29 July 2009
PETALING JAYA: AirAsia Bhd yesterday signed a cooperation agreement with Tune Talk Sdn Bhd aimed at generating extra revenue and further boosting the AirAsia brand.
Incorporated on Jan 13, 2006, Tune Talk is principally involved in providing telecommunication services and other related services.
The company is 35.75%-owned by Tune Ventures Sdn Bhd, in which AirAsia group chief executive officer Datuk Seri Tony Fernandes and AirAsia deputy CEO Datuk Kamarudin Meranun are substantial shareholders.
In a filing with Bursa Malaysia, AirAsia said the rationale for the agreement was to generate extra revenue through sales of Tune Talk SIM cards and Top Up Voucher.
It was also to generate additional online ticket sales via distribution of e-gift vouchers by Tune Talk through its loyalty programmes as well as to enhance and further boost AirAsia’s branding through various advertising platforms made available by Tune Talk free of charge.
AirAsia said under the agreement, it would become the launch partner of Tune Talk and purchase 200,000 Tune Talk SIM cards (worth RM860,000) that would bear AirAsia’s and Tune Talk’s branding.
“The downside financial risks associated with the agreement are expected to be very limited because the company does not need to make extra investment to market or sell the Tune Talk SIM card or Top Up Voucher,” it said.
The products would be sold on board all AirAsia’s flights, it added.
AirAsia said it did not require the approval of its shareholders or any authorities to enter into the agreement with Tune Talk.
It also said the agreement was not expected to have a material effect on its consolidated net assets and consolidated earnings for the current year ending Dec 31.