This article first appeared in The Edge Financial Daily on April 4, 2018

KUALA LUMPUR: Malaysia Airlines Bhd will be monitoring the use of cryptocurrencies and blockchain technology as an alternative currency for settlement of payments, according to its chief commercial officer Arved von zur Muehlen.

While the airline will not be allowing cryptocurrencies or blockchain technology as a payment option for now, Von zur Muehlen said the airline will consider permitting it if the industry is regulated, the currency's volatility is within an acceptable range and if customers accept its use.

“I believe if it becomes a viable payment option, then it becomes very interesting for us. Then we will handle it as a payment channel, as we handle other forms of payment,” Von zur Muehlen told reporters when the group unveiled three digital initiatives yesterday. “If it (cryptocurrency) becomes a mainstream payment option, then we will definitely go into it,” added Von zur Muehlen, when asked whether the group will consider allowing the use of cryptocurrencies as an alternative payment settlement.

Additionally, Von zur Muehlen said the airline has been prioritising its investment in digital advancement over the last 12 months, but did not disclose any investment figures.

However, he said with “most of the infrastructure” having been built, the amount that the airline has to spend to build up digital initiatives to ride on the infrastructure becomes “manageable”. “Our studies show a continuous trend of mobile-first in aviation. More than half of Malaysians prefer to plan, research and make bookings for their trips via mobile [technology]. This shows passengers are more self-sufficient and they want more control over their travels.” Hence, Von zur Muehlen said the group will strive for the right combination of human-to-human interaction while continuously empowering its customers in the digital space, in line with its aspiration to become fully-digital. “This two [approaches], together, will give us a competitive edge.”

The three new digital initiatives that the airline announced yesterday are MHguardian, MHfeedback and MHChat, the last being an interactive Facebook messenger bot. It will be introducing three or four more digital initiatives this year.

MHfeedback and MHguardian are mobile applications. MHfeedback, now available for download, allows customers to quickly share feedback anonymously on their experience with the airline.

Targeted to be launched by the third quarter of 2018 (3Q18), MHguardian will allow parents or guardians to track unaccompanied minors throughout their travels with Malaysia Airlines.

Von zur Muehlen said MHguardian will eventually be expanded to support unaccompanied elderly passengers and passengers requiring special assistance. MHchat, available for use by 2Q18, allows customers to make bookings, payments and retrieve passengers' flight itinerary. A bot is an autonomous programme on a network that interacts with systems or users.