Business

AirAsia expects non-airline business to contribute 60% of revenue

AirAsia Group chief executive officer Tan Sri Tony Fernandes

Syndicated News
Written by Syndicated News

KUALA LUMPUR — Dec. 6, 2019: AirAsia Group expects its non-airline ticketing business to contribute 60 per cent to revenue, from about 20 per cent currently, in the next five years.

The low-cost carrier has diversified into financial technology with e-wallet and accompanying prepaid credit card BigPay and food and beverage industry with the recent opening of its restaurant, Santan, and followed by its entrance in the music industry with the launch of record label RedRecords today.

“As we celebrate 18 years of operation for AirAsia, we are focused on transforming the airline into a global digital travel and lifestyle leader.

“Now we are heading back to our musical roots to revolutionise the future of Asian pop culture and give it the worldwide stage it deserves,” said group CEO Tan Sri Tony Fernandes after he had announced the group’s 50:50 joint-venture with Universal Music Group to set up RedRecords.

To-date, AirAsia’s airline ticketing business constitutes 80 per cent of its earnings.

Fernandes said the group would expand into the music and lifestyle business in a big way, as the airline company was also looking at incorporating RedVibes, a unit to organise festivals.

“We want to change the way you see concerts. We will do packages (that include hotels and tickets). Hopefully, we will bring a lot of people to Malaysia for events as well.

“While RedRecords is one piece, it is the whole infrastructure that we are looking at, that will be replicated with film. The journey continues and we will become relevant to your life,” he said.

RedRecords also announced Thai sensation Jannine Weigel as its marquee first signing today.

Weigel, a singer, songwriter, influencer, gamer and actor, has released several singles and EPs and amassed a huge following on social media, with more than 600 million views and 3.3 million followers on YouTube, in addition to 3.2 million followers on Facebook, 1.5 million on Instagram and more than 500,000 on TikTok.

RedRecords will be led by Hassan Choudhury, head of music for AirAsia Group.

The label will focus on discovering and developing talent from Southeast Asia and across the wider continent and form a clear and unique sound that reflects the diverse and rich musical culture of the continent.

RedRecords will be based in Kuala Lumpur and Los Angeles and will combine UMG’s industry-leading track record in artiste development with AirAsia’s regional and global marketing strength to expand A-Pop’s (Asian pop) reach beyond national borders and languages to reach audiences around the world.

In addition to artiste development as well as artistes and repertoire, the label will provide distribution and marketing, as well as management and agency services. — Bernama

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News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.