KUALA LUMPUR, 18 June 2021: AirAsia is transforming a couple
of A320s to carry cargo powered by the group’s Teleport, a logistics venture of
AirAsia digital.

The group will strip out the passenger cabin layout on the
two aircraft to ramp up cargo capabilities to meet significant e-commerce
growth that the Covid-19 pandemic has accelerated. Last year, digital
e-commerce sales grew globally by 28%, the airline reports. The trend is
expected to gain further momentum as consumers continue to embrace e-commerce,
which is expected to amount to over 3 billion users in Asia by 2025.

AirAsia Group CEO Tan Sri Tony Fernandes commented:
“Teleport is an integral part of the digital travel and lifestyle ecosystem we
are building to become the ASEAN super app of choice… Our logistics venture
has achieved an impressive triple increase in revenue in Q1 2021 versus Q4
2020, back to pre-pandemic revenue and growing faster than before. We now have
a dedicated freighter aircraft and have converted two A320 passenger aircraft
to provide cargo-only services to facilitate rapid forecast growth in ASEAN and
beyond.

“Teleport is leading the way with same-day deliveries and is
also connecting to many of the smaller cities that are only accessible by our
networks, such as the recent shipments for the United Nations World Food
Program from our Kuala Lumpur hub and the delivery of medical supplies to
Vientiane in  Laos,” he said.

24 hours delivery

Since launching door-to-door delivery services in 77 cities
in five countries by the end of 2020, Teleport has successfully delivered cargo
and other consumer products in under 24 hours on two-way routes between Kuala
Lumpur and Singapore, Kuching and Kota Kinabalu. 24- hour delivery services
will soon be expanding from Kuala Lumpur to Penang, Malacca, Johor and Ipoh in
Malaysia and other international and domestic routes in Thailand, Indonesia and
the Philippines.

The continued growth of Teleport will be accelerated by the
addition of the company’s first dedicated freighter, a Boeing 737-800F and by
the conversion of two AirAsia A320 passenger aircraft, with seats removed for
increased capacity of freight and cargo delivery in Q3 2021.

The additional capacity of these three cargo-only planes and
connection with other third-party airlines, freighters, trucks and vans will
strengthen Teleport’s capabilities, not only on existing short-haul routes but
also in key markets like China, India and new markets throughout Southeast
Asia.

About Teleport
Founded in 2018, Teleport is a venture under AirAsia digital, building out the logistics ambitions for AirAsia. Currently, Teleport is present in Malaysia, Thailand, Indonesia, the Philippines, India, Singapore and China.