Page 27 - STAT-November-2023-for-Magzter

But it will operate on a rotation out of Kuala
Lumpur doing domestic and international. It
will touch Hong Kong, and eventually South
China connecting Shenzhen and Guang-
zhou. The third freighter is scheduled for
delivery some time in December this year
but it has to go through the entire checks
and handover before we can induct that air-
craft effectively. We are looking to potentially
place the third freighter in Manila. And the
goal is to figure out how to maximize our
network value where we cannot reach out
with our belly capacity.

that they can be disrupted. So, only if you're Do you think that your decision to
an outsider and a little bit naïve, you then launch freighter service was at the
have a chance to try this. That is what we're appropriate time given the market
doing at Teleport. conditions have been quite brutal in
terms of rates?
How important is it for Teleport Most people see induction of freighter at the
to have its dedicated main deck Most people would time of rock bottom race as, maybe foolish.
capacity to leverage the current say there’s no peak But I would say this is the time in which
position that you hold in South other people are retreating and we are able
East Asia and the potential growth season this year. But I to take some share. So I would see that as an
ambitions in the years ahead? say that there’s a peak opportunity. Obviously economic conditions
I would say it is important to have freighter season and it will do matter. But ultimately, the belly space
capacity because Asia in general lacks is really what enabled us to take freighters
controlled capacity. In South East Asia more be strong, stronger in the first place. And so, it's all about the
than 60% of the total available capacity is in than expected. We're fact that we were sitting on belly space and
the bellies. And most of that belly capacity is asked ourselves when we can graduate
on low cost carriers, which is how we started gearing up for that. beyond belly space. Therefore, the timing
Air Asia, the largest low cost carrier in South Ecommerce is really for us is really less about when the market
East Asia. I think the problem is that a lot of conditions are right. It's more about when
customers don't believe you can deliver the leading indicator are we ready to graduate to freighters. And I
to the service level agreement (SLA) that of how strong it will think we discovered that that was now.
you promised them or the expectations
they have, without you having some be and we've seen Teleport also has been entering
form of controlled capacity. We were that hold up pretty into partnership with other cargo
always a belly player. We believe the airlines in the region – you had one
future is mainly going to be belly, but well so far. going on with Pradhaan Air Express
the full value of the network does in India, Garuda Indonesia and the
require controlled capacity. That is recent one with SF Airlines in China.
the reason we have taken the A321 How significant are these for your
converted freighter. We are going where yields are plummeting back to pre- business and growth strategy?
to have three because we see an Covid levels. And so what does that mean I think in the next 24 months 40 percent
opportunity in South East Asia as for most of the players that transport things of our growth would be driven by third
it is a region of 10 countries. And so from A to B by air. It's only when you have party airlines. And the reason for that is
each country represents a base where the right cost structure and the network that because this industry doesn't generally share
we could put our aircraft and can you are able to sustain and build a business network. And so the outcome of that is that
actually operate a network that in this space that can actually do the things everybody is worse off. Everybody is not at
other people cannot operate. that you want to do. the utilization of their asset that they should
You literally have to have be. This may be because of lack of trust or
multiple airlines in differ- When do you expect to have your just legacy mindset of not wanting to share
ent countries to do that second and third freighters joining the network. And I would say that what's
which we have under your fleet? critical for us is to break that for companies
Air Asia. The industry is The second freighter will join the fleet in No- that represent the best in class like Garuda
going through a period vember and will be based in Kuala Lumpur. Indonesia SF Airlines. We work with many

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