Connect with us

Business

Air Asia seeks to mitigate economic losses with launch of “super app”

Published

 on 

PHOTO: www.lowyat.net

Air Asia is introducing a super app, in an attempt to off-set – at least partially – the significant financial losses brought about by the Covid-19 pandemic. The mobile application shuffles Air Asia’s model as a flight and accommodation provider, to a broader platform of complimentary services. The app will offer users a variety of options, including digital payment services, delivery services, and an e-commerce platform. Air Asia Chief Executive and founder, Tony Fernandes, says the idea for the app was floated prior to the pandemic, but Covid-19 hastened its development.

Air Asia’s Thai subsidiary, the majority Thai-owned Thai Air Asia, has been back flying domestic routes around Thailand since the Civil Aviation Authority of Thailand lifted restrictions in June.

“This journey didn’t start during the pandemic, this journey started 2 years ago, but it was accelerated because of the outbreak. This is not a Plan B, this was always our Plan A, but we still think aviation will definitely come back.”

Air Asia was hit with losses of US$238 million in the second quarter of 2020 and says it desperately needs to seek new sources of revenue while the economic effects of Covid-19 continue to be felt around the globe. The Bangkok Post reports that from October 8, users in Thailand and the wider ASEAN region can access the new app through the company’s website or through its existing mobile app.

Fernandes says payment and logistics services will be provided by the airline’s subsidiary operation, Air Asia Digital. Users will be able to book flights (including those of other airlines) and hotels, as well as enroling in a rewards programme.

“Air Asia’s roots are from moving people from A to B and moving cargo from A to B, and that is the basis of Air Asia Digital and the basis for our platform AirAsia.com.”

The app is expected to face tough competition from super apps Grab and Gojek, currently understood to be in merger talks. Should a merger go ahead, the combined operation would create a monopoly on food delivery and car-hailing services in the ASEAN region. However, Fernandes remains optimistic, with the airline hoping to complement existing services.

“I don’t believe we are here to compete, but here to complement. Airlines always see us as competitors, but we complemented the full service and created a new market that was not there. Before, only a few people could fly, now everyone can fly, and in the same way we will complement the market.”

SOURCE: Bangkok Post

Catch up with the latest daily “Thailand News Today” here on The Thaiger.

YouTube video

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

A seasoned writer, with a degree in Creative Writing. Over ten years' experience in producing blog and magazine articles, news reports and website content.

Follow Thaiger by email:

Thailand5 hours ago

Woman smashes up her 1.5 million baht car over feud with Ford Thailand

Bangkok6 hours ago

1.8 billion baht in donations at the Erawan shrine in 2022

Phuket7 hours ago

Phuket welcomes 4 million tourists in 8 months

Sponsored2 days ago

From regulation to cannabis delivery, here’s what you need to know about cannabis in Thailand

Tourism8 hours ago

Carnival Magic theme park opens in Phuket to fanfare

Video8 hours ago

Ask the Thais | Stereotypes, Racial Profiling, and Discrimination

Coronavirus (Covid-19)8 hours ago

Thailand watching BQ.1.1 variant as Covid rules ease

Join the conversation on the Thaiger Talk forums today!
Thailand9 hours ago

Military conscription in Russia could benefit Thailand’s economy

Economy9 hours ago

Economists foresee 38 baht to 1 US dollar this year

Thailand11 hours ago

Nine people hospitalised by chemical leak in Nakhon Pathom, Thailand

Thailand12 hours ago

Scams in Thailand – Common scams in Thailand to watch out for!

Expats12 hours ago

Beauty queen seeking asylum will not be sent to Myanmar

Weather13 hours ago

Tropical Storm Noru is about to hit Thailand

Thailand1 day ago

Thailand News Today | Covid-19 arrival screenings to be dropped October 1

Crime1 day ago

Thai man ‘does not regret’ death of ‘crazy’ son who stabbed grandma in the genitals

Thailand1 day ago

Schoolgirl raped in a school dormitory in front of friends

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending