AirAsia Group services across the travel and lifestyle group has helped sustain the Group during the ongoing Covid-19 pandemic border closures. One effect from the pandemic disruption, has been airasia’s rapid transformation into a digital travel and lifestyle group. This digitalisation of airasia portfolio companies provides a robust platform for future growth and takes full advantage of the surge in cargo demand and shopping deliveries to drive expansion during the pandemic.
AirAsia Group services
There are three main areas where digitalisation has underpinned growth and sustainability. The group’s engineering arm Asia Digital Engineering (ADE), their ground handling division Ground Team Red (GTR) and logistics venture Teleport, have leveraged the new technology revolution through digitisation and data.
AirAsia Group Berhad (AAGB) President, Aireen Omar, oversees all digital operations as a core focus across the entire airasia Group portfolio.
…. While the pandemic has undoubtedly adversely affected our airline operations over the past 18 months, it has also reshaped consumer behaviour and we are really excited about the future of all of our digital businesses. Aireen Omar
She acknowledged that the silver lining of Covid-19 is a huge surge in demand for cargo and online shopping deliveries which drives many new business opportunities and revenue streams. The Group sees huge potential, not only in their super app and fintech solutions, but also in logistics, aircraft maintenance and ground services divisions.
She sees their airasia Super App as the platform of choice for everyday travel and lifestyle needs across Asean, while ADE is set to revolutionise the airline Maintenance, Repair and Overhaul (MRO) industry in Asia. With logistics venture Teleport experiencing significant growth in line with overwhelming demand for cargo and online deliveries, the GTR is preparing for strong regional expansion when travel restrictions ease and international borders reopen. This would include arrangements with third party airlines.
…. Our goal is to become the most preferred, profitable and lowest cost digital distribution group in Southeast Asia and we believe we are on the right track to get there soon.
Asia Digital Engineering (ADE)
ADE is proud of their state of the art infrastructure and superior quality services providing the fastest turnaround time at the lowest cost for AirAsia airlines as well as third party airlines. With this in mind, ADE is gearing up for a major resurgence in the post pandemic world.
ADE was responsible for Teleport’s first A320 cargo plane conversion earlier this year. With soaring regional demand for delivery the company expects more aircraft modifications of passenger to cargo aircraft in the future. Their MRO business division has been conducting base maintenance checks since June in preparation for a uptick in flights. This includes completion of the first wifi installation on an AirAsia aircraft. Wireless connectivity will be rolled out progressively across the fleet in the near future as AirAsia and airlines worldwide move towards delivering fully digital inflight experiences.
AirAsia Group services are well placed to take advantage of the expected rebound when things return to normal. The Southeast Asia aircraft maintenance repair and overhaul (MRO) market was valued at over USD 4 billion in 2020 and the industry is ready to step up. Leading MRO providers in the region, including those in Malaysia and Singapore, have established themselves as dominant providers in the industry over the past few decades, thus positioning Southeast Asia as an important hub for aircraft MRO globally.
Teleport, launched in 2018, has experienced strong growth off the back of the burgeoning digital economy. They have recently refocused their strategy with the introduction of cargo only flights. Two modified former A320 passenger jets and a dedicated freighter aircraft bolsters Teleport’s ability to meet the region’s rapidly increasing demand for deliveries.
With direct access to the unrivalled Airasia Group network across Southeast Asia, and a partnership with Freightchain, the world’s first digital air cargo network running on blockchain, Teleport sees these as a game changer for the industry. This partnership makes 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.
Teleport’s recent acquisition of Delivereat has also helped accelerate its network expansion and growing the fleet of riders. Along with the use of SmartKargo in the company’s operations they have an all in one digital system for cargo management providing a seamless end to end tracking system.
Ground Team Red (GTR)
Feeding into AirAsia’s logistics and distribution ecosystem, GTR has embraced digitisation initiatives across the process pipeline. These enhance air cargo movements, communication exchanges and logistics processes in and between its KLIA Cargo Terminal and AirAsia’s aircraft. GTR will continue to support and supplement the Group’s ecosystem through cooperation with other AirAsia affiliate airlines to expand its range of services and capabilities to include other airlines.
As things slowly return to normal, get more information or book your post-covid travel with AirAsia.com.
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