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Airasia will soon start selling flight tickets of other airlines

By Sarah Chen
1 min read
Airasia Check
Airasia Check
In this article (5)

AirAsia’s group CEO Tony Fernandes said the Malaysian low-cost carrier’s official website will soon start selling tickets of other airlines, as it looks to generate a new form of revenue. In a Twitter post, Fernandes said that AirAsia.com will be formed as a new company under the open sourcing firm that helps in building software, Red Hat Inc.

Fernandes is confident that in time, airasia.com will generate as much gross merchandise volume (GMV) from non-AirAsia flight tickets as it does from selling AirAsia flight tickets. As of now, the GMV is $4 billion, he tweeted.

GMV indicates total sales dollar value for merchandise sold through the ecommerce platform.

Moreover, in a series of tweets, Fernandes announced that the hotel sales via the website increased 300 percent last week and is going to grow along with activities.

He added that AirAsia’s loyalty points will help drive more people, because of their database, to the platform, which claims the strongest platform among ASEAN (Association of Southeast Asian Nations).

“We have a much more powerful database and better knowledge of our customers than OTA,” he said in a tweet.

Questions & Answers

Q.

What is the primary motivation for AirAsia to start selling other airlines' tickets on its website?

A.

AirAsia aims to generate a new form of revenue by expanding its offerings. The CEO, Tony Fernandes, expects significant gross merchandise volume from these non-AirAsia flight ticket sales.

Q.

How will AirAsia.com be structured as a business entity?

A.

AirAsia.com will be established as a new company. This new entity will operate under Red Hat Inc., an open sourcing firm known for building software, as stated by Tony Fernandes.

Q.

What is the current gross merchandise volume (GMV) for AirAsia's platform?

A.

The current gross merchandise volume for AirAsia's platform is $4 billion. CEO Tony Fernandes expressed confidence that non-AirAsia flight ticket sales will eventually match this figure.

Q.

How will AirAsia's loyalty points benefit the new platform's growth?

A.

AirAsia's loyalty points are expected to attract more customers to the platform. This is due to their powerful customer database and in-depth knowledge of their user base.

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