to five different airlines,” he says in reference to the freight capacity across AirAsia Group’s carriers.

    “Five our six other airlines have joined us now in selling space together,” he adds.

    Amid that growth, Fernandes is also cautious about the longevity of current market dynamics.

    “There is a false market out there, so we shouldn’t all get carried away, because [the return of] belly space is going to change the economics again,” he states.

    Regardless, air freight is now front and centre of the carrier’s planning.

    ”When a budget plan is put in front of me, it’s now ‘where are the cargo routes, where are the cargo-only routes?’,” Fernandes says. “Models have to be redone, [but] it’s easier at AirAsia because we are a very nimble even though we are big. I’ve always been a change agent so the staff are used to that.”

    And his ambitions stretch to the “whole logistics chain”, he says: “I also want to be in the warehouse game. We are going to cover everything.”

    AirAsia Group has focused on diversifying away from its core passenger-airline business during the pandemic, and in September last year launched AirAsia Digital, of which Teleport is one of three key focus areas.

    The others are an ecommerce-focused ”AirAsia Super App” and a Fintech company that provides payment, remittance and lending solutions.

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  • AirAsia to raise up to $244mn in rights issue

    AirAsia to raise up to $244mn in rights issue

    AirAsia Group has revealed plans to raise up to MYR1.024 billion ringgit (USD244 million) through a renounceable rights issue, with the funds to be diverted to the group’s working capital and operational costs, as well as to further boost efforts to diversify through its AirAsia Digital businesses.

    The cash call to its shareholders includes seven-year redeemable convertible unsecured Islamic debt securities (RCUIDS), based on two RCUIDS with one warrant for every six AirAsia shares held, the group outlined in a Bursa Malaysia filing. Each RCUIDS security is also convertible to one new AirAsia share on a one-to-one basis.

    The proposed rights issue is expected to be completed in the fourth quarter of 2021, it added, and the AirAsia (AK, Kuala Lumpur Int’l) parent “is also well progressed in discussions to secure a number of other fundraising initiatives.”

    AirAsia Group CEO Tony Fernandes pledged that “the exercise will provide a platform to seek a fresh funding injection from shareholders to maintain liquidity during the downtime in flying and fuel growth of the key non-airline digital businesses.”

    AirAsia seeks “unconditional and irrevocable written undertakings” for a full subscription from group co-founders Fernandes and Kamarudin Meranun and their investment vehicles Tune Live and Tune Air. Tune Air holds a 13.25% stake in the company, Tune Live 13.06%, while Fernandes and Meranun themselves have direct stakes of 0.04% and 0.05%, respectively.

    Collectively, the two, who therefore control a 26.4% equity interest in AirAsia Group, are expected to inject MYR257.27 million (USD61.38 million) in fresh capital into the company. The other substantial shareholder, Stanley Choi Chiu Fai, a Hong Kong-based entrepreneur and professional poker player, holds 8.53% as of June 30. He subscribed to a private placement earlier this year.

  • Malaysia’s AirAsia to buy Gojek’s Thai business for $50 million in shares

    Malaysia’s AirAsia to buy Gojek’s Thai business for $50 million in shares

    Malaysian budget carrier AirAsia Group will buy Indonesian ride-hailing and payments firm Gojek’s business in Thailand in return for $50 million of shares in part of the airline’s digital business, the companies said on Wednesday.

    The deal will give Gojek a 4.76% stake in AirAsia SuperApp, valuing the division at around $1 billion, more than the pandemic-hit airline’s current market value of $868 million at a time when it has been looking to raise more capital.

    The agreement with the Indonesian startup unicorn comes just a week after AirAsia applied for a digital banking licence in Malaysia, signaling a shift in focus towards digital business as most of its fleet remains grounded amid coronavirus restrictions.

    “By taking on Gojek’s well-established Thai business, we’ll be able to turbocharge our ambitions in this space to become a leading Asean challenger super app,” AirAsia Chief Executive Tony Fernandes said in a statement.

