By D KANYAKUMARI / Pic By TMR

Digitalisation of the AirAsia Group would reduce the cost of the airline operations by 5% to 10% once it is fully implemented by the end of 2018, adding to its RM73 million annual revenue.

AirAsia Bhd said it will cut operational costs by up to 10% and add a conservative RM73 million to annual revenue when its digitalisation programme is fully implemented by end-2018.

Group CEO Tan Sri Dr Tony Fernandes (picture)  said he sees savings from fuel efficiencies and other improvements of having a fully digitalised airline.

“You see, once it is all digital — take spare-part change for example, if it is something we know ahead of time, we will be able to change it sooner with less damage caused, and hence, saving cost on additional repairs.

“Besides the two, optimisation of the cabin crew and pilots, as well as more effective training methodology will add to long-term cost saving methods,” he said.

The airline announced in November it would also enhance travellers’ experience through digitalisation.

AirAsia will use data from its operations at Changi Airport in Singapore to spear-head its digitalisation efforts, which include facial recognition that could speed up passenger management before, during and after flights.

These features include its inflight online shopping portal, ROKKI, and 3Sixty on-ground activities and loyalty programmes.

The airline had also announced plans to develop a secure entry system for trusted travellers to speed up immigration at Asean airports.

“We want to move away from emails and computers and work with more collaborative software.

“Once we go all digital, with all the data we have, we can do what Alibaba Group Holding Ltd and Amazon.com Inc have done,” he said.

Fernandes said the airline will add 30 planes to its fleet of 200 in 2018, which will increase capacity by 14%.

At the same event, Fernandes announced major changes to senior management.

Riad Asmat, presently Naza Corp Holdings Sdn Bhd director of corporate planning, strategy and business development, will become CEO for AirAsia Malaysia operations from Jan 1. The post is currently held by Fernandes.

AirAsia Malaysia CEO Aireen Omar will be designated as deputy group CEO and put in charge of non-flying services.

Group director of flight operations Captain Adrian Jerkins has also been appointed COO of the airline, while Bo Lingam will be group CEO of AirAsia’s airline business and Rozman Omar will become ED of AirAsia International Ltd.

“The new appointments bring focus to both our core airline business, as well as our digital growth businesses. Having Bo lead the airline business, brings continued strength to our operations, serving close to 70 million guests per year.

“With Aireen driving on our non-airline and digital businesses, it brings focus on disruptive growth for our new businesses.

With her insights into the industry gained over the past many years, her ability to discover new ways and many successes on her resume, Aireen is the perfect person to lead our digitalisation plan,” he said.