Monday 22 Jul 2024
main news image

KUALA LUMPUR (March 29): Capital A Bhd said it signed letters of intent on Friday with two Singapore-based companies for collaboration on travel and e-commerce services, as well as fintech solutions within the Asean region for airline passengers travelling to and from China.

The two companies are Advanced New Technologies (Singapore) Holding Pte Ltd (ANT), which offers digital payment and financial services solutions, and Travel Singapore Pte Ltd (Trip), a subsidiary of China-based Group Ltd, which provides hotel bookings, flight reservations and travel recommendations on its platform.

The letters of intent do not hold any commercial value and are not expected to have any financial effects on Capital A, the group said in its bourse filings.

It said the collaboration will allow the group to tap both companies' extensive user bases, thus opening new avenues for its growth.

By incorporating ANT’s AliPay payment methods, Capital A  said its units AirAsia and Move Digital will be able to offer customers a more efficient payment process, potentially leading to higher conversion rates and faster revenue recognition.

AirAsia and Move Digital will also gain access to consumer spending data and trends through AliPay payment methods, according to Capital A, which will enable more targeted marketing and better customer service strategies.

“Associating with a renowned brand like AliPay can boost AirAsia and Move Digital's credibility and appeal, especially among customers who prefer or trust digital payment platforms for their transactions,” the group said.

As for its collaboration with Trip, Capital A said the two parties will work together on joint marketing efforts to promote travel packages, loyalty programmes and exclusive deals.

They could also form a joint cybersecurity team to monitor and mitigate any fraud events proactively, it said.

“By integrating the parties’ services, the parties can offer their customers seamless travel experiences in virtual interline, enhanced ancillary offerings and comprehensive customer service,” it added

Capital A recorded a turnaround in its financial performance for the year ended Dec 31, 2023 with a net profit of RM836.99 million, compared to a net loss of RM2.63 billion in the previous year.

Capital A's share price closed unchanged at 71 sen on Friday, giving the group a market capitalisation of RM3.02 billion. Its trading volume for the days was 2.77 million shares.

Edited ByS Kanagaraju
      Text Size