AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD

Page created by Loretta Morales
 
CONTINUE READING
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
AirAsia 3.0
Airline + Digital + Technology
               = The Travel & Financial Platform of Asean

April 2019

                               1                        Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
LEGAL DISCLAIMER

Information contained in our presentation is intended solely for your
personal reference and is strictly confidential. Such information is subject
to change without notice, its accuracy is not guaranteed and it may not
contain all material information concerning the Company. Neither we nor
our advisors make any representation regarding, and assumes no
responsibility or liability for, the accuracy or completeness of, or any
errors or omissions in, any information contained herein.

In addition, the information contains projections and forward-looking
statements that reflect the Company’s current views with respect to
future events and financial performance. These views are based on
current assumptions which are subject to various risks and which may
change over time. No assurance can be given that future events will occur,
that projections will be achieved, or that the Company’s assumptions are
correct. Actual results may differ materially from those projected.

This presentation is strictly not to be distributed without the explicit
consent of Company’s management under any circumstances.
                                                          2                   Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
Agenda

Achieving the unthinkable
Strengthening our underlying airline business

Digitalising the airline

AirAsia 3.0
Leveraging our data to create platforms

                                                3   Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
AAGB share price since IPO

IPO price: RM1.25
FYE 2004: RM49mn PATAMI          FYE 2018: RM1,980mn PATAMI

                             4             Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
The largest LCC in Asia
The fourth largest airline in Asia                6 airlines   3 airlines

      260 aircrafts, in 9 airlines

      100 million passengers flown annually
      500 million total passengers flown
      147 destinations
      across 23 Countries

      Over 360 routes, including
      98 unique routes

      23 hubs

      Over 10,000 flights per week

      *Fleet size and data as at Dec 2018
                                              5                     Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
Wide digital reach via AirAsia.com, mobile app and social media
                                                                      Over

                                                                      11,900,000            fans

                                                                      Over
                                                                      26,000,000            followers

                                                                      Over
                                                                      7,900,000 followers
                                                                      Over
Over560      million               Over 40   million                  1,600,000 followers
annual unique (web&app) visitors   mobile app download
                                                                      Over

                                   Hits from over
                                                                      1,900,000 followers
Over15     million                 240                                Over
contactable members
                                   different countries
                                                                      1,300,000 followers
2.9%
annual conversion rate
                                   60%
                                   Sales via web and app     Over 50     million
                                                             total fans and followers
                                                         6                              Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
Ancillary revenue growth from data & digital initiatives

                 2008                          2018
                               9x
                                                RM2.06bn

                   RM0.23bn

              9% of revenue                21% of revenue

             ✔ Baggage                     ✔ Baggage (dynamic pricing)

             ✔ Inflight F&B                 ✔ Inflight F&B

             ✔ Pick-a-seat                 ✔ Pick-a-seat (+ hot seats)

                                           ✔ Wifi

                                           ✔ Insurance

                                           ✔ Ourshop

                                           ✔ Fly-Thru

                                           ✔ Logistics
                                     7                                   Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
1Q19 operating statistics

                                AirAsia Group (MAA, IAA & PAA):
                                ● Carried 18% more passengers
                                ● Load factor strong at 88%
                                ● ASK up 11% as we added new
                                    routes and frequencies for both
                                    domestic and international routes
                                    to further grow market share

                            8                              Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
1Q19 operating statistics

                            9   Strictly private and confidential
AIRASIA 3.0 = THE TRAVEL & FINANCIAL PLATFORM OF ASEAN - AIRASIA GROUP BERHAD
Agenda

Achieving the unthinkable
Strengthening our underlying airline business

Digitalising the airline

AirAsia 3.0
Leveraging our data to create platforms

                                            10   Strictly private and confidential
We have the planes to grow to stimulate latent demand
 Equal Fleet Expansion Across AOCs in 2019
                                              MAA          TAA          IAA      PAA          AAI       AAJ          Total

January 2018*                                       84         56         23         17       14           2         196

December 2018**                                     95         62         24         22       19           2         224       6 countries:
2019 Net Addition***                                2          1          5          3            6        1             18

*January 2018 fleet for Malaysia excludes aircraft grounded for reallocation to other AOCs
** December 2018 fleet excludes 2 third party leases
*** Full Year 2019 net addition of 18 aircraft excludes 2 third party leases

