AirAsia launches low-cost courier in Malaysia

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KUALA LUMPUR, Malaysia -Budget carrier AirAsia on Thursday launched a low-cost air courier service in Malaysia, expanding its business to boost revenue amid the global economic slump.

Redbox will offer savings of up to 50 percent in shipment costs between the central region comprising Kuala Lumpur and Selangor state, and east Malaysian cities on Borneo island, the airline said in a statement.

"We are determined to grow this arm of AirAsia's business, and we expect to be able to offer courier services to more AirAsia destinations," said Azran Osman-Rani, Chief Executive of its long-haul budget unit, AirAsia X.

Customers can purchase online and track delivery via Google Maps to ensure packages arrive within 2 to 3 days, the airline said.

The launch of Redbox reflects AirAsia's bid to enhance its revenues amid a travel downturn. Last month, the airline abolished administrative fees on all its flights to further cut air fares and has said it would recoup losses through other services.

AirAsia says it is benefiting from the downturn as passengers cut costs and migrate to budget carriers. Its net profit in the quarter through March hit a record 203.2 million ringgit ($57 million), up 26 percent from a year earlier.

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On the Net: redbox.airasia.com or http://www.airasia.com.

2009-07-09 06:14:02