AirAsia Expects Big Loyalty Segment To Contribute 5 Pct To Revenue By 2018

SEPANG, Sept 8 (Bernama) -- AirAsia Bhd expects its Big Loyalty segment to start contributing at least five per cent to revenue by next year, said Group Chief Executive Officer, Tan Sri Tony Fernandes.

He said the target could be achieved with the unveiling of the low-cost airline's Freedom Flyer Programme, which allows guests to earn AirAsia Big Point through their spending on the fares.

"Right now, the AirAsia Big Loyalty programme is still loss-making but we anticipate from 2018 it will be very profitable, plus the co-brand card that we currently negotiating," he told the media after the launch of AirAsia Big Freedom Flyer Programme here today.

The Freedom Flyer Programme is based on a unique membership status system, determined by how often guests fly to earn AirAsia Big Points which can be used to redeem all flights on AirAsia with a minimum of 500 Big Points.

He said the programme was also expected to increase the airline's load factor by five per cent from between 87 per cent and 90 per cent currently.

"With the current load factor as high as 90 per cent, we can add another five per cent with other promotions and activities like this," he said.

He said AirAsia is currently collaborating with Bank CIMB Niaga in Indonesia, Bangkok Bank in Thailand and Citibank in Malaysia for a co-branding card programme, and it is now looking to create a new co-brand card with MasterCard.

"We will also be launching in the next two to three months, our own version of 'AliPay' called Big Pay and soon AirAsia guests will only pay using mobile phone instead of cash on the plane," he added.

-- BERNAMA