                                                                                                                               Exploring others:
Target aircraft financing for 2019: All on sale and leaseback.
                                                                                                                   +30
                                                                                                                   ↷
                                                                                                       +31
                                                                               +35
                                                                                            +40
                                                                                            ↷          ↷
                                                                               ↷
                                                                    +37
                                                                    ↷
                                                         +32
                                                         ↷
                         +23              +28
      +18
      ↷                  ↷                ↷                                                                                   New A321neo aircraft
                                                                                                                              that are fuel efficient &
                                                                                                                                have lower cost per
                                                                                                                                        seat

 Note: Column chart includes 2 third party leases
                                                                                                  11           2
                                                                                                                                Strictly private and confidential
Rational competition & growing market share across AOCs

AirAsia’s Domestic Market Share & Rational Competition (2018 vs 2017)

        6ppt   58%               2ppt    32%             fla   2%        4ppt   20%                      1pp       5%
        s                        s                       t              s                               t

       4 ppts                   1 ppt                  2 ppts           3 ppts                           FLAT

       3 ppts                    1 ppt                 3 ppts           FLAT                            1 ppt

                                                         12                          Strictly private and confidential
Agenda
                                                     Data-driven organisation
Achieving the unthinkable
Strengthening our underlying airline business
                                                        DATA          USERS                COE
Digitalising the airline

AirAsia 3.0
                                                               DATA GOVERNANCE
Leveraging our data to create platforms

                                                13                    Strictly private and confidential
We have a lot of Data to drive ecosystem expansion
BIG Data and Real-time Insights

                                                                                                                                   Engine & Component

                                                  Contact Details                                     FOMAX
                                                                                                                                                 Transactions

            Online Activity                                    Demographic

                                                                                             Maintenance                                            Feedback
                                                                      Loyalty
      Mobile Activity
                                                                                                                       Aircraft
                                                                      Social Data
                                         Guests                                                                                                                  Speed
              Transactions
                                                            Lifestyle Data          Cabin Baggage Weight
                              Feedback
                                                                                                                         Queue
                                                                                Passengers                               Time
                                                                                    Weight

                                                                    Passengers Movement                                                             Apron

                                                                                                                                   Temperature
                                                                                                           Terminal                                             Location

 Available data source                                                                    Counter
                                                                                      Transactions                    Aerobridge
 Potential new data source                                                                                            Movement

                                                                                                14                                                Strictly private and confidential
Data taking us to new heights

     Priorities
                               Cost Reduction                                      Revenue Gain
     to Focus On

     Verticals
                                            Operations                               Pricing /            Promos /
     to Work On    Fuel Cost                                   Ancillary
                                            Efficiency                                Bundling             Rewards

                    Increase              Increase Cost                               Drive
     Goals         Fuel Cost                                   Increase                                 Drive More
                                           Efficiency &                              Customer
     to Achieve    Efficiency                                    Uptake                                    Traffic
                                           Productivity                             Retention

     Skill Sets
     Required
                                                                          Data Science

                                                          15                                      Strictly private and confidential
Staying true to being low-cost

    Our top priority, ALWAYS.

              Lower               Predictive           Driving fuel usage      New A321neo aircraft
             airport            maintenance to         reduction through       that are fuel efficient &
             charges               increase              data analytics          have lower cost per
                                  efficiency                                              seat

                                 Adoption of ‘Agile’         Media cost on a
                                   organisation              downtrend with
                                    structure                personalisation

                                                        16                                    Strictly private and confidential
Agenda

Achieving the unthinkable
Strengthening our underlying airline business

Digitalising the airline

AirAsia 3.0
Leveraging our data to create platforms

                                                17   Strictly private and confidential
AirAsia 3.0
    Strengthening our core airline
1   business
    ↑pax ↑ancillary ↑market share

    Digitalising the airline
2   ↑revenue ↓cost ↑insights

    Leveraging our data to
3
    create platforms
                             Guests                                                                          Belly
    ↑revenue ↑users
    ↑engagement

                                                                                                 Cargo                   Baggage

        Travel               Lifestyle         Social Commerce

                             e-Money     Remittance Lending

                                           Our aim is to also increase financial inclusion of our customers

                                                                AirAsia BIG Loyalty points
                                                                          18                                     Strictly private and confidential
We are investing in people
Building blocks laid for a platform business

         Lye Kong Wei,                   Elias Vafiadis,                        Nikunj Shanti,
       Group Head of Data       Group Head of Software Engineering         Group Head of Product
      (Formerly from Grab)           (Formerly from Expedia)              (Formerly from Expedia)

                                                        AirAsia Software Engineering & Technology Center
                                                        Bangalore, India

