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KUALA LUMPUR: AirAsia
The group is seeking to raise capital to fund its digital venture arm, AirAsia Digital, said the group’s chief executive, Tan Sri Tony Fernandes.
He did not disclose the amount of the principal, but said that it does not have to be huge for the entire digital journey to be successful.
“It could be convertible debt or stocks. We built all of this (referring to AirAsia’s digital initiatives) on our own capital so far, just like we built AirAsia,” he told a news conference today.
Also present were the group’s CEO, Datuk Kamarudin Meranun, and the president of AirAsia Digital (formerly known as Redbeat Ventures), Aireen Omar.
According to Fernandes, the airline has raised some debt capital that would benefit its logistics arm, Teleport, and its food and beverage business, Santan.
Kamarudin said that diversifying the business into an all-in-one digital travel and lifestyle platform has allowed the group to cushion the impact of the shortfall on earnings after the Covid-19 pandemic.
He said the compensation would only be short-term, but enough for the group to survive.
“I don’t think anything can make up for the deficit. By the time the market is open, the aviation industry will return to its normal days and the digital business will expand.
“It will be another core business … it can be as big as the aviation business,” Kamarudin said.
Meanwhile, Fernandes said the group planned to launch a new Kuching-Langkawi route and a national route in Thailand.
He added that the group will also expand its output from Santan to Manila for the next quarter, while that of New York, the United Kingdom and China next year. – Bernama
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