AirAsia changes name to Capital A to reflect new core business strategy

KUALA LUMPUR: AirAsia Group Bhd has finalised the name change of its listed holding company to Capital A Bhd to reflect its growing portfolio of travel and lifestyle businesses.

Capital A chief executive officer Tan Sri Tony Fernandes said today's announcement reinforces that the company is not just an airline anymore, reliant on airfares.

"While the airline will always retain the AirAsia brand, it has long been my firm intention, well before the COVID-19 crisis hit air transport, to leverage the strong data we have built over 20 years and incorporate industry-leading new technologies to offer a broad range of products and services.

"Our brand has continuously evolved based on driving innovation and meeting ever-changing consumer demand," he said at the group's name change announcement, here, today.

Fernandes said Capital A is not only an aviation company but it is also an investment holding company with a broad portfolio of businesses such as logistics, lifestyle and financial services.

"Just like what the airline has done from day one, all of our different lines of business will deliver the same strategy that is underscored by doing what we do best, that is making travel and everyday lifestyle services affordable, accessible and inclusive to all.

"We are now delivering more products and services under one umbrella than any other brand in Asean and with access to over 700 million people in the region, I foresee incredible growth opportunities for our brand across many different industries in all of our core markets," he said.

Fernandes explained that AirAsia has 16 products and services on its super app, providing not only the best value for air travel and deals but also everyday lifestyle needs, from food to retail and e-commerce, to same-day delivery, ride-hailing and much more.

"We are already one of the top three online travel agents (OTAs) in Asean and our super app is on track to become the leading lifestyle app in the region soon.

"All of our portfolio businesses are well on the way to becoming industry leaders in their respective fields across Southeast Asia, including BigPay, our aircraft engineering division Asia Digital Engineering (ADE), and logistics venture Teleport," he said.

According to Fernandes, the AirAsia name is one of the strongest brands in Asia and provides a solid platform for all of the group's products and services to leverage from each other.

"Even though the last two years have been the most difficult and disrupted years in the history of commercial aviation, I welcome the year ahead with much greater confidence.

"We expect our digital and non-airline revenues to contribute around 50 per cent to the group in five years," he noted.

Commenting on the impact of higher oil prices on the aviation segment, he said it was not a major worry for the group right now.

At the time of writing, the benchmark Brent crude oil stood at US$89.93 (US$1=RM4.19) per barrel, rising 0.66 per cent.

-- BERNAMA