                                                                     19   2                          Strictly private and confidential
Agenda

Achieving the unthinkable
Strengthening our underlying airline business

Digitalising the airline

AirAsia 3.0
Leveraging our data to create platforms

                                                20   Strictly private and confidential
AirAsia.com - All-in One Travel and Lifestyle Marketplace

                                 New enhanced homepage UX/UI
                                 on web & mobile

                                    21                         Strictly private and confidential
AirAsia.com addressable market
                                                                                                      OUR VISION
                                      Asean internet
                                      economy market
                                                                                                      Now we are establishing AirAsia.com as a
                                      size (GMV, US$bn,                                               all-in-one travel and lifestyle marketplace
                                      By sector         240
                                                                       Ride-hailing
                                                                       (Online food delivery,         ☑ Transportation
                                                                29
                                                                       online transport)              ☑ Food delivery
                                                                       Online media
                                                                       (Subscription music &          ☑ Media               ☑ Community
                                                                31
                                                                       video, online gaming,          ☑ Beauty                                           Maintaining
                                                                       online advertising)                                                               our current
                                                                                                      ☑ Lifestyle deals                                  ~10%
                                                                                                      ☑ OURSHOP                                          market
                                                       72      102     E-commerce                                                                        share will
 THEN                                 Ride-hailing      8                                                                                                yield us a
   Before setting up                   Online media     10
                                                                                                                                                         potential
   AirAsia.com as a                                                                                                                                      GBV of
   separate entity:
                                                                                                                                                         US$24bn in
                                       E-commerce       23
                                                                                                      ☑ Flights             ☑ Activities
  In 2018, we estimate                                                 Online travel                  (direct & aggregator)                              2025E
                                                                78     (Online vacation
  we had ~10% market                   Online travel                   rentals, Online hotels,
                                                                                                      ☑ Hotels              ☑ Holiday packages
                                                        30
  share of the online                                                  online flights)
  travel space                                                                                        ☑ Post-booking
                                                       2018E   2025E
                                                                                                      ☑ Insurance, fintech
Source: e-Conomy Southeast Asia 2018 report by Google and Temasek                                22                                         Strictly private and confidential
BigPay - Financial Supermarket

Asia’s Money App
●   Digital challenger bank
    for Southeast Asian
    millennials and travelers
●   Democratise financial
    services with simple and
    affordable solutions for
    e-wallet, remittances,
    and lending

        500k users
                                e-Money   Advanced money management   Loans          Remittance

                                                      23                      Strictly private and confidential
AirAsia Group Belly Space Consolidation/Partnerships

                                                                                  Existing cargo supply chain is ripe for disruption:
AirAsia Group Belly Space Consolidation/Partnerships

                      Jan 2019                       Aug 2018

                                                                  Feb 2019

May 2018   Jul 2018              2Q 2019   2Q 2019

                                                                In Conversation

Full Year 2018 :
Revenue of RM206 mil.

Target for Full Year 2019 :
Revenue of RM400 mil
                                 2                                                      24                                      Strictly private and confidential
Building Teleport to enable direct businesses and consumers
    Opening our logistics infrastructure to social sellers

                                                                                        Social Commerce (C2C) is growing
                                                                                        faster than ride-hailing in Asean

ASEAN includes – MY, PH, TH, ID, VN, SG (ASEAN6)
2018-2025 Social commerce estimated at ~50% of formal e-commerce segment

Note: Illustrative mockup of product           2
Sources: Google Temasek Reports, Nomura research, Euromonitor, eCommerceiQ, news runs
                                                                                        25                             Strictly private and confidential
Key to our platform strategy is our low customer acquisition
cost built over the last two decades
Asean internet                                            Asean unicorns & funding in 2016-1H18 (US$bn)               Active users, from
economy market                                                                                                        2015 to 2018
size (GMV, US$bn,
By sector         240
                                Ride-hailing
                                (Online food delivery,    Grab               Go-Jek   10.1                              8mn          35mn
                         29
                                online transport)

                                Online media
                                (Subscription music &                                        VNG, Razer
                         31                                        1.4                                                               164mn
                                video, online gaming,                                                                  130mn
                                online advertising)

                72              E-commerce                                                   Lazada, Tokopedia,
                         102                                                  7.9
                                                                                             Shopee, Bukalapak, etc    49mn          120mn
Ride-hailing     8

 Online media    10
                                                                                                                      AirAsia’s annual unique
                                                                                                                      (web&app) visitors:
 E-commerce      23

