AirAsia renames airline group to set it apart from digital

AirAsia Group has renamed its airline companies’ holdco as AirAsia Aviation Limited as part of a reorganisation designed to create what it said should be a clear distinction from its burgeoning digital business, the group has revealed.

“As AirAsia’s rapid transformation from an airline into a digital travel and lifestyle services group continues to gain strong momentum, the holding company for the airline group has been officially renamed,” AirAsia Group outlined in a statement on October 14.

As previously reported, during this year AirAsia Group has been seeking to raise USD300 million in efforts to expand its digital business wing AirAsia Digital as it bolsters this part of the business to offset the crippling effect of the pandemic on aviation. On July 7, AirAsia Group CEO Tony Fernandes said he was considering raising this amount by listing the digital business via a special-purpose acquisition company (SPAC) in the United States.

Bo Lingam, formerly president for airlines at the group, will take over as group chief executive of the newly named AirAsia Aviation Limited, overseeing what are currently four airlines in the group (AirAsia in Malaysia including AirAsia X, Indonesia AirAsia, Philippines AirAsia, and Thai AirAsia).

AirAsia Group remains as the holding company for “eight digital firms” including AirAsia Aviation, as well as airasia Super App, cargo and logistics venture Teleport, BigPay financial services, the edu-tech arm AirAsia Academy, engineering company Asia Digital Engineering, ground services division GTR, and the restaurant chain and food group Santan.

Looking ahead to what he assured will be “a V-shaped rebound in air travel in the near future,” Lingam said that “we will continue to review new markets to operate from in the future, like Cambodia for example, when we can connect ASEAN once again with the best value fares and lifestyle offerings.”