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AirAsia cuts out currency risk for passengers
An innovative RBS solution has made it even easier to buy tickets for Asia’s leading low cost airline.
At a glance • AirAsia is Asia’s largest low cost airline • It has introduced a multi-currency pricing system based on the RBS FXmicropay solution • The system will make charging more transparent for the 80% of the airline’s customers that purchase seats online • Customers can see at the moment of purchase exactly how much they will be paying in their own currency without the risk of currency fluctuations
ravellers no longer need to reach for the calculator or suffer from exchange rate fluctuations after Asia’s largest low cost airline introduced a multi-currency pricing system based on the RBS FXmicropay solution. AirAsia, which operates approximately 600 flights daily to over 75 destinations across Asia, Australia and the UK, has worked with RBS for many years on aircraft finance and derivatives. The bank has, therefore, developed a clear understanding of the airline’s business model and identified a powerful case for introducing the FXmicropay platform.
AirAsia sells more than 80% of seats online, to customers in many different countries. The solution enables those passengers to know at the moment of purchase, and in the currency of their choice, exactly how much they will pay without the risk of currency fluctuations. “FXmicropay takes away the uncertainty of exchange rate fluctuation for our guests, making the purchase of flights more convenient, straightforward and transparent. We want our guests to have no surprises when they receive their credit card statements at the end of the month,” says Tony Fernandes, AirAsia Group CEO.
which is a FINRA/SIPC member and subsidiary of The Royal Bank of Scotland Group plc. While we had an existing product that was ideal for companies that dealt with a large number of online. it didn’t support some of the key currencies that were required by AirAsia. 241114) and in the US. and/or any related transaction and no reliance may be placed on RBS for investment advice or recommendations of any sort. However this shall not restrict. fuel hedging and foreign exchange derivatives. and other relevant circumstances. the technical teams within RBS expanded the system to include these essential currencies. Malaysia. there were key Asian currencies that were not supported. holding. which allowed us to identify a new product that would offer real benefits to the airline. including the Malaysian ringgit. and/or any related transaction and determine it is appropriate for you given your objectives. Global Transaction Services. Thai baht and Indonesian rupiah. incorporated in the Netherlands with limited liability. Registered in Scotland No. “AirAsia and RBS have a history of working together effectively.” For more information about how we can support your business needs. To meet AirAsia’s requirements. RBS makes no representations or warranties with respect to the information and disclaims all liability for any use you or your advisers make of the contents of this document. is in certain jurisdictions an authorised agent of The Royal Bank of Scotland plc. 90312. which provides an added service for its customers and enables the airline to manage its currency exposure more effectively. cross-border transactions. Such interest may include dealing in. The Royal Bank of Scotland plc. Andrew Sill.V.com/gbm While AirAsia was quick to recognise the system’s potential. Registered with the Chamber of Commerce in The Netherlands. such as hotel chains and airlines. and The Royal Bank of Scotland N. employees or clients may have an interest in financial instruments of the type described in this document and/or in related financial instruments. in Japan by the Financial Services Agency of Japan. please contact your relationship manager. No. Thailand and Indonesia also obtained approval from their central banks for the system. Malaysia The contents of this document are indicative and are subject to change without notice. The system will make it a much simpler and more transparent process for passengers to buy seats from AirAsia in future. RBS Country Executive. tax. in Australia by the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority ABN 30 101 464 528 (AFS Licence No. You should consult with such advisers as you deem necessary to assist you in making these determinations. or acting as market-makers in such instruments and may include providing banking.” says Fernandes. And it was all possible because of our existing relationship. securities activities are undertaken by RBS Securities Inc. says: “AirAsia is the first Asian carrier to introduce FXmicropay. in Singapore by the Monetary Authority of Singapore. RBS and its affiliates. by the New York State Banking Department and the Federal Reserve Board. The Royal Bank of Scotland N. 33002587. RBS has provided services to AirAsia in aircraft financing. RBS Country Executive. exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed. “FXmicropay was a great existing product but they needed more currencies and we were required to go beyond what was available to meet AirAsia’s needs. which links to the RBS currency trading rooms for each of the currencies to the flight booking system operated by AirAsia in real time. Registered Office: 36 St Andrew Square. The Royal Bank of Scotland plc.V. credit and other financial services to any company or issuer of securities or financial instruments referred to herein. experience.. one of the world’s most reputable banking and financial solutions providers. However. In the United States. The bank’s Aviation Capital. This document is intended for your sole use on the basis that before entering into this.000 transactions. WorldPay. it successfully processed more than 1. financial and operational resources. RBS is authorised and regulated in the UK by the Financial Services Authority. In particular. Thailand. and/or any related transaction. connected companies. AirAsia has an innovative culture and could see the advantages of FXmicropay and really encouraged us to tailor the product for their business. accounting or investment adviser or owe any fiduciary duties to you in connection with this. Adding three new currencies was not a simple task and required dedication from teams in many different countries. you will ensure that you fully understand the potential risks and return of this. The financial instruments described in this document are made in compliance with an applicable exemption from the registration requirements of the US Securities Act of 1933.V. 1052-0610 June 2010 . the way in which the platform was initially structured was not suitable for its business.V or an affiliated entity (“RBS”) will not act and has not acted as your legal. Hong Kong and the UK to deliver it successfully. while FXmicropay was capable of processing transactions in all of the G11 currencies. in Hong Kong by the Hong Kong Monetary Authority.” We’re proud to partner with RBS. IT and Credit teams worked closely together to provide the breadth of knowledge that was required. The Royal Bank of Scotland N. Andrew Sill. one of the world’s most reputable banking and financial solutions providers. “We’re proud to partner with RBS. It was a complex project and RBS drew on the expertise of its teams in Malaysia. regulatory.. Edinburgh EH2 2YB. The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.rbs. interest rates swaps. trading. Tony Fernandes Group CEO AirAsia On the day that FXmicropay went live on AirAsia’s systems. Indonesia. Singapore. RBS experts in Malaysia.
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