AirAsia & Leisure cargo partnership to generate RM12 million in revenue per annum
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Commercial Agreements,
AirAsia
(CAPA) AirAsias cargo division will deliver RM12 million in revenue per annum for the carrier, derived from the Memorandum of Agreement (MoA) signed between the low cost airline and Leisure Cargo, a cargo management company. The contract came into effect from 1 May 2007. Leisure Cargo will serve as the air cargo provider for AirAsias regional routes from its Kuala Lumpur hub at the Low Cost Carrier Terminal, and will secure RM1 million in cargo value for the airline every month.
The event marks AirAsia’s foray into developing its cargo product and playing an active role in cargo management, which will see the airline tapping into the logistics market with revenue-generating opportunities in parallel with the liberalization of air travel. AirAsia’s comprehensive route network enables efficient delivery of cargo, a pull factor for business enterprises and consumers alike in search of flexibility and point-to-point delivery.
Abdul Nasser Kassim, Regional Director – Cargo of AirAsia Berhad, stated “this important development… will see the increase in air cargo capacity with the complete delivery of the 150 Airbus A320 aircraft by 2013… cargo plays an integral part of our ancillary income and we foresee cargo to be one of the key drivers with significant contribution towards the company’s bottom line.”
AirAsia’s Airbus A320 passenger aircraft is allocating belly section of the aircraft for cargo which will result in the aircraft being equipped with the capability to carry both passengers and cargo. AirAsia is serving 18 destinations under this contract, with a cargo space of 2.5 tonnes for A320 and 1.5 tonnes for B737 aircraft.
Date posted: 07-Jun-07
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AirAsia & Leisure cargo partnership to generate RM12 million in revenue per annum 
