Capital A, the leading Malaysian company behind affordable airline AirAsia, has initiated a huge step toward introducing flying taxicabs to the citizens in Southeast Asia while also undergoing a brand transformation.
“Because Urban Air Mobility is a novel idea, the emphasis is on establishing and supporting the environment, as well as the structural components for prospective growth and expansion,” said AirAsia’s senior security manager, Ling Liong Tien.
In February, AirAsia Aviation Unit struck a deal with Avolon, an Irish rental company, to acquire a minimum of 100 VX4 electric vertical flight operations planes.
Air cabs will require type certifications, as well as particular aviation regulations and equipment for arrival, departure, and parking, in order to begin operations.
Prior to the Covid outbreak, the company’s profitability had plateaued due to intense competition amongst Southeast Asian low-cost carriers. It resulted in significant losses, and AirAsia’s net value shrank.
Capital A, on the other hand, was unable to achieve the financial terms, which incorporated a loan guarantee from Fernandes, according to Danajamin Nasional.
AirAsia rebranded to Capital A to represent its commitment to becoming a virtual corporation that chases development through its diverse mobility platform.
Capital A’s potential to gain a competitive edge and financial prospects in ride-hailing, an industry notorious for fierce pricing rivalry, will be hampered by the cash shortage. However, because the air taxicab industry has rather significant entry barriers, Capital A will be able to put its aviation skills to good use.