Tag: Capital A

Kuala Lumpur, Malaysia – Malaysian aviation and travel services group and parent company of AirAsia, Capital A, has recently announced that it has entered into a non-binding letter of offer with AirAsia X Berhad (AAX) for the proposed disposal of its aviation businesses, which makes up AirAsia Berhad (AirAsia Malaysia) and AirAsia Aviation Group Limited (AirAsia subsidiaries in Thailand, Indonesia, Philippines, and Cambodia).

The strategic move is aimed at streamlining the group and facilitating a business-centric valuation of the separate entities, potentially unlocking greater value to shareholders, and aiming to create a pure play entity that aligns with market preferences. 

In a press release, AirAsia stated that it is confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognised for their intrinsic value and potential. 

Capital A’s companies, including Teleport (logistics), Capital A Aviation Services (MRO and Inflight), and MOVE digital, will also be raising capital, offering shareholders an uplift on their Capital A shares, complemented by shares in the enlarged aviation group under proposed shares distribution. 

Following the sale of the aviation business, Capital A shareholders will become shareholders of the two listed companies.

With the completion of the aviation disposal, Capital A is committed to presenting a comprehensive PN17 regularisation plan by June 2024. Furthermore, Capital A is dedicated to transparent communication and will provide all stakeholders with detailed information throughout this process.

Regarding this, Tony Fernandes, CEO of Capital A, said, “All businesses across Capital A have been thriving and we are ready to grow. We need to raise funds for business expansion, but gaining access to capital has been challenging due to Capital A’s Practice Note 17 (PN17) status. We have been engaging committed investors who have expressed a strong preference for a pure aviation play.”

Talking about the disposal, Fernandes mentioned, “To address this and to ensure a robust financial injection, we are strategically pursuing the sale of the aviation business to AAX to create an aviation pure play, consolidating both long and short-haul airlines under the AirAsia brand, subject to the negotiation of a definitive share sale and purchase agreement and its completion.”

“Following the disposal, the aviation business is poised to benefit from focused management and a well-defined strategic direction, which will boost the aviation business’s capacity to seize growth opportunities, expand market share, and ultimately achieve enhanced profitability,” he added.

Kuala Lumpur, Malaysia – airasia Digital, the digital arm of Capital A, has announced its rebrand to MOVE Digital, or simply MOVE. This rebranding marks an exciting chapter in its next phase of growth through both its businesses, airasia Superapp and BigPay. 

Following this, airasia Superapp will also undergo a brand refresh and change its name to ‘airasia move’ in the near future as part of the ongoing transformation.

Through the rebranding effort, AirAsia co-founder and Capital A CEO Tony Fernandes will serve as MOVE’s executive chairman. He will play a pivotal role in driving the close collaboration between both airasia Superapp (now airasia move) and BigPay to unlock the true potential and synergy of these digital businesses. 

“The name MOVE signifies us better as the digital arm of Capital A, and reiterates our commitment to move people, ideas and innovation forward within the travel space. Imagine seamless access to travel and financial services on one single platform, with integrated financial features such as balance display, top-up and payments from BigPay and further strengthening the value proposition of airasia move as the travel app of choice,” he explained.

Fernandes added, “My role as the executive chairman of MOVE will be to enhance synergy between both businesses. With this change, the market can expect an enriching user experience aside from more integration of BigPay features within the airasia Superapp (now airasia move) very soon.”

He also noted that the company is also welcoming Nadia Omer as the new chief executive officer of airasia move, where her key priority will be to further drive airasia move’s vision as a low-cost travel platform with high conversion, while closely collaborating with BigPay, led by Zubin Rada Krishnan.

“The airasia Superapp, or what will be called airasia move soon, has swiftly become a one-stop travel platform offering value and convenience through seamless end-to-end booking experiences within the past two years, while BigPay has established itself as an innovative fintech provider enabling Southeast Asians to improve their lives through better financial management,” Fernandes concluded.

Cebu City, Philippines – Capital ACapital A’s campaign for diversity, ‘Time To Listen’, to release special single, the investment holding company of lowcost airline AirAsia, has announced a partnership with UnionDigital Bank, the digital bank subsidiary of Union Bank of the Philippines. Through this partnership, Capital A’s subsidiaries namely AirAsia, airasia Superapp, and BigPay will be involved and will extend its presence in the Southeast Asian markets of Malaysia, Singapore, Thailand, Indonesia and the Philippines.

