KUALA LUMPUR: AirAsia Group Bhd (AirAsia) believes the non-airline businesses under its subsidiary RedBeatVentures have the potential to outperform the airline business in the next two to three years.
RedBeatVentures group president Aireen Omar said the company’s revenue contribution was likely be substantial to AirAsia as the former was rapidly building its business foundation.
“There is a potential for our digital business to overtake the airline business because our RedBeat Ventures business is not only about flying from one point to another point. That’s what we are working towards too,” Aireen told the New Straits Times recently.
RedBeatVentures’ businesses include e-wallet application BigPay, travel and lifestyle technology company BigLife, cargo and logistics company Teleports, food and beverages company Santan and T&CO as well as record label company RedRecords.
Aireen said the company would continue building its businesses, while growing its presence around the region.
“At RedBeatVentures, we offer everything to the consumers for them to enjoy their journey and day to day activity. We have loyalty points, which are important as customers can use that alternately to purchase goods and earn those points and use BigPay – buyflights tickets, hotels or travel itinerary or shop at our shop,” she added.
She said RedBeat Ventures aims to promote all AirAsia’s non-airline digital businesses to create a bigger ecosystem, while improving the lifestyle of everybody.
“BigPay, Santan and T&C), Teleportsand BigLife all have their own revenue contributions. It is more than just selling an airline tickets, but the consolidated revenue will be bigger,” she said.
RedBeatVentures houses all AirAsia’s non-airline digital businesses, leveraging on the former’s assets including its network, presence and market share as well as data base.
“These are our new businesses where we created companies under the care of RedBeat Ventures, which is wholly-owned by AirAsia Group Bhd,” she said.
On Santan and T&CO establishment, Aireen said the company had seen the demand from AirAsia’s passengers requesting for the airline’s in-flight foods even when they are not flying with AirAsia.
“We think this can be a bigger business than just selling foods on the plane – as it is essentially our first ‘restaurant’ where we sell all our foods to passengers. We found that people who are not flying with us also want to buy our foods.
“Hence, we decided to own several restaurants but the bigger business model would be on franchising because we feel that we want to harness young entrepreneurial talent or talent around the region,” she said.
Aireen said the company would want to extend its effort in promoting inclusivity and giving people around the region a chance to own a business through its franchise programme.
“We hope to be able to do that very soon. This business is also about harnessing and encouraging local ingredients or produce – promoting Asean and the foods that we have in the region,” she said.
Aireen said the company would go directly to supplies in making food affordable, tastier and healthier.
“We really need to ensure the cost is low and we will find ways in trying to do that perhaps using technology to help scale up or to have a direct connection to suppliers to make it simple and fast aswell as scalable for us to approach the suppliers as well as promoting local farmers including Malaysia, Thailand, Indonesia and the Philippines.
“Generally, we look at the best place and suppliers in relation giving the best cost and quality with best value. We are looking at building business in the region. Naturally, the supplies will come around the region,” she said.
Aireen said AirAsia aspires to be more than just an airline, being a true lifestyle and travel e-commerce platform.
“We want to use a lot of technology because we feel it is the way forward in terms of simplicity and better experience, speed to market and scalability as well as market reach.
“There will be more and more businesses that will complement the airline’s business, which will create a whole ecosystem of travel and lifestyle including our BigPay and teleports logistics company,” she said.
Meanwhile, AirAsia is targeting its non-airline business to contribute around 60 per cent to group revenue in the next five years from the current 20 per cent following its business diversification.
AirAsia Group chief executive officer Tan Sri Tony Fernandes said the diversification was in tandem with its focus on transforming the group into a global digital and lifestyle leader.