KUALA LUMPUR: Capital A Berhad (formerly known as AirAsia Group Berhad) (“Capital A” or “Group”) welcomes news that its logistics venture subsidiary, Teleport, has entered into a term sheet with large institutional credit investors to raise up to US$50 million to fund its expansion of cross-border delivery capabilities in all key Southeast Asian markets.
Chief Executive Officer of Capital A Tony Fernandes (pix) said, “We are proud to see the latest development and that top-tier investors are beginning to buy into our vision of becoming the best logistics player in Asean. With an operating fleet size today of 125 planes in AirAsia Aviation Group, and with target to operate the full 205 aircraft and network by 2Q23, coupled with the first freighters arriving in the first quarter of 2023, Capital A’s Teleport is now in the best position and has the best advantage of achieving that vision. If you add data and tech into our logistics, including end-to-end track and trace, custom clearance, e-airway bills, we can do what no other logistics player can do.”
He added, “We have always said logistics is a big prize and Teleport is our jewel in the crown. We are confident that what Teleport brings to the table, including the widest regional network and next-day international delivery, will be a game changer for the booming logistics and e-commerce industries and most importantly, for SMEs and customers looking for greater reach and an enhanced experience with fast delivery.”
Pete Chareonwongsak, CEO of Teleport said, “We are excited about the next phase. Teleport plans to use new capital of up to US$50 million (approximately RM220 million) to induct in additional freighters, build critical hubs in Indonesia, the Philippines and Malaysia, and further invest in technology that allows anyone to ‘Teleport It’ in 24 hours across Southeast Asia.
He added, “Today we are profitable, larger, and growing faster than pre-COVID times. We are riding on improved utilisation across the AirAsia Aviation Group’s recovering network, making us stronger and fitter to move on to the next chapter. Key to Teleport’s leadership in the next three years is the extension of our network mid-mile air coverage with the induction of A321F freighters starting in 1Q2023. We aim to easily connect global freight forwarders, manufacturers, exporters and e-commerce directly to any Southeast Asian market.”
Earlier this month, Teleport launched Teleport Pink, a new easy-to-use and affordable next-day international parcel delivery service at a flat rate of RM40 (USD10) across Southeast Asia, beginning with Kuala Lumpur to Singapore. Teleport Pink was created to meet consumers’ growing demand for next-day cross border delivery at a fixed shipping rate that is up to 80% lower than other delivery service providers in the market.
The logistics arm of Capital A also delivered positive EBITDA of RM5.1 million in 3Q22 as it completed its transition from a low-margin model of using passenger planes for cargo-only operations to a more sustainable model of using AirAsia cargo belly space with incremental margins. – Bernama
