Airasia’s digitalisation to provide a solid foundation for future growth
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AirAsia Group Bhd is accelerating its digitalization by emphasizing new technologies and focusing on driving innovation across its entire portfolio of companies.
The carrier’s engineering arm Asia Digital Engineering (ADE), ground handling division Ground Team Red (GTR) and logistics venture Teleport, are set to soar to new heights through digitization and data.
“A silver lining of Covid-19 has caused a huge surge in demand for cargo and online shopping deliveries and this is driving many new business opportunities and revenue streams.
“We see huge potential, not only in our super app and fintech solutions but also in our logistics, aircraft maintenance and ground services divisions,” AirAsia Group president Aireen Omar, who oversees digital operations, said in a statement today.
Aireen said ADE is set to revolutionise the airline maintenance, repair and overhaul (MRO) industry in Asia.
ADE performed and completed Teleport’s first A320 cargo plane conversion earlier this year and expects more aircraft modifications of the passenger to cargo aircraft in the future.
“With an experienced workforce of more than 15 years managing AirAsia’s fleet, strong supplier, lessor and regulatory relationships and through automation and streamlined operations, we foresee that ADE will soon become the next major MRO player in Asean, delivering a significant new revenue stream for AirAsia Group.”
Meanwhile, she said the company’s logistics venture Teleport is experiencing significant growth in line with the overwhelming demand for cargo and online deliveries.
“ADE performed and completed Teleport’s first A320 cargo plane conversion earlier this year and expects more aircraft modifications of the passenger to cargo aircraft in the future.”
“With direct access to the unrivalled Airasia Group network in Southeast Asia, Teleport has put in place the right foundations to truly disrupt the cargo industry in ASEAN.
“Furthermore, Teleport’s partnership with Freightchain, the world’s first digital air cargo network running on blockchain, is a game-changer for Teleport and the industry, making the online booking process as easy as buying a flight ticket on AirAsia.
“Importantly it also links AirAsia airlines with other innovative interline partners to ensure maximum efficiency and lowest cost for clients,” she said.
Similar to its super app ambitions, alongside ADE and Teleport, Aireen said GTR aims to be the ground handling services provider of choice in ASEAN.
She said with the easing of movement restrictions and return of air travel globally, GTR is anticipating more business collaborations with foreign airlines in major airports across Malaysia.
“GTR is preparing for strong regional expansion including with third party airlines as soon as travel restrictions ease and international borders reopen,” she said.
According to Aireen, AirAsia Group has built a complete digital marketplace for travel and everyday lifestyle services on airasia Super App.
“Logistics, aircraft maintenance, ground handling services and fintech are equally important to complete our ecosystem.
“They all work in tandem symbiotically, to meet increasing demand in the e-commerce and distribution space,” she added.
Questions & Answers
Q.What specifically is driving the new business opportunities and revenue streams for AirAsia's digital ventures?
What specifically is driving the new business opportunities and revenue streams for AirAsia's digital ventures?
The huge surge in demand for cargo and online shopping deliveries, partly due to Covid-19, is creating these opportunities. This demand is benefiting their logistics, aircraft maintenance, and ground services divisions.
Q.How will Teleport's partnership with Freightchain enhance its operations?
How will Teleport's partnership with Freightchain enhance its operations?
The partnership with Freightchain, a digital air cargo network on blockchain, will simplify the online booking process significantly. It also connects AirAsia airlines with other partners for efficiency and cost reduction.
Q.What is ADE's strategy to become a leading MRO player in Asean?
What is ADE's strategy to become a leading MRO player in Asean?
ADE plans to use its experienced workforce and strong relationships, alongside automation and streamlined operations. This includes performing more passenger-to-cargo aircraft modifications in the future.
Q.What are GTR's plans for expansion as travel restrictions ease?
What are GTR's plans for expansion as travel restrictions ease?
GTR is anticipating more business collaborations with foreign airlines at major Malaysian airports. It is preparing for strong regional expansion, including working with third-party airlines, once travel restrictions ease.
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