AirAsia adding services in super app

AirAsia Group announced Thursday that it is building a super app off its existing mobile application and website to provide services such as e-commerce, delivery and payments. The app is to be available next month in Thailand and Asean. AirAsia CE Tony Fernandes said the idea to build a super app came before the pandemic, but new revenue streams are desperately needed after most of AirAsia's fleet has been grounded for months because of travel restrictions. The company suffered losses of US$238m in Q2 of this year. "This journey didn't start during the pandemic -- this journey started two years ago -- but it was accelerated because of the outbreak," Fernandes said. "This is not a Plan B, this was always our Plan A, but we still think aviation will definitely come back." The new platform will be accessible through AirAsia.com and AirAsia's mobile app on Oct 8, including digital services under subsidiary AirAsia Digital. These services include BigPay, a digital payment app; Teleport, a wholly owned logistics, e-commerce and delivery business; and Santan, a food and beverage franchise. Fernandes said these services are already earning revenue for AirAsia except for BigPay, which is in negotiations with regulators to set its rates. Teleport came to Thailand in 2019 through a joint venture, while BigPay is available in Thailand and can transfer money to Thai bank accounts. Santan is only available in Malaysia or on AirAsia flights. "AirAsia's roots are from moving people from A to B and moving cargo from A to B, and that is the basis of AirAsia Digital and the basis for our platform AirAsia.com," Fernandes said. The app will also allow users to book hotels and flights (from airlines other than AirAsia) and offers a travel and lifestyle rewards programme. The company ended its partnership with Expedia and is offering its own travel booking service.<br/>