AirAsia aims to grow e-commerce beyond selling pla

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AirAsia is talking to potential partners to build an e-commerce app that it wants to see overtake the size of its airline business, group deputy chief executive Aireen Omar said in an interview. The carrier, which gets about one billion ringgit (S$329 million) revenue a year from its current booking engine, expects to earn 20 times more as it expands into an app that will offer lifestyle goods and services.

"This will be bigger than the airline itself," Ms Aireen said at her office at the Kuala Lumpur International Airport. "There's a lot you can do in just one app and that's what we are trying to do with our travel and lifestyle app." The budget airline, which carries 100 million passengers annually, is bolstering its digital capability to tap a regional e-commerce market that's set to increase threefold to US$240 billion by 2025, CEO and founder Tony Fernandes said last month. Premium carriers Singapore Airlines Ltd and Cathay Pacific Airways Ltd are already turning to onboard duty-free sales to boost revenue, while AirAsia's app will also offer everything from hotel bookings to beauty products and dinner vouchers.

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                                                                                                                            Reported by Miss Vicky from Cargofee