JAKARTA (TheInsiderStories) - The AirAsia Group diversifying its business in the digital sector by launching the Ikhlas platform, a digital akikah service, as a strategy to survive during the COVID-19 pandemic. 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 in a written statement on Wednesday (09/30).
As reported, in the second quarter (2Q) of 2020, the Group’ passengers fell almost 100 percent compared to previous year to 4,059 sitter. As a group, Malaysia’ AirAsia Bhd’ passenger number occupants and seat capacity also dropped by 98 percent in the same period to 204,082 in the same period.
The load factor of the group (Indonesia, Malaysia, Thailand, Philippines, and India) also fell to 59 percent and number of flights fell 98 percent to 1,868. During the pandemic, the issuer rely on essential movement of people and cargo, some of which had longer distance, contributing to a 3 percent increase in average stage length.
AirAsia Indonesia resumed operations on 19 June with five routes. At the end of July, the daily sales have reached five times of the daily sales recorded in early June, evidently showing signs of demand recovery. In Indonesia, the unit, PT AirAsia Indonesia Tbk (IDX: CMPP), is also still under pressure.
During the first half of this year, the company’ revenues dropped by 55.18 percent to Rp1.34 trillion (US$90.54 million) from the same period of last year’ Rp2.99 trillion. As a result, the low-cost flight carrier suffered an operating loss of Rp1.05 trillion from a year ago loss Rp37.87 billion.
The Group gradually resumed operations at end-April as domestic travel restrictions eased. The issuer saw a pick up in key operational metrics in June as compared to May. AirAsia Malaysia doubled up capacity in June compared to May, as the Malaysian government began allowing interstate travel from June 10.
The unit achieved a 65 percent load factor while carrying 118,407 passengers in June, having reopened 24 routes by month’ end. The company expects to recover up to 70 percent of its pre-COVID-19 domestic capacity by 4Q of 2020.
While, AirAsia Philippines registered a 99 percent decline in number of passengers carried as the airline entity hibernated its fleet from March 20 to June 4. The subsidiary boasted 19 percent of capacity market and ended the quarter with the resumption of 6 routes. For the 4Q of this year, the flight carrier is targeting a recovery of domestic capacity up to 60 percent of pre-COVID-19 levels.
Then, in May 2020, AirAsia Thailand reinstated domestic flights in phases as lockdown measures were partially uplifted, but with social distancing measures implemented on-board as required by the authorities, before the measures were eased in mid-June. With the encouraging rebound traffic, the unit operated 18 percent of pre-COVID-19 capacity in June 2020, which more than doubled the May 2020 capacity.
The airliners resumed service to 18 of its domestic destinations in 2Q of 2020, topping peers with a leading capacity market share of 33 percent. In 3Q and 4Q of this year, AirAsia Thailand expects to operate 75 and 95 percent of pre-COVID-19 domestic capacity respectively.
Furthermore, AirAsia India restarted its domestic operations on May 25, and was quick to ramp up to 30 percent of pre-COVID-19 capacity in June, with 36 operational routes. The Group is optimistic over the subsidiary’ performance and is looking at domestic capacity resumption of 55 percent for 3Q and 80 percent for 4Q out of last year’s operations.
And, AirAsia Japan reported a decline of 98 percent in passengers carried with 4 percent operating capacity in 2Q of 2020, as flights were not restarted due to guidelines set by the government. AirAsia Japan resumed operations on August 1, 2020.
US$1: Rp14,800
Written by Editorial Staff, Email: theinsiderstories@gmail.com
