When you think AirAsia, what do you think of? Airlines, obviously. And yet, a sizable chunk of the Malaysia-headquartered budget carrier AirAsia Group’s revenue—23%—comes from ancillary and non-airline businesses.
In fact, the revenue from its non-airline businesses is up 189% year-on-year (YoY), contributing RM697 million (US$161.7 million) to AirAsia’s annual revenue of RM12.4 billion (US$2.9 billion) for 2019.
What are these businesses, you ask?
- Payments arm BigPay: revenue up 277% to RM16 million (US$3.7 million)
- Ticket selling platform AirAsia.com: revenue up 238% to RM27 million (US$6.2 million)
- Logistics arm Teleport: revenue grew 132% to RM481 million (US$111.2 million)
The company expects its non-airline revenue share to go up from 23% to 60% in five years five years New Straits Times AirAsia sees non-airline segment as top earner Read more , according to Aireen Omar, president of AirAsia’s digital arm RedBeat Ventures.