AirAsia Group leverages Freightchain capabilities to ramp up cargo services
In an effort to further strengthen its cargo footprint across the region, airlines under the AirAsia Group have made available cargo spaces on their flights on Freightchain, the world’s first digital air cargo network based on blockchain.
AirAsia's cargo services are managed by its logistics venture, Teleport who has also adopted Freightchain in order to provide AirAsia and other airlines a platform to increase their cargo capacity utilisation. With Freightchain, AirAsia is now able to fully interline its flights digitally with other airlines, allowing for a faster and more on-demand connectivity to transport cargo across Southeast Asia and beyond.
This will greatly benefit cargo-related businesses such as exporters, importers and freight forwarders as it simplifies the process and improves efficiency that translates into huge cost savings.
Tony Fernandes, chief executive officer of AirAsia Group, said, “As we continue to innovate across all aspects of the cargo business, the listing of AirAsia on Freightchain supports our goal to be a formidable and reputable digital cargo distributor in the region, providing customers the best services through our comprehensive flight network at the lowest possible cost.
"The ability to maximise cargo revenue through digital interlining is a game changer for the cargo industry. Freightchain provides an avenue to connect multiple airlines and destinations, opening up revenue opportunities for airlines and limitless connections for shippers through Freightchain’s interlining solution. All of our AirAsia Group airlines are now listed on Freightchain and we welcome other airlines to come on board to create an amazing digital space for the global cargo network.
"We have often witnessed the belly capacity utilization of scheduled commercial flights is below 100 percent, at times about 50 percent. There is a huge opportunity for airlines to leverage on demand interlining on Freightchain to fill the belly space to deliver significant convenience, so they never have to fly empty. Collaborating with Freightchain provides a new world of possibilities during this time to transport cargo to areas we aren’t able to reach on our own.
"Our digital transformation to become more than just an airline has been gaining strong momentum. On the cargo and logistics front, we have established Teleport that will utilise cargo spaces not only on our AirAsia flights but also other airlines, and this provides great synergy to our business. We’re making it possible for businesses to transport cargo to places outside our network and the region like Moscow and Brussels."
Like a match made in cargo heaven, Freightchain digitally creates a combined itinerary for air cargo bookings by searching, booking and arranging multiple routes to transport cargo across multiple destinations and airlines. The online booking process makes it seamless, simpler and faster as it eliminates the traditional process of manual contracts and agreements.
As the Freightchain platform runs on blockchain, it allows airlines to manage shipment bookings on their own, from finalising consignment details all the way to rescheduling. The payment and settlement process is simplified and secured with various methods including via wallet top up, credit card or even deferred payment. To date, Freighchain has on-boarded 10 airlines along with their agents and forwarders, including all of AirAsia Group's airlines based in Asean.