Malaysia’s AirAsia expanding food delivery service at home, eyeing region: Bernama

Malaysia’s AirAsia will be taking its food delivery service to more states at home and is targeting Singapore next month, state news agency Bernama reported on Monday (Feb 15).

The airline started AirAsia Food in May during Malaysia’s COVID-19 lockdown period as a way to bring in revenue while flights were grounded.

Bernama quoted AirAsia CEO Riad Asmat as saying that the service will be available in the southern state of Johor and the northern state of Penang next month.

The state news agency also said the low-cost carrier aims to “mark its presence in Singapore” next month, as well as other markets such as Indonesia, the Philippines and Thailand “soon”. It provided no further details.

Sales of the delivery service picked up during the lockdowns in Malaysia but the business will remain relevant in the future, according to Bernama.

AirAsia employs more than 1,500 riders offering services to 1,200 restaurants around the Klang Valley region that is centred in Kuala Lumpur, said the report.

The food service is one among others in AirAsia’s super app.

Like all airlines, AirAsia has been severely hit by the COVID-19 pandemic that is still strictly limiting air travel. The company let go 300 employees in June and retrenched 10% of its 24,000 workforce in October.

AirAsia Group on Jan 27 started raising new funds via private placement. It aims to raise up to approximately 454.51 million ringgit ($112.60 million) that will be channelled mainly to fuel hedging, general working capital expenses, and aircraft leases and maintenance.

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