The new partnership was announced during the recent APEC Business Advisory Council (ABAC) meeting press conference.

Through the partnership, UnionDigital Bank’s role will be to provide embedded finance in partnership with BigPay within the airasia Superapp travel platform, the main booking channel for AirAsia flights in the Philippines.

Moreover, the partnership will enhance the travel experience of frequent fliers with flexible payment options with a Fly Now, Pay Later offer available in airasia Superapp, and exclusive co-branding deals. This will create a progressive shift in the way customers plan and pay for their flights and other travel-related services, making fintech more convenient and accessible for Filipinos. 

Tony Fernandes, CEO at Capital A, said, “For Capital A, the vision has always been to provide low cost, best value services, connecting people and realising dreams, for people of Asean and beyond. With UnionDigital as our proud partner, we are now on our way to create a future where travel meets innovative financial solutions that facilitate everyone’s dream journeys with unparalleled ease. We look forward to working with UnionDigital to redefine travel coupled with fintech as an accessible and enriching experience.”

He added, “Data has shown that 7 out of 10 of our customers in the Philippines save up for their travel plans, carefully budgeting to ensure they can explore the world comfortably. It is this inspiring dedication that fuels our determination to break down barriers and create a more connected and inclusive global community.”

Meanwhile, Zubin Rada Krishnan, CEO of BigPay, commented, “As tourism flourishes in the region, we are excited to elevate the end-to-end travel and payment experience of Filipinos through our collaboration with UnionDigital Bank and airasia. Through this partnership, BigPay is one step closer to making our financial services highly accessible in the Philippines, with the mission of empowering people to level up their lives, one transaction at a time.”

Lastly, Henry Aguda, president and CEO at UnionDigital Bank, said, “This is a pivotal moment for the two important sectors in the Philippines. We are forging a path towards greater convenience, accessibility, and innovation to empower Filipinos to live better lives. As we make these partnership announcements at ABAC, we are not just setting the stage but building a solid foundation for a brighter future with BigPay and AirAsia by our side.”

Kuala Lumpur, Malaysia – Capital A, the holding company of low-cost airline airasia, has launched a new entity called ‘airasia brand co.’. It has also appointed Rudy Khaw, most recently the chief brand officer at airasia, has been named the entity’s chief executive officer.

The airasia brand entity, which also sees Capital A CEO Tony Fernandes taking charge of the chairman role, will take ownership of the brand’s intellectual property (IP) portfolio, including all brands and marks across the Capital A group.

Khaw is a seasoned brand expert and has over 16 years of experience in brand management. During his recent role, he has successfully led several strategic branding initiatives for airasia that resulted in significant revenue growth.

Speaking on his new role, he said that through the new entity, they will explore new and exciting ways to connect with people through expanding airasia’s brand influence across diverse industries, unlocking its true potential.

“The airasia brand has become a symbol of value, quality, and connection. Our red planes have become an icon in the Asean aviation industry; together with our brand exposure work over the last 22 years, the airasia brand has gone from a little known brand in Malaysia, to an Asean and now a global brand seen all over the world. We are thrilled to embark on this new venture and take our brand to even greater heights,” he said.

Meanwhile, Fernandes commented that they aim to set new benchmarks in brand development and extend their brand’s relevance and create meaningful experiences beyond transactions for millions of airasia fans worldwide.

“The launch of airasia brand co. marks a significant milestone for all of us. The airasia brand is something we have always taken pride in – built by our Allstars, and we recognise its immense potential to go beyond aviation. I am confident that with Rudy’s expertise in brand management and his proven ability to drive growth, we will be able to find new spaces for people to express brand love and loyalty,” he stated.

Kuala Lumpur, Malaysia – BigPay, a financial services company venture from Capital A, has announced that Zubin Rada Krishnan, recently the country head for BigPay Malaysia, as its acting chief executive officer following the news of CEO and co-founder Salim Dhanani stepping down from his role to pursue new ventures outside of the company.

Before joining BigPay, Krishnan was a partner with the Boston Consulting Group for over six years, where he focused on financial services, including: the design of digital banks in Singapore and Malaysia; large-scale bank operating model transformations; and the build & launch of innovative digital products. He was also a co-founder of Tuas Capital Partners, a private equity fund. 

