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|Deputy general director of Vietjet Air, Nguyen Thi Thuy Binh|
According to Vietjet’s deputy general director Nguyen Thi Thuy Binh, low-cost airlines tend to broaden their business scales to other segments that are a significant part of consumers’ daily lives. Specifically, Binh revealed that the platform includes banks, insurance, financial services, hotels, and consumer goods.
In fact, airlines have been looking to break into e-commerce has been repeated over the past years. Nikkei Asia cited a recent economic survey that airlines face the risk of losing $30 billion in additional service revenue for not treating arrivals like online consumers.
According to a report of the London School of Economics and Inmarsat in 2017, flights’ broadband links will offer new services like TV shows, a large selection of television channels, and online shopping. The business segments are forecast to create $130 billion global value within the next 20 years.
Airlines will be e-commerce service providers for passengers on their flights. The segment market scale is expected to reach $30 billion in 2035. The survey also revealed that as of 2035, the revenue from every passenger will increase to $17 thanks to carrying out the services.
As the low-cost airlines have been booming, the additional services are seen as lifebuoys for traditional airlines to regain their position from low-cost airlines. Accordingly, the additional services will supplement $60 billion for the global airline sector.