AirAsia Group expands Thai presence
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AIRASIA GROUP is establishing new businesses in Thailand, ranging from insurance to communications and entertainment, as it anticipates growing market demand once the Asean Economic Community is realised next year.
Tony Fernandes, chief executive officer of AirAsia Group, said it would continue to focus on its Tune Insurance unit, which was rebranded from Osotspa Insurance after the Malaysia-based group completed the acquisition of the Thai firm in May for Bt700 million.
Next year, AirAsia plans to add more on-board entertainment services like Tune Box on its flights into and out Thailand. It is also waiting for approval for a communications business.
It has also been reported that AirAsia may be interested in running a private-jet business called Tune Jet, which would soon take over M Jet from Minor International. If true, this would be the first time a low-cost airline has got into the super-luxury service. However, Fernandes denied AirAsia was in talks with Minor International Group.
He said Tune Insurance Thailand was confident not only of building a secure foundation for the company in this region, but also of providing a wide range of insurance solutions and services to its people.
“We believe that the brand is already identifiable in Thailand, as it is available to all travellers on AirAsia flights through online booking. The market in Thailand is huge.”
He said Tune Insurance had great potential to expand its service base and grow rapidly in Thailand, as it is designed to offer simple and affordable coverage, with high service quality and prompt claims settlements.
Aside from existing customers at Osotspa, Tune Insurance expects to have more than 4,000 student customers from an Osotspa affiliate at Bangkok University.
Tune Insurance’s niche is travel coverage, and it claims it has generated favourable feedback and gathered a strong following in this region.
It also offers personal accident, fire, automobile, marine and miscellaneous insurance, including industrial all risks, construction all risks and erection all risks.
Apart from its ventures with AirAsia, Tune Insurance plans to roll out new joint campaigns with retail business partners, including in the food sector and educational institutions.