Prior to that he also played a strategy role at Hong Leong Bank where he helped set up a new subsidiary in Vietnam, and supported Malaysia’s last major retail banking merger. He began his career in KPMG Business Advisory, supporting financial institutions across financial risk and strategy.

Speaking on his appointment, Krishnan said that they have a stellar team behind the business, who are instrumental in deepening and expanding their footprint in Malaysia and across ASEAN, with a planned launch in Thailand later this year, followed by Indonesia and the Philippines.

“I am excited to be given this opportunity to drive BigPay’s mission. I will leverage my nearly 20 years of experience across financial services and capital markets to better provide our customers with the accessible and supportive products they need to live better lives. With an increased focus on our customers and deeper collaboration with airasia Superapp, I am confident in achieving greater growth for BigPay, which saw 56% YoY growth in revenue and a 43% improvement in gross profit margins,” he said.

Meanwhile, Colin Currie, president and CEO at airasia Digital commented, “The management would like to thank Salim for his leadership as CEO since December 2020, and for being a part of BigPay’s journey to challenge conventional banking in Asean. We are excited to welcome Zubin Rada Krishnan as acting Group CEO of BigPay, who has been the country head for Malaysia for nearly a year.” 

He added, “Zubin takes the helm of this great company at a time of strong, sustained performance and we are confident that he will continue to grow BigPay’s mission of giving Southeast Asians the financial services they need to level up their lives, one transaction at a time. We are excited for BigPay’s next step as we seek to tighten our links with AirAsia guests to provide a seamless travel payment experience within the Capital A ecosystem.”

Lastly, Dhanani said, “It has been an immensely humbling experience serving as the CEO of BigPay, securing capital to scale, developing a suite of financial services for our customers and diversifying revenue streams since inception. I trust that the amazing team I’ve had the privilege to work with will ensure that we have a sustainable business model scaling within the AirAsia and Capital A ecosystem as BigPay embarks on the next chapter with the new leadership.”

Kuala Lumpur, Malaysia – AirAsia X, the long-haul budget airline under the airasia airline fleet, has announced that Tony Fernandes is stepping down from his role as acting group CEO role of the airline. According to AirAsia X, Fernandes will focus on his much-larger role as the group CEO of Capital A.

“I am confident that AAX will come back stronger providing a great value mid-range travel, led by the senior leadership teams in Malaysia and Thailand. I’m now going to focus on delivering significant value to shareholders of Capital A, including the AirAsia Aviation Group, aviation services, logistics, travel, fintech and the e-commerce lifestyle platform,” Fernandes said.

Fernandes’ resignation from the AirAsia X board comes months after Rafidah Aziz stepped down from her role as chairman of AirAsia X.

“I went in with a clear mandate to restart AirAsia X and bring it back to life from hibernation. I am happy that this has been accomplished with a very edifying plan for 20 aircraft for the AAX Group— 13 aircraft for AAX and seven for Thai AAX,” Fernandes added.

AirAsia X has also announced the appointment of Tunku Dato’ Mahmood Fawzy will be appointed as the independent non-executive director of Thai AirAsia X (TAAX).

“I am thrilled to join the TAAX board of directors as the Group embarks on our new phase of growth as a predominantly mid-range airline. Our strategy is to focus on flying our most popular and profitable medium haul routes first, which have proven to be successful in the past including leveraging cargo operations in key markets,” Fawzy said.

Sepang, Malaysia – Capital A has officially launched IKHLAS, its Muslim-friendly travel and lifestyle platform. The platform promises to offer convenience, affordability and accessibility for Muslims to perform their religious obligations as well as a shariah-compliant lifestyle.

Among the key highlights of IKHLAS’ offerings are the affordable and convenient IKHLAS Umrah packages in partnership with licensed umrah operator Ikhlas Com Travel and Umrah Sdn Bhd. Most importantly, Muslim travellers can now confidently travel with IKHLAS, offering a wide range of value-for-money halal travel packages with extensive destinations across the whole AirAsia network.

“We built the IKHLAS brand at the height of the pandemic. While all businesses struggle to stay afloat, we took the opportunity to re-strategise and made full use of one of the platform’s offering, Sadaqah, to run donation drives and help Muslims in Malaysia and around the globe in their time of need,” explained Datuk Kamarudin Meranun, Capital A Executive Chairman, who came up with the idea of IKHLAS with Group Chief Executive Officer of Capital A, Tony Fernandes.