                                Online travel
                                (Online vacation
                         78     rentals, Online hotels,
                                                             0.7                             Traveloka
                 30             online flights)
Online travel
                                                                                                                               560mn

                2018E   2025E

Source: e-Conomy Southeast Asia 2018 report by Google and Temasek               26                                              Strictly private and confidential
AirAsia vs other platforms

    Market Dominance                        ASEAN            Indonesia/ASEAN            Global        ASEAN           Indonesia/ASEAN

    Visitors (per month)                  65 million           22.2 million        750 million     MAU: 18.6mn         MAU: 28 million

    Daily active users                        ~2m                0.8mn                   n/a      Ride-hailing: 4mn Ride-hailing: 1.8m

    Hotel nights for sales                   >500k               >100k                  352mn            n/a                     n/a

    Merchants                                 40m                  n/a                   n/a            >4k                     303k
                                          (via Mastercard)                                                              (300k food merchants)

    App Downloads                                               30 million         >250 million       >110mn
                                          >40million                                                                         >100mn

    Valuation                                                  US$ 4.0 bil         US$ 17.9 bil      >US$10bn
                                          US$ 2.3 bil                                                                      ~US$10bn

Source: Publicly available company data                                       27    2                           Strictly private and confidential
Thank you
         &
     Appendix

28         Strictly private and confidential
MFRS 16
  •   To reflect what was traditionally an off balance sheet long term commitment of entity
      to reflect it in the financial statements
  •   No separate treatment for operating lease and finance leases. All treatment will reflect
      the same treatment like finance lease.
Impact to P&L in 2019:
  •   Impact post BBAM is approximately depreciation +RM1.6b, interest +RM0.5b, no more
      op lease, net PBT -RM0.13b
  •   Impact post Castlelake and BBAM is approximately +RM1.9b, interest +RM0.6b, no
      more op lease, net PBT -RM0.27b
Impact to balance sheet:
  •   +assets & + liabilities by ~RM11-14b each, net gearing ratio of 1.5 (estimate) in Dec
      2019 from net cash in non-MFRS 16 compliant Dec 2018
Impact to cashflow:
  •   Purely accounting transaction, no further cashflow impact of pre adoption and post
      adoption
Tax impact: Deferred tax (to be determined)
No breach of any financial covenants
                                                     29                                Strictly private and confidential
Aircraft monetisation exercise

                                                                          2019
BBAM                            4Q18 results
                                we recorded:
transaction                     ● BBAM’s project consultants’ fees
              Nov 2018             RM167m
              Completion of     ● accretion of interest catch up
              79 aircraft and      RM64m
              14 engines        ● net cash proceeds: RM4.4b where
              sold to BBAM         we paid a special dividend totalling
                                   RM1.3b
                                ● Debt reduced by RM7.9b
                                ● Turned net cash in Dec 2018
                                ● +MRO provisions of RM300m

Castlelake
transaction
                                          24 Dec 2018:                    8 Mar 2019:   Upon sale (target 2Q19) (estimated):
                                          Signing of:                     Amended SPA   ■ Net gain on disposal: ~RM175 million
                                          - SPA to the disposal of        signed        ■ Gross proceeds of ~RM3.13 billion
                                             Merah Aviation which will
                                                                                        ■ Net proceeds of ~RM1.30 billion (post
                                             consist of 25 aircraft (18
                                                                                          repayment of debt of RM1.9b &
                                             A320ceo & 7 A320neo
                                                                                          transaction expenses of ~RM15m)
                                          - SLB Agreement for 4 new
                                             aircraft to be delivered                   ■ +MRO provisions will be based on
                                             (A320ceo)                                    usage - cycle hours.

                                                                                 30                                               Strictly private and confidential
FY2018 Financial Highlights
Financial Performance & Operating Statistics – AirAsia Group Berhad (“AAGB”)

                    Revenue (RM mil)                                                 10%      10,638      • Profitable despite average fuel price up by
                                                                                                            33% (RM703 mil in additional fuel cost),
                                                                                                            resulting to 39% increase in fuel expenses
                    Net Operating Profit (RM mil)                                     51%        808
                                                                                                          • FY2018’s performance was largely
                                                                                                            impacted by much higher fuel cost.
                                                                                                            Recorded average fare of RM173 despite
                    Capacity                                                         18%     52,536,954
                                                                                                            the vigorous 18% capacity added

