On Friday, in a statement Malaysia based AirAsia Group Bhd said, it has decided to change the name of its listed holding company to Capital A Bhd. The development comes in the wake of the company seeking market recognition of its growing portfolio of businesses beyond its core budget airline unit.
AirAsia’s airline business has taken a hard hit from the Coronavirus pandemic as a result of which Malaysia’s stock exchange has classified the company as being financially distressed; since then it has been raising funds to further strengthen its balance sheet.
Capital A has been investing heavily in payments business BigPay, logistics arm Teleport and its mobile Super App to gain other sources of revenue, though they remain in growth phases and were loss-making in the quarter ended Sept. 30, 2021.
“Over the past two years we have spent the downturn in flying building a solid foundation for a viable and successful future, which is not solely reliant on airfares alone,” said Capital A’s CEO Tony Fernandes in a statement.
He went on to add, the airline business will retain the AirAsia brand since it is well known in Asia.
“Domestic travel has already started to rebound in our key markets,” said Fernandes. “I am hopeful borders will reopen gradually throughout 2022 and we will see a return to normal capacity for our international services by the middle to third quarter of this year.”