AirAsia counter staff
KUALA LUMPUR: AirAsia Bhd plans to enhance its marketing capability by entering into a joint venture (JV) with Scotland-based data analytics firm, Big Data for Humans Ltd (Bd4h), to build a software-for-service data analytics business in Asia-Pacific.
The low-cost carrier told Bursa Malaysia that its unit MadCience Consulting Sdn Bhd had signed two agreements with Bd4h -- one to subscribe to 1 million unsecured convertible loan notes for £1mil (RM5.37mil), of which half would be used to finance the JV between MadCience and Bd4h, and the other to form a 50:50 JV company Big Data for Humans APAC Ltd.
“AirAsia Bhd strives to be a data-driven business who knows its passengers, understands their preferences as well as their traveling patterns. Bd4h data science platform is able to automate insights and generate action plans that work across channels, such that it provides fast response to come up with the best offer every time customer behaviour changes,” it said.
“Using this platform, AirAsia would be able to generate potential revenue upside by targeted marketing campaigns, cross-selling and new business opportunities.”
It said Bd4h APAC, which is expected to begin operations in the fourth quarter of this year, would develop a world-class data team and ecosystem that can help to deliver the airline’s overall data strategy.
It noted that Bd4h was led by Peter Ellen and Steven Rose, who previously founded Maximyser that was sold to Oracle in June 2015 for US$160mil (RM650.6mil).
“Maximyser is a provider of cloud-based software that enables marketers to test, target and personalise what a customer sees on a Web page or app, substantially increasing engagement and revenue. Not only that, through Maximyser, both Ellen and Rose have served other airline clients which would make them familiar with the airline requirement,” AirAsia said.
Furthermore, the Bd4h JV provides AirAsia the opportunity to participate in a start-up business that has potential to provide lucrative financial returns along with the other investors.
The loan notes have an interest rate of 8% per annum and mature on Nov 30 next year, when AirAsia can either convert them into Bd4h shares or redeem the principal and accrued interest for cash.
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