Malaysian low-cost carrier AirAsia is taking the first steps towards starting its own loyalty programme.
The airline has signed an agreement to start a joint venture with financial services firm Tune Money to launch a programme called "BIG", it said in a statement to the Malaysian stock exchange.
Through this programme, it will issue loyalty points to AirAsia customers and third party merchants. These points can then be collected and used to redeem AirAsia flights, it added.
The programme will encourage "consumer brand loyalty" and increase revenue through the sale of loyalty points and from the profits generated by the joint venture, added AirAsia.
The loyalty programme will initially be launched in Malaysia, but that is likely to be extended to all of the AirAsia franchises in the region. Apart from its Malaysian business, AirAsia has associate carriers in Thailand and Indonesia. It is also setting up associates in the Philippines, Vietnam and Japan. The carrier also has an investor in AirAsia X, the long-haul low-cost carrier.
Tune Money's major shareholders are Tony Fernandes, Group CEO and founder of AirAsia, and Kamarudin Meranun, AirAsia's deputy Group CEO, co-founder and Fernandes' business partner.
Source: Air Transport Intelligence news
