The AirAsia Group formally announced on January 28th that it had switched its name to Capital A. With several projects under its belt, the company has taken the opportunity to kick off the new year with a new identity.
Time for a change
AirAsia was founded in December 1993 and soon became a force in Malaysian aviation. However, after nearly three decades, it has become more than just a low-cost carrier. Along with its portfolio of airline partnerships across Asia, it is now a trusted digital travel and lifestyle services conglomerate.
Capital A notes that it has 16 products and services on its Super App, which has 50 million monthly unique visitors. Across the board, the company has an increasing stronghold in logistics, e-commerce, edutech, engineering, and grocery fulfillment. The firm is looking to scale up this momentum following a $100 million cash injection into its fintech project, BigPay.
Not a complete overhaul
Regardless, airline flight services will remain a key part of the business. With this in mind, the AirAsia name will remain when it comes to carrier operations. So, passengers will keep seeing the famous logo on liveries for years to come.
“Our brand has continuously evolved based on driving innovation and meeting ever-changing consumer demand. The strategy behind the change of name is to introduce a new corporate identity that better reflects the Group’s core businesses today and its future undertakings, in tandem with our rapid transformation from an airline into a one-stop digital travel and lifestyle services group. We believe that the new company name will also further enhance the marketability of our products and boost the success of our Group for the long haul,” Capital A CEO Tony Fernandes shared in a company statement.
“Essentially Capital A is an investment company with a broad portfolio of businesses which all deliver the best value at the lowest cost, supported by strong data built up over two decades. We also have one of Asia's leading brands to ride on, a strong people-first culture and an underlying promise of remaining committed to serving the underserved in all that we do. Just like what the airline has done from day one, all of our different lines of business will deliver the same strategy that is underscored by doing what we do best - making travel and everyday lifestyle services affordable, accessible and inclusive to all.”
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Business sense
It’s not unusual for airline groups to have a different name to the customer-facing carrier brands that it works on. A notable example is International Airlines Group (IAG), which is the parent of Aer Lingus, British Airways Iberia, Level, and Vueling. However, unlike Capital A's projects, these operators have notable distinctions between them when it comes to branding and operations.
Nonetheless, as Capital A’s presence across the business spectrum grows, it has given itself better flexibility to separate the core company from the airline brands. For instance, Facebook, Inc recently changed its name to Meta, distinguishing itself from the Facebook social media platform that it owns. It initially rose through the ranks with solely the Facebook brand, but it acquired other names such as WhatsApp and Instagram along the way.
Like Facebook, Capital A has launched and collaborated with numerous other brands in recent years. So, just as how Meta was announced to mark a new era in the company’s mission, Capital A wanted to kick off 2022 with a renewed focus.
Capital A is evidently proud of the AirAsia brand and the achievements that have come with it. However, it feels that it's time for an evolution in this next chapter.
What are your thoughts about the rebranding of the AirAsia Group to Capital A? What do you make of this switch by the company? Let us know what you think of the overall initiative in the comment section.