                                                                                                          • Minus one-off costs amounting to RM319
                    RASK (sen)                                                        3%       14.71        mil, normalised CASK ex-fuel grew
                                                                                                            marginally by 2% to 8.51 sen. Cost items:
                                                                                                            BBAM’s project consultants’ fees RM167
                    CASK incl. Fuel (sen)                                            12%       14.80        mil, provision for doubtful debts RM88
                                                                                                            mil, accretion of interest catch up RM64
                                                                                                            mil

Note:
Results for AirAsia Group Berhad comprises: AirAsia Malaysia, Indonesia & Philippines only      1
                                                                                                31                               Strictly private and confidential
Foreign currency, loans & fuel hedging

Our Strategy

     • Our Group’s fuel hedging strategy is based on our forward sales booking

     • Jet Kero – 52% hedged for FY2019 at USD79.40 per barrel; 40% hedged for FY2020 at USD77.55 per barrel.
       FY2021 4% at USD77.37bbl

     • Currency hedges – USD operating expenditure is 100% hedged up to September 2019

     • Interest rates – All USD loans (for aircraft) are either fixed rate loans or have fixed interest rates via interest rate
       swaps

                                            2019                        Only 31% of USD borrowings are totally unhedged:
         AirAsia Group                                                                    0%
                                                                                                       31%
                              Q1       Q2           Q3      Q4
                                                                                                                         69%

      Current Hedge Ratio    53%       52%          52%    51%

        Avg Hedge Cost
                            80.57     78.23        77.64   78.31
        (USD – Jet Kero)

       Average FY Hedge
                                            79.40                       Loans by currency: USD (88%), MYR (10%) and EUR (2%)
             Cost

                                                                   32                                        Strictly private and confidential
Dividends

   ● Committed to pay special dividends every 2
     years
   ● Dividend policy of 20% of net profit
   ● Second interim dividend       of   12sen/share
     payable on 10 April 2019
   ● Interim + special dividend – totaling to RM0.64
     for FY2018; 21.5% dividend yield
   ● Total dividends paid up over the years accounts
     for approximately one-third of our share price
     today.

   With a CASH POSITION of RM3.35 billion as of
   Dec 2018
                                                   33   Strictly private and confidential
AirAsia.com Overview
                                Business Summary

                                ● Incorporated in 2019, AirAsia.com is a regional web and mobile app            CONTENT                               COMMERCE
                                  platform for travel and lifestyle bookings in Asia                            Creative                                Best deals
                                                                                                                visuals &                              for travel &
                                ● Offers consumers travel and lifestyle products that are available for         stories, sharing                           lifestyle
                                  purchase using various payment methods, including loyalty points              of experience
                                ● Expanding beyond AirAsia’s airline network, AirAsia.com features
                                  global flights operated by other peer airlines and both proprietary and
                                  non-proprietary travel and lifestyle inventories for consumers to
                                  choose from
                                ● Built travel and lifestyle ecosystem through strategic partnerships with
                                  local and regional partners working as earn and burn channels of
                                  loyalty points for consumers

                                                                                                                                  COMMUNITY
                                                                                                                             Global community to drive
                                                                                                                                   engagement

                                Products & Services

                                                          Travel                   Lifestyle                 Content                    Beauty                     B2B

                                                   ● Flight                  ●   Shop                  ● Media                     ● Content driven        ● Marketplace for
                                                   ● Hotel / Vacation        ●   Duty Free             ● Content                     beauty marketplace      comprehensive and
                                                     Rental                  ●   F&B                     (Print + Digital)         ● Cosmetics               proprietary content
                                                   ● Flight + Hotel          ●   Health, Fitness       ● Inflight                  ● Wellness                and inventory for
  Spencer Lee (CEO)                                ● Transport               ●   Events                  Entertainment             ● Skincare                other businesses to
 Former Head of Commercial at                      ● Tours + Activities      ●   Ticketing             ● Infrastructure            ● Fragrance               plug-in and use
       AirAsia Malaysia
                                                   ● Insurance               ●   Services                (Inflight WiFi)           ● Haircare
                                                   ● Itinerary Builder                                 ● Podcast

                                                                                              34                                                          Strictly private and confidential
BigPay Overview

                                         Business Summary
                                         ● Launched in 2018, BigPay aim to democratize financial services in
                                           Asia by building a digital bank that offers consumers e-wallet service,
                                           remittance and lending
                                         ● Value proposition includes easy user experience, usability via
                                           Mastercard’s extensive network, issuance of Big Points upon top up or     Make financial services better value, more
                                           use, zero foreign exchange rate charged during international travels,       transparent and fairer for everyone
                                           and zero booking fees when booking on AirAsia.com

