Malaysia-based low-cost airline AirAsia wants to diversify its business, and according to its chief executive officer Karen Chan, around 50 percent of its revenue will come from non-aviation sources. According to reports, AirAsia wants to transform into a lifestyle brand.
Karen Chan told the media, “We anticipate in five years time, basically by the end of 2024, that 50 percent of revenue would be coming from non-flight related non-aviation-related revenue.”
“Not all the flights are always full, and the load factor will not be 100 percent. So the unsold infantry, and because they are so perishable, even as an 85 percent load factor for an Airbus A320, I still have about 20 to 25 seats unsold. I will now be able to bundle that unsold inventory for one ringgit or 25 cents with the hotel’s direct inventory. And I will be able to go into the market with a best buys guarantee. We can go and expand into where other airlines are just not able to do so. We actually want to go and be seen as basically a lifestyle partner.”
Founder Tony Fernandes revealed last year that the airline is working on a new super app that will compete with the likes of Southeast Asian giants such as Grab and Gojek. The aviation industry has been hit hard by the coronavirus pandemic and through the super app, AirAsia is looking for a new way to generate income. The super app which AirAsia is working on will be an all-in-one app for food delivery, shopping, payments, entertainment and travel.
