Malaysia's AirAsia 3.0 moves to save costs and enhance revenue
AIRASIA has come a long way from the time it first used the Internet to sell low-cost tickets, despite much scepticism and ridicule, reported the Malaysian Star
AIRASIA has come a long way from the time it first used the Internet to sell low-cost tickets, despite much scepticism and ridicule, reported the Malaysian Star.
Now after two years of working closely with Google and other data companies, AirAsia expects the Internet to bring it more cost savings and greater revenue next year.
Group CEO Tan Sri Tony Fernandes told a group of analysts during AirAsia 3.0 investor day that he expected about four per cent less fuel burn after crunching numbers and using the right aircraft for specific routes.
With hundreds and hundreds of other fuel initiatives including spare parts, he is looking at 10 - 15 per cent cost savings by the end of 2020.
All these measures will be brought about by the airline?s move towards digitisation, which also allows it to be creative in its delivery and offering as well as personalise and segmentise product offerings.
'On the revenue side, with all the rich data we have, we are able to serve customers better in terms of personalising all that. We have never done promos, as we normally send e-mails, but now we will be much more proactive in filling up the planes.
'We also now have the ability to dynamically adjust fares on the spot and all this will help us maximise revenue and save costs,? he said.
As part of the AirAsia 3.0 initiative, the plan is to make the entire journey nicer and comfortable for the traveller while various new initiatives will be introduced.
An analyst said in a report the AirAsia 3.0 plan would solidify the airline?s business via predictive maintenance, which would result in cost savings by FY20. It will enhance online user experience by transforming AirAsia.com into an all-in-one travel and lifestyle marketplace, facilitated by its mobile payment facility BIGPay.
The carrier?s cargo arm would cover more networks while eliminating the layers in air cargo fulfilment process, the analyst said.