FX Optimisation for Airline

The Problem

Operating across multiple markets, Capital A faces increasing complexity in managing FX exposure.

“Capital A processes massive volumes of multi-currencies every day. Before partnering with Ant International, we leveraged existing platforms offered by banks that provide treasury management operations for our online sales platform. These various platforms update FX rates twice daily and provide margin management capability.”

Capital A needed a technology-driven treasury solution to optimise like-for-like currencies and enhance the efficiency in managing multi-currency flow.

The Solution

By leveraging Ant International’s proprietary Time-Series Transformer (TST) FX Model, Capital A is able to forecast their sales and FX exposures, improving efficiency in FX cost management. TST FX Model is a transformer architecture-based big data model with close to 2 billion parameters, including 80 million parameters of travel-related data such as open-sourced data from OTAs and air carriers. By integrating the latest time series forecasting algorithms, the TST FX Model predicts future data points by learning complex patterns from large historical data sets using AI technology.

“Ant International’s treasury management solutions help Capital A to reduce the FX costs, protect and improve our margins and reduce risk whilst improving overall operations. The model enables us to forecast our cash flows to better manage our FX exposure and operate at over 90% accuracy.”

To activate this forecasting capability and bring it into real-world execution, bank partners play a critical role. By integrating the TST FX Model with Capital A's corporate banking partner’s fixed FX rate infrastructure, Capital A simplifies FX risk management process when selling in multiple currencies. The solution helps to mitigate the risks associated with currency fluctuations by securing FX rates for a defined period. FX rates are locked in and agreed upon, giving Capital A greater predictability in budgeting, pricing and profitability.

This partnership marks a significant milestone. By pairing predictive intelligence with the bank’s fixed FX rate infrastructure, Capital A now operates with greater treasury precision, cost control, and customer trust.

“We are now able to lower the hedging cost by about 40% while keeping the costs low for our customers.”

The Result

Through its partnership with Ant International, Capital A enabled a greater financial resilience across its global operations.

Capital A Story

Capital A is an investment holding company with a diverse portfolio of synergistic aviation and travel businesses, leveraging data and technology to drive growth. Our key businesses include AirAsia, the world’s leading low-cost carrier, Capital A Aviation Services Group, AirAsia MOVE (formerly Airasia Superapp) and fintech BigPay as well as logistics venture Teleport and brand development company, Abc. Capital A’s vision is to create and deliver products and services that focus on offering the best value at the lowest cost, underpinned by robust data accumulated over 20 years in operation and one of Asia's leading brands that remains committed to serving the underserved in ASEAN and beyond.

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