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AirAsia Raises Fund to Go Digital
The leading low-cost airline, AirAsia is planning to raise capital to venture into digital space. The airline is all set to launch its digital venture arm, AirAsia Digital has not disclosed the capital amount. It's Chief Executive Officer, Tan Sri Tony Fernandes stated that the fund need not be huge to make the digital journey successful.
Addressing the media, Tony says, "It could be convertible debt or equity. We built all of these (referring to AirAsia's digital initiatives) on our own capital so far, just like how we built AirAsia."
However, the airline has secured some debt capital that is expected to benefit its logistics arm, Teleport as well as the airline's food and beverage business, Santan. While Tony addressing the media, the airline's Group Executive Chairman Datuk Kamarudin Meranun and AirAsia Digital president Aireen Omar were also present.
Datuk in his speech stated that the business diversification of developing an all-in-one digital platform for travel and lifestyle has supported the airlines to handle the impact of the earnings shortfall post the COVID-19 pandemic. Further, he stated that the compensation would be a short-term measure but it would be sufficient for the group to survive the critical condition.
Datuk Kamarudin says, "I don’t think anything can compensate for the shortfall. By the time the market is open, the aviation industry will go back to its normal days and the digital business will be expanded." He adds, "It will be another core business... it can be as big as the aviation business."
The airline is also looking forward to launch a new Kuching-Langkawi route and one domestic route in Thailand. Also, AirAsia is also planning to stretch its Santan outlet to Manila by the next quarter while that of New York, the United Kingdom, and in China by next year.
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