IKHLAS started business in April 2020 and took the opportunity of the downtime during the pandemic to accelerate its development to be airasia Super App’s full-fledged Muslim-friendly travel and lifestyle platform. Spurred by the resumption of AirAsia X flights to Jeddah and many other interesting destinations, IKHLAS is now able to offer many affordable umrah and other travel packages. 

Other services available on the IKHLAS platform include digital access to faith-based practices such as Qurban and Zakat as well as other Shariah-compliant lifestyle services including Aqiqah, Fidyah and Sadaqah. On top of that, ‘Shop with IKHLAS’ also offers more than 1,000 products such as prayer items, groceries, fashion, books, jewellery and household it no ems.

Chief Executive Officer of IKHLAS, Ikhlas Kamarudin, said, “Within just two short years, we have managed to grow the IKHLAS platform exponentially, which supports the Muslim communities and organisations through a digital ecosystem and transforming the way they perform their Deen.”

Kamarudin added, “Besides the ready-made Umrah packages that we currently offer, we will also be introducing more flexible, do-it-yourself (DIY) Travel and Umrah options, where travellers can customise their trips by selecting their flights, hotels, activities and other add-ons that are curated specifically for Muslims.”

In conjunction with Rabi’ Ul-Awwal, the third month in the Islamic calendar and the birth month of the beloved Prophet Muhammad (PBUH), the launch event was graced by a beautiful rendition of ‘Selawat’ by international singer-songwriter, Sandhy Sondoro who hails from Indonesia. The lyrics were written by Datuk Kamarudin and composed by Sandhy himself.

Kuala Lumpur, Malaysia – Following the recent launch of the #TimeToListen campaign video highlighting all forms of diversity, Capital A has announced that it has signed one of the campaign’s ambassadors Airliftz for a record deal that would further the diversity platform of the campaign. The deal was inked by airasia Super App’s entertainment venture RedRecords. 

‘Time To Listen’ campaign by Capital A

The 23-year old Kajang boy, Aliff Shaharom, who goes by the artist moniker Aliftz was born with a nose missing cartilage, making him instantly recognizable by his unconventional appearance. In the five-minute campaign previously released on the company’s YouTube, the young musician talked about his struggles in overcoming social prejudice and discrimination growing up.

The rapper and producer said the spunky pop-punk single ‘NOT TODAY’ draws from his own life story of obstacles and challenges, and hopes it can spark hope for change for those who are ready to listen.

“I feel so honoured to be able to share my life story for the #TimeToListen campaign and inspire others with my message. I am very grateful to be given the voice to speak and feel confident to face the world with music charting new territories with the latest record deal with RedRecords,” said Airliftz.

Content strategist at AirAsia Izal Azlee said the company felt that it was a fitting cause for the young artist to inspire and represent a generation, hence, the platform for Airliftz to speak his truth.

“We were so touched by Airliftz’s story of perseverance and determination that we handpicked him to deliver the message for our #TimeToListen campaign,” said Azlee.

Airliftz’s journey as a young, genre-fluid artist spans the better part of a decade. Since the inception of his career in 2016, Airliftz has repeatedly proven himself to naysayers and sceptics by beating the odds and achieving new heights. 

CEO of RedRecords Hassan Choudhury said, “When we first saw Airliftz, we were immediately moved by his story and blown away by his talent and the burgeoning star power, and signed him on the spot as the label’s first Malaysian artist. As a joint venture with Universal Music Group, we are very proud of what he has achieved in the music industry, especially his debut single which will soon be available on all music platforms. We truly believe it can inspire others to tell the world their unique stories.”

The ‘NOT TODAY’ single will be available on all digital platforms from 11 March, and will also have an accompanying music video premiering at 9 pm on Airliftz’s YouTube channel.

Kuala Lumpur, Malaysia – BigPay Later, a wholly owned subsidiary of Capital A’s venture company BigPay, has announced the launch of its first personal loan product. This makes BigPay the first product to have a full digital personal lending product as part of its offering in Malaysia.

As the overwhelming demand for personal loans products continues to increase, it will be rolled out to more users over the coming weeks. In addition, BigPay Later Personal Loans is currently available to selected users.

