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PETALING JAYA: US Lender Willing To Lend AirAsia
Bhd US $ 1 billion for your customer data that you have accumulated from your business over the years.
AirAsia Group Bhd Chief Executive Officer Tan Sri Tony Fernandes did not reveal the name of the potential US lender, but spoke about how his new data-driven “super app” would become an equal contributor to the group’s profits with its business airlines in five years.
“The airline has created this incredible business,” he said, adding that after Covid, the app has received 50 million unique visitors every month.
“We did not rush into the digital age when we began this journey two years before the Covid-19 outbreak,” he told the media.
The contribution forecast is based on AirAsia flying 300 aircraft in five years.
He said there was potential for cash raising at the airasia.com and airline level.
“The first batch of financing will be announced at the end of this month,” he said.
Fernandes said that all the pillars of the airasia.com app have already been broken except for the fintech segment of the digital business due to the exchange fees it has to pay to credit card companies. However, it obtained a money loan license from the Ministry of Housing and Local Government to add another element to the app’s fintech business.
In a statement yesterday, AirAsia said that its Asean airasia.com super app offers more than 15 types of products and services under three main pillars, which are travel, e-commerce and fintech.
Fernandes believes that the app can compete with some of Asean’s established apps like Grab and Gojek and will provide competition in a fierce segment like food delivery.
In the lucrative food delivery business, restaurants would not have to pay a commission to airasia.com as they do with other food delivery apps, but instead would pay the food delivery driver, which translates to a commission rate of between 3% and 9% per delivery.
“Now everyone can travel, experiment, shop, eat, enjoy rewards and more with the new airasia.com super app. From travel necessities to everyday lifestyle essentials, there is something for everyone, ”said Karen Chan, CEO of airasia.com.
Fernandes said that AirAsia will not accept the delivery of new aircraft as there are many excess aircraft within the industry.
“Nobody is going to fly the same size of fleets as before Covid-19 for a couple of years, I imagine.
“My guess is that we could fly 180 planes by the end of 2021 for the whole group.
“It depends on when the borders are reopened for all of our markets,” he said. AirAsia currently has 245 aircraft.
In fact, Fernandes said the airline would return 22 planes this year to their lessors.
“I don’t see us getting into a position where we want to buy planes for several years.
“Even when you want to buy planes, there will be cheaper second-hand planes,” he said.
As for travel, Fernandes said leisure travel would likely pick up sooner than business travel.
“Short-haul, budget and leisure business travel will rebound to pre-Covid-19 level and we’re already seeing that.
“In Thailand, we have 95% of the pre-Covid-19 capacity. In fact, by the fourth quarter we will be 10% ahead of where we were.
“When the borders are reopened, (the business) will recover very quickly,” he said.
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