                                         Key Features
                                         ●   Native iOS and Android build
                                         ●   Latest tech stack & proprietary software
                                                                                                                      AirAsia Big Points                                   Best Exchange Rate
                                         ●   Seamless, mobile-only user experience                                   earn with daily spend                                 when spending abroad
                                         ●   Bank grade and biometric security
                                         ●   Peer-to-peer payments & split bills
                                         ●   Fully automated spending analytics
                                         ●   In-app card / account management                                              Save Money                                      Instant Money Transfer
                                                                                                                          on AirAsia flights                                 to your friends for free
                                         ●   Issue Mastercard / Visa card

                                         Proprietary Licences
                                                                                                                                               Expense Analytics
                                                                                                                                                  in real time
Christopher Davison (CEO)
Former Director of Clearwater Partners
 Former Investment Manager at Talis
           Capital Limited

                                             e-Money                Remittance                Lending
                                                                                                      35                                                   Strictly private and confidential
Teleport Overview
                                        Business Summary
                                        ● Today, a consolidator of belly capacity for the AirAsia group of airlines,
                                          enabling cargo carriage for businesses across 110+ cities
                                        ● Global network reach through partner airlines beyond Asia covering
                                          US, Europe, Middle East and Australia/New Zealand
                                        ● Our goal is to re-order the supply chain, with the airport as the                     AirAsia Group Belly Space Consolidation/Partnerships
                                          distribution center of the future, and make same-day cross-border
                                          fulfillment a reality
                                        ● We intend to open our platform and infrastructure to empower
                                          consumers and small businesses across Southeast Asia

                                        Affordable Air Freight
                                                                                                                                                          Jan 2019                               Aug 2018
                                      Now: AirAsia Network

                                                                                                                                                                                                                     Feb 2019

                                      Next: 8 Major Asean Cities

                                                                                                                                 May 2018      Jul 2018               2Q 2019          2Q 2019

                                      Aim: 4 Capital Cities
                                                                                                                                                                                                                  In Conversation

                                           Offering Door-to-Door Cross Border Logistics Services

Pete Chareonwongsak (CEO)
  Former COO at AirAsia Philippines
   Former Group Head of Business
           Development
                                                       First Mile Collection          Partner Warehouse               Customs Clearance                   Transportation                    Last Mile Delivery
                                                        Parcel collection in origin   Consolidation and sorting by     Outbound and inbound               Cargo terminal and                Identify various last mile
                                                        country (warehouse / pick      consignee for final delivery   custom clearance in origin      warehouse as well as cross            partners based on items
                                                           up / drop off points)         at destination country       and destination countries       docking for final delivery leg

                                                                                                                36                                                                         Strictly private and confidential
BigLife Overview
               Business Summary                                                            Products & Services
               ● Formally known as Big Loyalty and rebranded in 2019, BigLife is
                 AirAsia’s frequent flyer program aiming to power AirAsia’s greater                 Points Earn & Burn
                 ecosystem with its loyalty points as a high utility digital currency                ● Earn and use points at travel and
               ● Offers consumers earning opportunities when transacting with an                       lifestyle partner channels
                 ecosystem partner and also offers consumers the option to purchase
                                                                                                    Co-Branded Cards
                 travel and lifestyle products using the user’s point balance
                                                                                                     ● Earn extra Big Points when spending on the
               ● Provides additional benefits for its members such as exclusive
                                                                                                       co-branded credit cards
                 discounts and priority access to sale inventories
               ● Tied to AirAsia’s single sign on to maximize value for users and create            Points Exchange
                 a wholistic profile of users’ behavioral patterns                                   ● Convert your other (Citi, CIMB, Maybank) points to
                                                                                                       Big Points on Big Exchange points marketplace

               Major Customer Value Propositions

                                     Exclusive BIG Member                                            Redeem short haul flights
                                     discounts at up to 90%                                          from as low as 500 BIG Points

                                     Pay with BIG Points and                                         Shop online and earn BIG Points
                                     save more on flight bookings                                    for every cash spent

                                     24-hour priority access                                         Earn and save BIG
   TBD (CEO)                         to AirAsia sales                                                with Fave deals

                                    Full flight redemption                                           Rewards differentiated
                                    for free flights                                                 by membership statuses

                                                                               37                                               Strictly private and confidential
You can also read