Pandemic spurs digital embrace at Asia-Pacific airlines

April 1st 2022

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At press time, LCC group, Jetstar, said it had signed a second partner, India’s IndiGo, to its fledgling virtual interline service. Read More »

In the same week, Seoul Incheon airport announced a ground-breaking experiment in security clearance procedures. The South Korean capital city airport said it will commence trials of a new X-ray system that will eliminate the need for passengers to remove digital devices and liquids from their hand baggage as they proceed through airport checks.

The X-ray system trial will start at Seoul’s Terminal 1 in September. If successful, it will be installed at all of the airport’s check-in and transit security checkpoints by 2025.

The prospect of reduced queues at airport security, for both passengers and airlines alike, and the cost benefits of the hundreds of hours of time saved by this innovation are enormous.

These shifts from pre-pandemic practices are but two of many examples of Asia-Pacific commercial aviation seizing the moment to deeply digitise operations, revenue management and booking chains in preparation for the forecast post-COVID upturn.

IndiGo is Jetstar Group’s second virtual interline partner after Tigerair Taiwan signed for the Dohop developed offering in 2019. The LCC is the most successful and largest airline in India.

“The ability to partner with other LCCs through Dohop has opened a world of possibilities, helping customers enjoy more seamless connectivity throughout the region,” Jetstar said.

In our cover story this month, LCC boss, Bo Lingam, told Orient Aviation “the pandemic has forced us to accelerate digitising the group”. “Our first thoughts were ‘you don’t want to go to the check-in counter. You register with your face. You check in with your face. If you have a bag you use self-service. If you don’t have a bag, you walk straight to the gate and off you go’,” he said. “Our only problem is airports are not keeping up with change,” Lingam said.

Capital A, the parent of Lingam’s ASEAN-focused LCC airlines is taking industry digital change several steps further. Units of Capital A, formerly AirAsia Group, especially in profitable sub-sectors, have been hived off and are being digitised from ground up.

In Japan, global airline leader, All Nippon Airways (ANA), has developed ANA Pocket to build a next-generation mileage program. ANA Pocket allows users to earn points and miles from the distance of their daily movements and to redeem ANA flights and travel products. “A world where people can live off their miles,” ANA said.

ANA was heavily affected by the pandemic and has quickly made changes to loyalty offerings in response. Subscribers to ANA Pocket have access to a platform that connects partner businesses with ANA Group customers via digital touch points.

The mobile-based program means mileage rewards are earned for everyday activities such as walking, cycling, taking taxis or travelling on trains.

ANA Pocket functionality needs a payment platform that delivers. The airline group chose Stripe Billing whose technology makes it easy for ANA to implement and manage subscription payments.

“Small details matter when it comes to making ANA Pocket a premier experience for our most valuable and loyal customers,” said ANA X Corporation business development boss, Rina Hirooka. “Simple things like ensuring monthly subscription payments are stress-free, secure and reliable go a long way in letting our customers know how much we value them.”

ANA Group built momentum for ANA Pocket with first-month-free promotions and outreach across a variety of marketing channels. Using Stripe’s dashboard, ANA Group has an operational flow that can respond to billing errors and enhance fraud prevention.

“Helping ANA take flight again with its new offering is a great stamp of approval in our journey to assist more Japanese enterprises to transform digitally,” said Stripe Japan country lead, Daisuke Aranami. “Amidst unprecedented economic and social changes, Stripe is deploying a powerful financial services technology platform that meets ANA Group customers’ high demands.”