AirAsia plans to raise capital for digital venture

By TIN Media | Airlines Published 3 years ago on 25 September 2020
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KUALA LUMPUR:

Tan Sri Fernandes, Group Chief Executive Officer of AirAsia Group said they aim to raise capital for its new projects, AirAsia Digital.

He did not disclose the amount of the capital but said that it need not be huge to make the whole digital journey successful.

"It could be convertible debt or equity. We built all of these (referring to AirAsia's digital initiatives) on our capital so far, just like how we built AirAsia," he told a media briefing.

Also present were group executive chairman Datuk Kamarudin Meranun and AirAsia Digital (previously known as Redbeat Ventures) president Aireen Omar.

The airline has secured some debt assets, according to Fernandes, that will help Santan, its logistics industry, teleport, and the food and beverage industry.

Kamarudin said business diversification has helped the group to ease the effect of the income gap following the Covid-19 pandemic as a result of a full digital travel-and lifestyle platform.

He said the compensation would only be for a short term but enough for the group to survive. 

"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.

“It will be another core business… it can be as big as the aviation business," said Kamarudin. 

Meanwhile, Fernandes said the group aims to begin in Thailand a new route from Kuching to Langkawi, and a domestic route.

He added that by the following quarter, the company would expand its Santan branch to Manila, New York, UK, and China.


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