    AirAsia SuperApp, a lifestyle platform for travel, e-commerce and financial services, is one of three companies under the AirAsia Digital group. The others are logistics venture Teleport and the BigPay fintech business.

    Gojek’s Thai business, which includes ride-hailing, food delivery and payments, is its smallest overseas operation and has a far smaller share of that market than food delivery market leader Grab.

    Gojek will focus on increasing investment in Vietnam and Singapore after the deal is completed, the statement said.

    Gojek’s Thai business was loss-making in 2019 and 2020, according to accounts provided with the deal announcement.

    Nikkei Asia earlier reported that AirAsia was in talks with Gojek to acquire its Thai business.

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  • AirAsia Indonesia To Suspend Flights For One Month

    AirAsia Indonesia To Suspend Flights For One Month

    On Saturday, July 3rd, AirAsia Indonesia announced that it would be suspending its operations for at least a month due to the worsening COVID-19 situation in the country. The airline has called its suspension a form of support for the Indonesian government’s efforts in tackling the virus.

    According to a statement issued by the AirAsia Group subsidiary, all scheduled flights on the airline’s domestic Indonesian and international routes will temporarily stop operating from July 6th to August 6th, 2021.

    “AirAsia remains committed to serving charter and cargo flights to support repatriation missions, delivery of goods and other essential interests by implementing strict health and safety protocols.”

    AirAsia is taking a flexible approach to existing bookings and reservations on canceled flights. For bookings on flights during the suspension period, passengers can convert tickets into a credit account which is valid for up to 730 days (two years). They can also change their flight schedule to another date until 31 October 2021, which can be done an unlimited number of times at no additional cost.

    While new daily case counts had been ‘stabilizing’ around five to six thousand during the month of May, this figure has significantly jumped over the month of July. New daily case counts are now exceeding 20,000 and continue to climb. Indeed, case counts began to climb in late May and early June – weeks after many Indonesians traveled and celebrated in marking the Islamic holiday Eid al-Fitr.

    A prominent epidemiologist from the University of Indonesia, Dr. Pandu Riono, describes the situation in the country as “herd stupidity.”

    This label was given due to what Dr. Riono calls mixed messaging and poor decision-making from the government, combined with the general public’s refusal to follow health protocols and reluctance to receive jabs.

    As we’ve seen in many other cases around the world, the suspension of flights could be extended further, depending on the country’s COVID situation. If case counts and hospitalizations continue to rise, we can expect more canceled flights in an effort to contain the situation.

    “AirAsia always puts the safety and security of every passenger and all of its employees first. We will continue to evaluate the development of the situation and are ready to re-open our scheduled flight services at any time if the situation improves.”

    With this in mind, AirAsia customers are advised to periodically monitor the airline’s travel advisory information, available on the AirAsia app, as well as on the airline’s social media channels.

  • Malaysia’s AirAsia applies for digital banking license

    Malaysia’s AirAsia applies for digital banking license

    Malaysian budget airline AirAsia Group Bhd said on Thursday its fintech unit has bid for a digital banking license in the country as part of a consortium.

    BigPay, the unit, has partnered with Malaysian Industrial Development Finance Berhad – a unit of the country’s largest asset manager Permodalan Nasional Bhd – and private equity firm Ikhlas Capital.

    Singapore-based Ikhlas was founded by Nazir Razak, the former chairman of CIMB Group Holdings.

    The consortium also includes a foreign conglomerate with fintech expertise, AirAsia said in a statement.

    Citing sources, Reuters reported earlier on Thursday that AirAsia and its partners were among the bidders for up to five digital banking licences that the Malaysian central bank has said it will issue by early 2022.

    Other bidders include a joint venture between ride-hailing-to-fintech group Grab and Singtel, telecoms operator Axiata and a consortium backed by Chinese tech firm Tencent.

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