Fast cars, fast planes, fast football (of the British kind) — and now, fast money. Tony Fernandes has always had a maverick streak.
Asia’s answer to Richard Branson, the billionaire behind the Virgin empire, Fernandes has taken pride in taking on the big boys in aviation, and winning. Now the co-founder of AirAsia (AIABF) is taking on Silicon Valley.
Like SoftBank Corp.’s (SFTBY) founder Masayoshi Son, Fernandes is a self-made pioneer in Asia, a continent known for its family money more than its entrepreneurs. And like Softbank and Son, he is now setting up a venture-capital fund to invest in startups.
Neither 21st century tycoon exactly shuns the spotlight, either. SoftBank, backed by billions in Saudi funding, has aspirations to take on the world through its Vision Fund.
AirAsia’s aim is more modest, and set squarely on its home market in Southeast Asia, a grounded and sensible start.
AirAsia transferred its digital businesses into a new entity, RedBeat Ventures, in the middle of last year. It announced this week that it will partner with arguably Silicon Valley’s most-successful accelerator, 500 Startups, and set up a venture-capital fund, RedBeat Capital.
AirAsia is Asia’s most-successful budget airline. In a continent where collusion between “rivals” on prices and routes has been commonplace, it has fought for a place for itself by flying out of secondary airports in major cities to keep costs down.
That works, and then some. AirAsia reportedly has the lowest operational costs in the world for an airline, with a unit cost, per available seat kilometer, of 3.5 U.S. cents. That means it breaks even if its flights are only half-full (52% full, to be precise).
RedBeat Capital will be based in San Francisco, and will seek to “develop a travel-technology ecosystem,” according to Fernandes. Its remit is to find startups worthy of investment in travel, lifestyle, logistics and fintech for Southeast Asia.
Click here to read the rest of the story on Real Money at TheStreet.com.
