Tony Fernandes, Head of AirAsia, Says He’s Building the Region’s Next “Super App” | Malaysia

KUALA LUMPUR, August 31 – For AirAsia founder Tan Sri Tony Fernandes, there is a silver lining to the Covid-19 pandemic.

As his budget airline grapples with the coronavirus recession, Fernandes told the BBC in an interview recently that he and his team are working on what he hopes will be the region’s next “super app.”

Details about the app are scant, but the AirAsia founder told the British news channel that he wants it to compete with Grab, GoJek and WeChat with an all-in-one platform for food delivery, shopping, payments, entertainment and travel.

“The recession was a blessing in disguise in a way, as it allowed us to focus more on it,” Fernandes said, as quoted.

“Running an airline takes a lot of time, but we’ve been given the opportunity and time to focus on our digital business.”

With a database of more than 60 million customers, Asia’s largest budget airline already has a good starting point.

BBC reported that the AirAsia app, which will offer users a messaging service, has set its sights on multi-service super apps such as Singapore-based Grab, GoJek in Indonesia and Meituan in China.

“AirAsia has always been a digital company. We were one of the first airlines to sell online. It’s in our bloodstream, ”said Fernandes, also one of the major shareholders of the English football club Queen’s Park Rangers (QPR).

“I know a super app sounds like a lofty goal, but Grab and GoJek also started out small as food or mobility apps. Also, people also asked me the same way when I said I wanted to start AirAsia. “

The airline industry has been among the sectors most affected by the coronavirus pandemic.

AirAsia Group Bhd in July reported a net loss of RM803.85 million for the first quarter ended March 31, 2020, compared to a net profit of RM96.09 million in the same period last year.

But despite significant challenges in the airline industry, the group reported equilibrium earnings before interest, taxes, depreciation and amortization (RM29,000).

AirAsia attributed the results to its proactive capacity and cost management, along with the strong performance of the non-air businesses.

Last year, the company launched its own record label called RedRecords in association with Universal Music.

The fledgling label said it wants to discover and promote Southeast Asian stars who appeal to a Western audience.

The first major signing, Thai pop star Jannine Weigel, has already earned millions of followers on social media.

“Wow, we have something special with the record label,” Fernandes said.

“Koreans have shown how Asian music can appeal to a global audience with K-pop and there is huge potential for Southeast Asia.”