SEPANG, 26 January 2022 - AirAsia X (AAX) today announced a major new air logistics partnership with global leading transport and logistics provider GEODIS, providing additional cargo capacity and boosting revenue during the downtime in commercial flying.

This agreement is set to run for an initial period of six months commencing from 20th 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.

With an extensive footprint in Asia Pacific, the partnership with GEODIS will not only complement the existing AAX network but will also stimulate additional air-cargo traffic in a number of markets that they both operate in. Through its hub and spoke model, including the ability to switch transport modes at the Kuala Lumpur facility, the network also benefits from GEODIS’ expansive road network to ensure that cargo from its flights to Singapore, Malaysia, Thailand, and Vietnam are able to be transported across the whole of Southeast Asia. With highly integrated, multimodal transport solutions, GEODIS aims to help more customers to circumvent disruptions that have negatively affected both air and sea cargo flows historically.

This innovative partnership is the first of many that will be finalised in coming months. These augment the significant short term cargo charters completed in recent months and represent a rapid financial turnaround post a comprehensive successful restructuring of the airline.

CEO of AirAsia X Malaysia, Benyamin Ismail said: “Air cargo rates will continue to remain robust as long as planes remain grounded. We intend to capitalise on this opportunity for as long as it lasts. 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. Furthermore, passenger revenue will offset any drop in cargo rates when we start normal scheduled flights again.

“We are tremendously excited with this new opportunity with GEODIS. We have operated ad hoc charter services for them in recent months but this new arrangement provides better certainty on utilisation of our planes and better visibility of earnings.”

Onno Boots, President and Chief Executive Officer, Asia Pacific, GEODIS said: “It is more crucial now than ever to supplement integrated transport networks with strategic routes that offer customers a high degree of efficiency, personalisation and flexibility. Especially given the increasingly complex supply chain landscape that has affected the logistical expectations and needs of industries across the board.

“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 optimize the e-commerce boom and chart their long-term business growth.

“We look forward to working in partnership with AirAsia X to strengthen its logistics footprint.”

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About AirAsia X - airasiax.com

AirAsia X (AAX) is the medium haul, low-cost affiliate of the AirAsia Group operating an all wide body A330-300 fleet. The airline together with its Thai associate Thai AirAsia X (TAAX) have carried over 19 million guests since commencing service in 2007. In 2021, the  airline was successfully restructured and is now relaunching service as a combination carrier with equal emphasis on both cargo and passengers, working in partnership with global freight forwarders. As international borders reopen, AAX is well poised to compete very effectively in the markets where it operates with perhaps the lowest cost structure of any similar airline globally.

About GEODIS - geodis.com

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.