According to the results of the survey, half of the participants are unconcerned about Big-Pay and
other AirAsia enterprises, particularly fast-food restaurants. The outcome also reveals that crossborder parcel delivery and the e-commerce platform are of greater public concern. They were not
encouraged to stay outside, mostly due to the way the Movement Control Order (MCO) is
implemented. As a result, they are encouraged to shop online on many platforms. Through these
other businesses, AirAsia may raise its revenue and brand recognition.
AirAsia is also exploring for deals across south-east Asia to grow its nascent digital business, as the
budget carrier seeks to accelerate a pivot to ecommerce and ride-hailing after being affected by
Covid-19. Tony Fernandes, the owner and chief executive of the Malaysian airline, told the Financial
Times that AirAsia was looking at potential acquisitions in the Philippines, Cambodia and Vietnam
after the acquisition the Thailand operations of Gojek earlier July 2021. The airline is also exploring
merging its digital operations with a special purpose acquisition company (Spac), or blank-cheque
vehicle. Teleport, the logistics that ventured with AirAsia Digital, also launch the Urban Drone
Delivery Sandbox in partnership with the Malaysian Global Innovation and Creativity Centre. The
drone pilot project for the delivery of goods from the group’s e-commerce platforms will be carried
out through a six-month phased approach in Cyberjaya. According to Tony Fernandes, Teleport will
make shipping goods throughout Malaysia and around the world faster, less expensive, and more
accessible.
Along with looking into others source options and cutting costs, AirAsia also tried to apply for bank
loans and consider requests for more funding as well as joint ventures and collaborations that result
in more investments. The Malaysian budget airline is permitted to take out loans up to RM1.5 billion
from banks and another RM1 billion from investors. Cost management is a crucial component of
airline management.
The research has identified that from the first wave of COVID-19 infection in early 2020, AirAsia’s
mission has been to adapt to survive to mitigate the impacts on its employees. Towards to reduce
the impacts on its employee, AirAsia initiated its Second Job Opportunity program under the
“Secondary Jobs, Primary Importance” concept to create jobs as alternate placements throughout
the AirAsia Group structure. Through this program, it has received considerable interest and has
been successful by providing supplemental income to those affected employees.
“When we couldn’t avoid requesting staff to take leave without pay, we also saw the importance of
ensuring a plan to mitigate their lost income as absolutely necessary. All of our employees have a
diverse range of skills and expertise, so we initiated a partner program with our allied companies to
create job opportunities for affected employees who are interested” Mrs. Thiladee, Head of People
and Culture at AirAsia Thailand said.
AirAsia provide alternate placements throughout the AirAsia Group structure, such as overseeing its
comprehensive Teleport logistics system, to roles at partner businesses, such as in real estate sales
at Ananda Development, life insurance advisor at AIA, product and service consultant at Tune
Protect, credit guidance officer at Bangkok Bank, food and beverage preparation and management
within Lotus Group (Thailand), reception staff at Piyavate Hospital and many more in Thailand.
AirAsia use channels online platforms such as Workplace to get feedback from employees, which
allow for two-way communication and kept the company aware of how employees felt throughout
the pandemic situation. All this feedback is used to adjust operational guidelines so that everyone is
pursuing the same objectives.
This research also identified the factors affecting the revenue of Air Asia during the Covid-19
pandemic are restrictions in travelling, paucity of passengers and these factors also the decrease of
income. The customers who used to travel by Air Asia could not travel or avoid travelling during the
pandemic strike as the boarders were closed. Airline companies nationwide have been forced to halt
their operations and ground large parts of their fleets. Air Asia suffered a record-breaking net loss of
RM992.89 million in the second quarter that ended 30 June 2020 as compared to a net profit
ofRM17.34 million in the same quarter last year. Its revenue plunged by 96 per cent quarter-onquarter to RM118.96 million from RM2.92 billion previously. The COVID-19 crisis has resulted in
border closures in most of AirAsia's key markets including Malaysia, Thailand, Indonesia, the
Phillippines, China and India, resulting in a 22% reduction in total passengers carried in the first
quarter of year 2020
In year 2022, AirAsia is in optimism after the opening of international borders. AirAsia X the long
distance and budget carrier AirAsia Group returned to the black with a surge in travel demand
following the gradual resumption of international travel after pandemic.
The company posted a net profit of 25 million ringgit ($5.5) in the three months ended September,
compared with a net loss of 652.5 million in the previous quarter, AirAsia X said in a statement on 1st
November 2022.
“AirAsia X is now well on track in its recovery path even as the airline is compelled to operate in a
challenging operational environment dictated by high fuel prices and a weakened Malaysian ringgit
against the US dollar. While we are cautious of the strenuous operating conditions, we remain
confident that the recovery of the company is on the horizon, if not already within our reach.”
Benyamin Ismail, CEO of AirAsia X Malaysia, said in a statement
According to AAX, the firm has expanded flight frequency to foreign cities like Seoul and Delhi in
response to the rebound in travel demand, while also resuming flights to domestic short distance
locations like Kota Kinabalu and Kuching. The airline now runs nine Airbus A330s, and by the first
half of 2023, it aims to add four additional aircraft to its fleet.
The rebound of international air travel and the rise in domestic demand in Malaysia are helping
AirAsia X and its parent company AirAsia Group. The firm has been steadily redeploying its fleet; as
of August 2022, 108 of its aircraft were back in the air, and 52 more will be operational by the end of
the year 2022.
“AirAsia Group is recovering well from the impact of the COVID-19 pandemic, during which it looked
at opportunities it had not been able to act on earlier and accelerated its digital transformation”,
group chief executive officer Tony Fernandes said. “The group saw the situation as an opportunity to
recharge its business, and started to focus on ASEAN, relook its cost structure and do away with
businesses that did not make sense”, he added.