The Sky’s Not the Limit – AirAsia’s Diversification Beyond Aviation
AirAsia already transformed budget travel, but can its bold diversification strategy through super app take the brand beyond the skies?
At a glance
Parent Name
Capital A
AirAsia MOVE Launched Date
January 2024
AirAsia MOVE Revenue
US$ 28.7 million
(As of Q3/2024)
Market Focus
Southeast Asia
Abstract
AirAsia, a leader in low-cost aviation, has taken a bold step in diversifying beyond its core airline business with the launch of AirAsia MOVE. This case study explores the company’s transformation into a multi-service digital ecosystem, driven by the financial strain of the COVID-19 pandemic. Under its parent company, Capital A, AirAsia leveraged its strong customer base, data insights, and brand reputation to expand revenue streams beyond ticket sales and integrate services such as flight and hotel bookings, ride-hailing, insurance, and e-wallet transactions.
Despite its potential, AirAsia MOVE faces intense competition from established players like Traveloka and Grab, along with operational and customer engagement challenges. This case study examines the effectiveness of AirAsia’s diversification strategy and the hurdles it must overcome to sustain long-term growth. It invites learners to analyze whether Capital A’s strategic shift will enable the company to thrive in the evolving digital travel landscape or risk diluting its core aviation business.
All rights reserved. © 2025 Nikkei Business Lab Asia. No part of this publication may be copied, stored, or transmitted in any form. Copying or posting is an infringement of copyright.
Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).