AirAsia join hands with Tune Money

by **hlk** Tue 20 Sep 2011, 22:26

AirAsia Bhd has entered into a joint venture with Tune Money Sdn Bhd (TMSB) in relation to the launch of a customer loyalty programme and pre-paid card services under the brand 'BIG'.

AirAsia said the joint venture shall operate through a joint-venture company under the name of Think Big Digital Sdn Bhd, which will be equally owned by AirAsia and TMSB.

The initial share capital of the joint-venture company is RM2, comprising two ordinary shares of RM1 each.

"The parties intend to increase the share capital of the company to RM20 million comprising 20 million ordinary shares of RM1 each," the company said in a filing to Bursa Malaysia.

Under the joint venture, the new company will own, launch, market and operate the Loyalty Programme and AirAsia will issue loyalty points, which shall be sold to the joint-venture company at RM0.01 per point.

"The loyalty points shall be managed and distributed by the joint-venture company to AirAsia customers and third-party merchants.

"The loyalty points are to be collected and used to redeem AirAsia flights by the company's customers and third-party merchants," AirAsia said.

The company also said under the Loyalty Programme, TMSB will own and issue a 'BIG' branded two-in-one VISA pre-paid loyalty card, with its initial launch is slated to be in Malaysia only.

The joint-venture company will also own and issue a BIG branded loyalty card.

AirAsia said the rationale for entering into the JV is to launch an AirAsia loyalty programme to encourage consumer brand loyalty and the continued patronage of the company;s customers.

Increased revenue to the company from the sale of loyalty points and revenue to the Company as shareholders from the profit generated by the JV company is also listed as the rationale.

TMSB was incorporated on Dec 30, 2005 and is principally engaged in business as providers of financial and other related services.

Both Tan Sri Tony Fernandes and Datuk Kamarudin Meranun are also the directors of TMSB and have direct and indirect interests in the company of 53.21 per cent and 50.36 per cent, respectively.

"The joint-venture is expected to contribute positively to the future profitability of AirAsia," AirAsia added. -- Bernama