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Inflight, we have started to install Internet
of Things (IoT) sensors on our aircraft in
order to keep track of the aircraft’s overall
performance. A critical component here
are the engines. Data from the sensors
would indicate, for example, whether our
engines require servicing, allowing us to
organise maintenance activities based
on need as opposed to a predetermined
schedule. While ensuring our engines
are in optimal condition at all times, it
would also significantly reduce our fuel
consumption.
The entire process of digitalising AirAsia
will necessarily take time and money. We
are currently in discussions with Airbus
to install its recently launched SkyWise
data system to serve as our centralised
platform, which we will keep enhancing
and upgrading. To reduce reliance on third
parties, in the fourth quarter of 2017, we
set up a 15-strong digital/technology team
in Bengaluru, India, and there are plans
to open another digital branch, possibly
in Bandung, Indonesia. Our target is for
AirAsia to be fully digitalised by 2020.
Meanwhile, it is encouraging to see how
readily guests are taking to our digital
initiatives. Use of mobile apps is generally
a good barometer of market’s readiness
and acceptance of an organisation’s digital
processes. During the year, most online
searches on AirAsia (65%) were done
on mobile, marking a 15% increase from
2016, with mobile accounting for 37% of
all direct bookings, exceeding our target
of 35%. We intend to keep pushing this
figure up, and have set a goal of 50% for
2018. For a better mobile experience, we
are improving the payment process by
allowing one-click purchases.
Ultimately, digital AirAsia will present a
more efficient, personalised organisation
to the market. Our business partners,
investors and regulators will have better
access to us and our operations. Our
Allstars will enjoy more fulfilling careers
with us. Most importantly, our guests will
find that while we are the most affordable
airline in the world, we are also the
smartest and most convenient way to fly.
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AirAsia Group Berhad
BUSINESS REVIEW
145