Malaysian low-cost airline AirAsia Group plans to launch an air taxi service and the country’s first drone delivery service as the budget carrier seeks to diversify amid the coronavirus pandemic, the company’s CEO recently announced.

As part of the group’s diversification push, it also aims to launch a ride-hailing service next month as COVID-19 continues to hit air travel.

“The air taxi will have a pilot and four seats. At the moment, we have our team working on this upcoming service by AirAsia,” Chief Executive Tony Fernandes said at the Youth Economic Forum 2021, reports the state news agency Bernama.

The service should start operating in about 18 months, Fernandes was quoted as saying. He also announced that the airline’s logistics unit Teleport, which is currently testing an urban drone delivery service with state-backed firm Malaysian Global Innovation and Creativity Centre (MaGIC), would conduct its first commercial delivery by the end of this year.

Writing on Instagram, Fernandes said the group while recovering from the impact of the pandemic had used the opportunity to accelerate its digital transformation.

But the struggling airline, last month also announced its 33%-owned Japanese business, had begun bankruptcy proceedings.