Malaysia’s AirAsia starts Muslim-friendly e-commerce in another push at business diversification

Malaysia’s AirAsia has started an e-commerce marketplace under its Muslim-friendly business Ikhlas as it continues to diversify its business.

The online shop retails a range of product categories including pre-packaged meals, foods, health supplements, apparel, and beauty products, the company said in a statement on Monday (March 15).

Ikhlas comes under AirAsia Digital.

The airline launched its Ikhlas business in October last year. It first said it was planning Muslim-friendly services in June 2020.

AirAsia also started a food delivery service in May last year, which it said last month it plans to expand to more Malaysian states and major regional cities. The service is part of the company’s main super app.

The low-cost carrier has been severely hit by the COVID-19 pandemic that is still limiting air travel. It let go 300 employees in June and retrenched 10% of its 24,000 workforce in October.

In January AirAsia Group started raising up to approximately 454.51 million ringgit ($112.60 million) in new funds via private placement that will be channelled mainly to fuel hedging, general working capital expenses, and aircraft leases and maintenance.

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