After launched Ikhlas and AirAsia Food, now the low cost carrier, AirAsia Group Bhd (MYX: 5099), looking the ride-hailing businesses as part of the company plans to create super apps - Photo by the Company

JAKARTA (TheInsiderStories) – After launched Ikhlas and AirAsia Food, now the low cost carrier, AirAsia Group Bhd (MYX: 5099), looking the ride-hailing businesses as part of the company plans to create super apps, said the CEO. The company aimed to open the first new online motorcycle taxi in Malaysia.

The CEO, Tony Fernandes as quoted by Edge Weekly, this business development is also aimed at covering losses in the aviation business during the COVID-19 pandemic. Based on the company financial report, in the fourth quarter of 2020, the aviation company has lost US$590.72 million.

Since March, the aviation firm has opened AirAsia Food in Malaysia and Singapore and also testing food delivery services via drones in Malaysia. Earlier, as part the diversifying business into the digital sector, the issuer also launched a digital akikah service, Ikhlas, in 2020. Through this platform, people who want to hold their children’ marriage can access the platform.

“This new service consists of marriage couples and covering more than 35 countries around the world,” said Ikhlas Kamarudin, director of the new company on Sept. 30, 2020.

Fernandes is confident could compete with Grab Holdings, caused there were and advantages to combine airline services with online motorcycle taxi. In addition, there are only smaller online motorcycle taxi service providers in Malaysia, such as MyCar, EzCab, Dacsee, Riding Pink, and MULA. He also mentioned, that his party had planned to raise more capital to fund his online motorcycle taxi business.

During last year, AirAsia carried 23 million passengers. In December alone, the four units recovered close to 60 percent of pre-COVID domestic capacity. Post-COVID, the company expects to benefit from a leaner and optimized airline operation established in 2020, concentrating on recovering the most profitable and popular routes while exploring opportunities to gain market share.

In detailed, AirAsia Malaysia closed the fourth quarter with 834,934 passengers carried on 72 percent load factor, despite the setback in October and November, given the reimplementation of interstate travel restrictions. Following the easing of restrictions in December, strong pent-up demand positively translated into an immediate pick up in domestic travel.

Then, AirAsia Philippines carried 117,948 passengers in 4Q of 2020 and reported a load factor of 64 percent. On a month-to-month basis, AirAsia Philippines’ number of passengers carried doubled while domestic operating capacity increased by 13 percent in 4Q as compared to 3Q of 2020.

While, AirAsia Thailand’ performance further gained momentum in the last quarter of 2020, riding on strong domestic travel demand from the festive season and travel incentives from the government. The flight carrier operations exceeded expectations as it surpassed its pre-COVID domestic capacity by 7 percent.

In December 2020, AirAsia Thailand operated 116 percent of pre-COVID domestic capacity, as compared to 96 percent in September 2020. The company utilized 70 percent of its fleet by the end of December. More than 2.8 million passengers were carried during the quarter, an increase of 50 percent on quarterly basis, resulting in a commendable load factor of 74 percent.

Written by Editorial Staff, Email: theinsiderstories@gmail.com