AirAsia to promote mobile platform

0

KUCHING: Mobile services are likely to play a much bigger role in AirAsia’s online business model in future.

Last Friday, Datuk Seri Tony Fernandes, Group CEO of AirAsia Berhad told reporters that AirAsia was committed to its long-term business strategy of driving more customer traffic to their website in order to keep costs low and allow the company to pass the resulting savings on to customers in the form of lower fares.

He said that the airline was exploring the possibility of closing down its call center as it had come under fire from customers for its perceived lack of user-friendliness.

Driving customers to the Internet to get their problems solved would allow the company to do move closer to this objective while serving customers better.

Fernandes acknowledged: “It’s not a perfect solution. But for fares to remain low – which is what generally people want – we have to make some brave decisions.”

He said this in response to comments about low Internet penetration rates in East Malaysia making it difficult for locals, especially those in rural areas, to engage the company’s services online.

He said: “We want to drive to the lowest cost of distribution. Our idea is that we will not have check-in desks soon because it’s cheaper. And what we’re trying to do is make the fares cheaper.”

Fernandes was confident in the Malaysian market’s ability to learn and adapt, highlighting the company’s past and on-going success in getting more people to book flights and other travel arrangements online.

“Some 32 million people flew us. 85 per cent of those people use the internet in East Malaysia. That’s a high (level of) penetration.”

He added: “I believe this is the future. 250,000 people have already downloaded our mobile phone app.”

Fernandes disclosed that AirAsia has invested ‘a lot’ into developing its mobile platform but did not reveal the exact figure.

Currently, customers who have the AirAsia mobile app downloaded onto their mobile phones can book flights and check-in online. Information on the airline’s website shows that the AirAsia mobile phone app is available for download for BlackBerry, Android and iPhone users.

Fernandes added that the company has managed to stay competitive since it was established nine years ago largely because of its ability to keep innovating and to be disciplined while keeping true to its brand and its roots.

He said that he does not think that a mobile phone services platform will be an advantage in the long-run as technology is not exclusive and can be easily copied.

Fernandes hinted that the company would likely tie their mobile services in with customer relationship management (CRM), AirAsia Go (the airline’s online travel portal) as well as other products and services.