Capital A’s Teleport gets freighters amid growing revenue

Teleport — Capital A Bhd.’s logistics arm — is rolling out its own fleet of freight planes as the company looks to leverage on its new position as Southeast Asia’s biggest logistics firm, underscoring its growth ambitions for the next five years. 

Teleport Chief Executive Officer Pete Chareonwongsak said that the company has ordered three Airbus A321 freighters through parent Capital A, which operates the Air Asia airline. The first of the planes was unveiled Wednesday — debuting Teleport’s own livery — and all three planes are due to be delivered by the end of the year.

“It feels like this first five years of our plan was stop-start,” Chareonwongsak said in an interview. “We’re excited to build from a strong foundation to have freighters that allow us to join the big boys.”   

The company, started in 2018 to maximize the use of Capital A’s aircraft, currently transports 1,500 tons of cargo in Southeast Asia per month, primarily using Air Asia’s fleet of 204 passenger planes. Globally, it transports 20,000 tons of express cargo per month. 

Teleport’s ambitions include growing its own fleet of freighters to 100 and pursuing a public listing as part of Capital A’s strategy to split up its businesses in order to unlock value. “I think the next couple of years are the best to come,” said Chareonwongsak, who has been with Teleport since its inception. 

Just like its parent, Teleport’s no-frills business model is about delivering the most efficient service at the lowest cost possible. It promises 24-hour end-to-end fulfillment for any of the 80 cities it covers in Southeast Asia, and its entire workflow has been digitalized to keep costs to a minimum. 

“If it costs $50 to transport something with another company, I don’t want to bring it down to $47. We do it for $5, so it makes it more accessible,” Chareonwongsak said. 

Teleport is also looking to offer to fly competitor’s packages on it freighters once it expands to offer other companies the chance to cut delivery turnaround time in the region and encourage sharing of resources. 

The group’s diversification would help “unlock remarkable opportunities and deliver exceptional value” to customers, Capital A’s Chief Executive Officer Tony Fernandes said during the unveiling of the freighter. 

• In other highlights from the interview, Chareonwongsak said:
  • Teleport’s first-quarter revenue was $33 million, recording a net profit of $2 million. Revenue represents 6% of Capital A’s total revenue of 2.53 billion ringgit ($540 million) in the first quarter.
    • Revenue grew 17% quarter-on-quarter; company targeting $10 million net profit in 2023
  • Teleport went on a hiring spree during the pandemic years, growing from 200 employees to 676 staff now