By STAFF Writer
November 15, 2011
MALAYSIA NEWS - According to a report of The Star, the budget airline AirAsia has decided to raise its ancillary income by 20 to 30 percent in the comming years. The first quarterly income of the airline was about 439.5 million in Malayasian Ringates (RM).
AirAsia has already started a host of services which include counter-check-ins and flight transfers. It has also planned to launch a VIP service. The airline aims to raise its earnings from RM50 to about RM60 to RM65. The biggest contributor to AirAsia's ancillary income this quarter was baggage which amounted up to 36 percent. It was followed by cargo and convenience charges with 16 percent and 11 percent respectively, as reported by OSK. Ahmad Maghfur Usman, a research analyst at OSK said that their model was projected to rise to RM54, RM56, RM58 consecutively for this year and the coming two years.
However, as noted by The Star, the new services of the AirAsia airlines along with the planned BIG loyalty program, would not come without a cost.
As said by another analyst from the Maybank Investment Bank, the checks and balances in the new programs would severely cost the airlines, bringing its revenues down.
This Monday AirAsia will launch its BIG loyalty programme that would act as a prepaid paymet card. AirAsia is targeting about five million customers globally with this programme that is a total of RM15 million in transactions with BIG Cards.
This BIG Card loyalty programme is projected to earn a revenue of RM500 in the next five years.
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