Malaysia's AirAsia has taken a step away from the traditional low-cost model by agreeing an air freight outsourcing deal aimed at boosting revenue from non-core cargo operations.
AirAsia has negotiated a tie-up with Lufthansa Cargo subsidiary Cargo Counts under which the latter will take over the management of unused cargo space on the airline's aircraft. The three-year deal takes effect in September, covering Malaysia as well as international markets.
Cargo Counts will be responsible for cargo sales, marketing, handling, accounting, IT and management of flight data, yield and capacity. "Our partnership with Cargo Counts, and its relationship with Lufthansa Cargo, will provide us with access to Lufthansa's extensive global network of 450 destinations in 99 countries," says AirAsia group chief executive Tony Fernandes.
Fernandes stresses, however, that "our operations will remain very much focused on the core of our business, which is the business of connecting people from one point to another with our low fares".
Source: Airline Business
