Recent News

Thai AirAsia to IPO soon, tweets Tony Fernandez

Thai AirAsia

Thai AirAsia

20/7/2018 – Thai AirAsia X, the joint venture of low-fare airline AirAsia and Asia Aviation is set to IPO soon, according to a tweet by AirAsia Chief Executive Tony Fernandez.

“Thai AirAsia X has huge potential and will be seeking an IPO soon and Indonesia is going to start growing with a dual hub strategy. Bali and Jakarta. We will be doing an AirAsia X group structure as well,” Fernandez tweeted.

The news came after AirAsia X has acquired another 34 Airbus SE A33neo widebodies for US$10 billion, in addition to the 66 units which was ordered back in 2016.

Five or six of the new Airbus planes will arrive in 2020 and used in Thailand, Malaysia, and Indonesia, while another 10 which are slated to use in Thailand and Indonesia will be delivered in 2021.These new planes will help Fernandez to build a pan-Asian budget airline.

However the deal took a period of two years to conclude, bringing the order backlog to the 100 A33neo widebodies worth up to US$30 billion.

It was reported that the listing of AirAsia X’s Thai unit will be part of the firm’s plan to fund the aircraft purchase.

“Last bit of work is fixing the way we do revenue management as it’s different from short haul. That’s almost complete. Network fixed. Model fixed.Organisation structure fixed. Plans bought. Revenue last bit,” added Fernandez.

According to the Chief Executive, the airline would also focus on streamlining and eliminating business pain points in the second and third quarters. Ineffective business partnerships and routes will be nullified to focus on building a sustainable model.

AirAsia X would remove peripheral routes where there is no growth in frequency and instead focus on countries where it would dominate, such as Australia, China, Japan, Korea, and India.

Thai AirAsia X is part of Malaysia’s AirAsia X Bhd and operates medium and long-haul flights out of Don Mueang International Airport in Bangkok. The carrier links Bangkok with Tokyo, Osaka, Sapporo, Seoul, Shanghai, and Shenyang (charter) using seven Airbus A330-300s.

The carrier is 49 percent owned by AirAsia X and the rest by Thai investors, led by Tassapon Bijleveld and Julpas Krueospon.

In related news, Thai AirAsia will also be launching the Chiang Mai-Taipei route starting from September 30 to serve an increasing number of Thai tourists visiting Taiwan’s capital.

Singapore’s Vouch Insurtech enters Thailand market as FairDee

Vouch Insurtech, FairDee
Singapore’s Vouch Insurtech enters Thailand market as FairDee

Vouch Insurtech, FairDee

18/7/2018 – Vouch Insurtech, an insurance platform based in Singapore is partnering with six leading Thai insurers to jointly launch FairDee, a digital insurance platform set to transform the Thai automotive insurance industry.

“Motor insurance premiums are expensive in Thailand, relative to the region, and there are few measures to prevent fraudulent claims or encourage safer driving,” explained Vouch Insurtech co-founder and county manager Thanasak Hoontrakul.

“The high rate of road accidents in Thailand resulted in a high claim frequency as much as 65% of total policies,” he added.

As a result, these are pain points for both customers, especially those who are safe drivers and do not file claims, as well as insurance firms whose claim expenses are highly eroding their profitability.

This makes up FairDee’s business model as the company aims to encourage safe driving and influence positive changes in the claims behavior among Thailand customers which are used to filing as many claims as possible.

To achieve that, FairDee takes up the business model where it will reward customers by giving up to 30% on annual premiums back to consumers who did not make any claims within that policy year.

According to FairDee’s own market research, safe drivers are penalized when premiums increase as insurers seek to cover the risks of unsafe drivers.

The research also reveals that colleagues, friends, and family are often best informed about an individual’s driving behavior.

This insight allowed FairDee to also incorporate a community cashback feature by grouping at least four customers of similar driving profiles together. Customers get 15% cashback of their premium if the entire group does not submit a claim.

FairDee works with six major insurers: Bangkok Insurance, Dhipaya insurance, MSIG Insurance, Thaivivat Insurance, Thanachart Insurance, Tokio Marine Insurance as well as one leading broker – Maxi Insurance Broker.

“I am delighted to see young professionals coming into the industry and creating an innovation which benefits both insurers and customers,” commented Thai General Insurance Association president Jiraphant Asavatanakul.

“FairDee’s insurance innovation is a great channel to promote a safe-driving culture in Thailand. The rate of car accidents directly affects car insurance premiums. Therefore, safer roads would result in affordable premiums,” he added.

Formed in 2016, Vouch Insurtech gained strong traction in 2018. The startup raised a seed round and launching in Singapore earlier this year.