Salim Dhanani, CEO and co-founder at BigPay, said that they believe that the launch of their personal loans product is unique with the level of transparency, the ease of use and the way in which they do their credit scoring that doesn’t only look at the history of past loans, but also at customer behaviour. He added that the launch of the personal loans product brings them one step closer to bridging the financial inclusion gap.

“The pandemic has highlighted how important it is that people have access to versatile, easy-to-use financial solutions. Many underserved demographics in Malaysia lack access to the credit they need because they do not have the typically “acceptable” credit history which is required by traditional banks – this directly impacts the ability to build long term financial standing. We have always been committed to democratising financial services through accessibility and education across Southeast Asia,” Dhanani said.

Meanwhile, Tony Fernandes, CEO at Capital A, commented, “We are very proud of BigPay Later’s launch of the first digital personal loans product. BigPay has the ability to leverage Capital A’s rich database and customers that have strong loyalty to our brands. BigPay shares the same ethos and principles as Capital A and AirAsia: focusing on affordability, accessibility as well as inclusivity. We are excited that we can disrupt once again and give the common man, from SMEs, small entrepreneurs to the mass public, the same accessibility to easy, simple loans and other outstanding financial services.”

The company notes that BigPay Later’s personal loans have competitive interest rates which are lower than standard credit card rates and easier to apply for with it being an all digital process. Users can generate an instant quote using the in-app loan calculator to ensure affordability, then fill in their personal details via the app to apply. 

Additional documents are not usually required and the application can be approved within minutes. The personal product issued by BigPay Later is fully regulated by Malaysia’s Ministry of Housing and Local Government (KPKT).

Kuala Lumpur, Malaysia – AirAsia Group Berhad, the Malaysian-based multinational company consisting of multiple endeavours from its low-cost airline to its super-app, has announced a corporate brand refresh with a new group name: Capital A. Said rebranding reflects the groups’ new core business strategy as an investment holding company with a portfolio of synergistic travel and lifestyle businesses.

It should be recalled that the announcement of the rebrand was first made through a filing on Bursa Malaysia, the stock exchange in Malaysia, on 28 December 2021.

For Tony Fernandes, CEO of AirAsia, now Capital A, the rebrand is not just about unveiling a new logo and name but rather celebrating a significant milestone that marks a new era for the Group. He also added that the announcement reinforces that they are no longer just an airline anymore.

“While the airline will always underpin the AirAsia brand, it has long been my firm intention, well before COVID hit, to leverage the strong data we have built up over 20 years and incorporate industry-leading new technologies to offer a broad range of products and services, over and above selling just airfares. The pandemic has allowed us to accelerate that strategy,” Fernandes said.

He also added that the group has continuously evolved based on driving innovation and meeting ever-changing consumer demand, stating that the strategy behind the change of name is to introduce a new corporate identity that better reflects the Group’s core businesses today and its future undertakings, in tandem with our rapid transformation from an airline into a one-stop digital travel and lifestyle services group. 

Fernandes believes that the new company name will also further enhance the marketability of their products and boost the success of the Group for the long haul.

“Essentially Capital A is an investment company with a broad portfolio of businesses which all deliver the best value at the lowest cost, supported by strong data built up over two decades. We also have one of Asia’s leading brands to ride on, a strong people-first culture and an underlying promise of remaining committed to serving the underserved in all that we do. 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 – making travel and everyday lifestyle services affordable, accessible and inclusive to all,” Fernandes explained.

In regards to the group’s airline service, Fernandes clarified that the airline won’t be changing its name, stating that it is one of the strongest brands in Asia and provides a solid platform for all of their other 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. Domestic air travel has already started to rebound in our key markets. While there may be some delays for international flights to return to pre-Covid levels due to the Omicron variant, I believe this will be short-lived as many global health experts are also predicting, alongside accelerated vaccines and booster shots as well as the world gradually learning to live with COVID,” he added.

Capital A aims to hit multiple visions by 2026, which includes its airlines connecting over 1 billion people in ASEAN, its airasia Super App being the super app of choice in ASEAN, 10 million monthly active users for their digital bank BigPay, 5 million sign ups for its edutech arm AirAsia Academy, and over 21 million monthly orders on airasia grocer, its online grocery service.

The company has long expanded its portfolio of companies and projects, from its venture to e-commerce, ride-hailing, and digital banking, towards lifestyle endeavors such as its super app, a record collaboration called Red Records, and its VTuber agency project, Project Kavvaii.