Airasia keen to buy digital platforms to boost digital business

1 min readUpdated May 26, 2025May 10, 201910:56 PM

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Airasia Group Bhd is keen to acquire digital platforms abroad to boost its digital business segment.

AirAsia Group chief executive officer Tan Sri Tony Fernandes said: “For sure…some will be M&A (merger and acquisition), some will be joint-ventures.”

Asked which country the group was eyeing, he said: “Wait and see.”

Fernandes was speaking to reporters after launching a brand new rooftop at AirAsia RedQ here, tonight. Also present was AirAsia executive chairman Datuk Kamarudin Meranun.

Going forward, Fernandes said digital business would become a large part of the group’s revenue.

“But I don’t want to make any prediction but many years ago I said ancillary income will be a big part of our business, and it became 25 percent. I believe digital will be much bigger,” he added.

Commenting on the new rooftop, Fernandes said the idea was to drive integration between the staff from different departments toward an exciting digital future.

“Digital is more about department working closely together. We are on a very exciting journey turning Airasia into more than just an airline,” he added.

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What this means

AirAsia Group's aggressive pursuit of digital platform acquisitions represents a bold attempt to diversify revenue far beyond its airline origins. This strategy pressures traditional digital retailers and logistics providers by introducing a well-known brand with existing operational infrastructure. While their ancillary income previously reached 25 percent, scaling digital business to a 'much bigger' share, as Fernandes projects, presents significant integration and market penetration risks. The success will hinge on their ability to assimilate new platforms and use their brand effectively, unlike the more conventional physical expansions seen with Hilton in Japan or ZUS Coffee in Malaysia. We await the first specific acquisition announcement to gauge their chosen digital retail entry point.

Maria Santos · Retail News Asia newsroom

Questions & Answers

What is Airasia Group's primary objective for acquiring digital platforms abroad?

Airasia Group aims to acquire digital platforms overseas to significantly boost its digital business segment. This strategy is expected to make digital business a large part of the group's overall revenue in the future.

What methods does Airasia Group plan to use for its expansion into digital platforms?

The group intends to expand its digital platform business through a combination of mergers and acquisitions (M&A) and joint ventures. Tan Sri Tony Fernandes confirmed both approaches are on the cards for their strategy.

How significant does Airasia Group expect its digital business segment to become in terms of revenue?

Airasia Group believes its digital business will eventually contribute a much larger portion of revenue than previous ancillary income. Previously, ancillary income grew to 25 percent of their business.

What is the purpose of the new rooftop at AirAsia RedQ?

The new rooftop at AirAsia RedQ is intended to foster greater integration among staff from various departments. This is to encourage them to work closely together towards an exciting digital future for the company.

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