KUALA LUMPUR: AirAsia Group Bhd is targeting its non-airline business to contribute around 60 percent to group revenue in the next five years from the current 20 percent following its business diversification.
AirAsia Group chief executive officer Tan Sri Tony Fernandes as quoted in New Straits Times said the diversification was in tandem with its focus in transforming the group into a global digital and lifestyle leader.
AirAsia’s non-airline business is led by subsidiary RedBeat Ventures, which boasts among others BigPay, BigLife, Teleports and Santan and T&CO.
The group’s latest diversification saw its venture into the music industry with the launch of its record label, RedRecords to head back to the musical roots in revolutionizing the future of Asian pop (A-Pop) culture and giving it the world wide stage it deserves.
With a 50:50 joint-venture between UMG and RedBeat Ventures, RedRecords is a new label partnership focused on signing, developing and breaking new Asian artists.
The company also plan to do music festival and short films on YouTube in making music accessible to the public.
Fernandes said as AirAsia’s customers’ lifestyle is purely related to “air tickets purchasing”, he expects the trend to be growing further with the airline’s associated products, adding that about 80 percent of the business is airline’s tickets and to shift more.