LONDON: AirAsia’s collaboration with Google Cloud will enable the budget airline to reinvent its business model to drive revenue and keep airline ticket prices low, amid rising trend in oil prices.
AirAsia Group Chief Executive Officer Tan Sri Tony Fernandes said no matter how efficient airlines are, the main constraint is rising oil prices.
“We want more people to fly and to keep airline tickets low. This means we have to find ways to cover costs by using new platforms to drive revenue from other ancillary services such as hotel bookings and deals,” he said on the first day of the Google Cloud Next’18 conference and industry exhibition here Wednesday.
The Google Cloud Next’18 is a two-day global event taking place in London from Oct 10-11, a platform for industry experts to share innovation and experiences in cloud computing.
Fernandes emphasised that with Google Cloud technology, AirAsia could leverage on a new platform to sell not just airline tickets but to further expand opportunities in other ancillary services.
“By building on the digital business, we can monetise our data and customer base,” he said.
He said AirAsia had already built a strong customer base through its website.
“AirAsia’s website has attracted over 30 million visitors a month, where they would buy flight tickets and all related services,” he added.
He stressed that in a very challenging airline industry, AirAsia is still able to grow, after having started 17 years ago with two planes, to 250 planes currently.
“We have grown from 200 staff when we started to over 20,000 staff now. Passengers volume is expected to reach 90 million this year,” he said.
Last year, AirAsia registered over 60 million passengers.