AirAsia Enters Air Taxi and Drone Delivery Markets

[Asia Economy Reporter Yujin Cho] AirAsia Group, the largest low-cost carrier (LCC) in Southeast Asia, is introducing air taxi and drone delivery services.

Tony Fernandes, co-founder and CEO of AirAsia, stated at an online economic forum on the 7th (local time), "We are pursuing diversification of our business portfolio amid the COVID-19 pandemic," adding, "As part of this, we plan to officially launch the air taxi business in 18 months and start commercial drone delivery services by the end of this year."

AirAsia, which has suffered a significant decline in passenger segment performance due to the direct impact of COVID-19 and has recorded losses for five consecutive quarters, is expanding its business areas into digital sectors and others.

The air taxis to be introduced by AirAsia are expected to be equipped with a cockpit and seating for four passengers.

While the commercialization of air taxis is anticipated to revolutionize future transportation amid ground traffic congestion, there are also skeptical views due to changing market conditions after COVID-19 and the introduction of safety-related regulations by governments worldwide.

The air taxi startup "FlyingTaxi" ceased operations after two years of service as travel decreased due to the impact of COVID-19.

The Australian government previously announced plans to impose noise regulations on air taxi operators that are "much stricter than those for helicopters of the same class."

This content was produced with the assistance of AI translation services.