AirAsia is partnering Bangkok Bank, Thailand's largest commercial bank with a credit card

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AirAsia is partnering Bangkok Bank, Thailand's largest commercial bank with a credit card

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Joint credit card to improve on low fares
YUKAKO ONO, Nikkei staff writer
BANGKOK -- Malaysian low cost carrier (LCC) AirAsia is partnering Bangkok Bank, Thailand's largest commercial bank, with a credit card that earns AirAsia Big loyalty program points and provides "convenient spending and traveling options in one credit card."


Alice Goh, left, chief executive officer of Think Big Digital, which operates the AirAsia Big loyalty program, hopes the airline’s new credit card issued by Bangkok Bank will more than triple sluggish redemption rates.
Close Alice Goh, left, chief executive officer of Think Big Digital, which operates the AirAsia Big loyalty program, hopes the airline’s new credit card issued by Bangkok Bank will more than triple sluggish redemption rates.
In a bid to woo frequent flyers amid fierce competition, this is the first time Think Big Digital, the operator of the AirAsia Big program, has tied up with a bank in Thailand to offer services similar to legacy airlines.

Alice Goh, chief executive officer of Think Big Digital, told reporters in Bangkok that AirAsia is now competing with numerous LCCs. "We want to use AirAsia Big to keep hold of our customers," she told reporters.

The partnership with Bangkok Bank followed an announcement in April that the airline was introducing fixed exchange rates for redeeming Big points similar to full-service airline mileage programs.

Previously, points varied even on the same route according to booking dates and promotions. Goh said this resulted in sluggish redemption. Among 14 million Big program members worldwide at present, only 20% are active. Goh wants to lift this to over 70% with 23 million members in the next few years by creating clearer ways to earn points.

Big points can already be earned with Citibank cards in Malaysia and CIMB cards in Indonesia. At present, the AirAsia Big scheme ties up with one credit card per country to keep arrangements simple and costs down.

Kasikornbank, Thailand's fourth largest, also partnered AirAsia with credit cards in recent years, but cardholders could not earn Big points directly when shopping with them.

The new Bangkok Bank card earns a Big point for every 20 baht ($0.59) spent, and rewards triple when AirAsia tickets are booked. Ticket bookings also carry 0% interest for three months.

Nadda Buranasiri, chief executive officer of local subsidiary Thai AirAsia X, sees loyalty programs as a marketing tool to retain existing customers, and believes AirAsia will reach new customers through Bangkok Bank's 1,120 branches around the country.

The AirAsia loyalty program is the first of its kind for Bangkok Bank. "We want to target the mass market and [the] younger generation," said Bangkok Bank Executive Vice President Shoke Na Ranong.

"Many young people are now travelling with LCCs and AirAsia is the best partner because it is the largest LCC in Thailand," said Shoke. The bank expects to issue 200,000 AirAsia cards this year, to customers with monthly wages of at least 15,000 baht.
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