AirAsia switches to digital mode as it lightens load with leasing sale

Tony Fernandes, the co-founder of AirAsia, is seeking to transform the airline into an asset-light, digitally focused firm after the US$1b sale of its leasing business, in an effort to foster sustainable growth. AirAsia, which pioneered budget air travel in Asia along the lines of Ryanair in Europe, is now building a sprawling empire that includes a payments company, logistics firm, food and beverages brands and a loyalty programme. Leveraging the profusion of customer data from its 65m-plus passengers, the focal point of the strategy is a digital push that exceeds in scale that of regional budget airlines. AirAsia will also be going head-to-head against flag carriers such as SIA which is ramping up investments in digital technology. The goal is to offset the volatile earnings from the cyclical airline business. <br/>