Malaysian budget airline AirAsia expects to generate up to MYR15million (US$4.39 million) annually from its airfreight division following the recent signing of a two-year deal with German cargo management firm Leisure Cargo GmbH.

Under the agreement which took effect May 1, Leisure Cargo has been tasked with managing airfreight for the airline on regional routes from its Kuala Lumpur hub. There are also plans to expand the arrangement to cover other hubs in the Southeast Asian nation.



AirAsia's ancillary income regional director, Abdul Nasser Abu Kassim, was quoted in the Malaysia Star as saying Leisure Cargo was now responsible for airlifting 24 tonnes of cargo on AirAsia's 56 daily flights.



The report also said AirAsia prefers to focus on its other businesses instead of its airfreight despite being capable of handling the cargo business itself, which brought in MYR20 million in 2006.



"With such an arrangement, we are able to get additional revenue and leave it to the experts," a spokesman told the Star. "We will learn from them, and who knows in the future, we can form a joint venture."



Dusseldorf-based Leisure Cargo specialises in cargo sales and marketing for carriers focussing mainly on tourism. Established in 2000, Leisure Cargo provides airlines with logistical know-how from sales and handling contracts to road feeder services on a regional or worldwide basis.