AirAsia’s disposal of non-core businesses yielded US$1.5b in sales – Fernandes

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KUALA LUMPUR (Aug 15): Low cost carrier AirAsia Group Bhd’s disposal of non-core business ventures have yielded some US$1.5 billion in sales, according to its group chief executive officer Tan Sri Tony Fernandes.

Tweeting from his handle @tonyfernandes, he said; “Our joint venture (JV) and subsidiary sales have yielded us about US$1.5 billion. But wait till we get value for our three unicorns @bigpaymeapp @travel3Sixty Redbox logistics and Ourshop.”

The JV and subsidiaries Fernandes alluded to were units such as travel portal travel360, logistics arms Redbox and Red Cargo, retail portal Ourshop, as well as digital wallet BigPay and point programme BIG Loyalty under RedBeat Ventures.

Fernandes also commented on AirAsia’s disposal of its remaining 25% stake in online travel agency AAE Travel Pte Ltd to Expedia Inc for US$60 million (RM240 million) yesterday as part of plans to monetise its investment in the JV company and increase the budget airline's working capital.

“Good to get Expedia (sale) done. A good return on our investment and now free to go build some of these unicorns. Building a huge digital business. No analyst see it but (in) time, shareholders will be very pleased,” he said.