Malaysia’s AirAsia Group intends to change its name to Capital A, reflecting a business portfolio that stretches beyond its core airlines to cargo delivery and financial technology. The group said it would launch its food delivery service in Indonesia by early 2022 and has opened applications for potential partners in the country.
The decision has been greenlit by the Companies Commission of Malaysia.
Over the past year, AirAsia has made significant leaps in realizing its super-app ambitions by unveiling AirAsia Ride, a ride-hailing service that will focus primarily on airport transportation for flight passengers.
The group’s air carrier business is expected to retain the AirAsia brand after the corporate name change.
Founded by Malaysian entrepreneur Tony Fernandes, AirAsia has expanded into the Asian tech sector, with investments in food delivery, ride-hailing and financial services. The group also has applied for a license to engage in digital banking in Malaysia.
Travel restrictions due to the pandemic continue to batter Asian airlines. AirAsia posted a loss of 2.2 billion ringgit (US$527 million) for the nine months ended September.
AirAsia has raised capital against these headwinds, completing a 975 million ringgit fundraising round at the end of December.
While the change in name is subject to approval from shareholders at a general meeting to be convened at a later date, it is expected to keep the AirAsia brand for its air carrier business.
Recently, AirAsia Digital scrapped its plans for a US$10 million acquisition of Velox Fintech, a unit of Gojek Thailand. The Malaysia-based firm, however, completed the acquisition of another business under Gojek Thailand – Velox Technology – for US$40 million.