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PHAR Appoints VGI Global Media (SET:VGI) to Boost Outdoor Advertising Revenues for Thai AirAsia

Bangkok, May 21, 2014 - (ACN Newswire) - VGI Global Media (SET:VGI) has been selected by Phar Partnerships - Thai AirAsia's representative that oversees marketing of AirAsia's in-flight advertising space around the world - as the exclusive ambient advertising agent for Thai AirAsia, Thailand's largest low-cost carrier. PHAR believes the partnership will prove mutually rewarding and will lead to increased revenue.

Mr Kavin Kanchanapas, Executive Chairman of VGI, and Mr Marcus Wight, CEO of Phar, acting on behalf of Thai AirAsia, announced the agreement to establish a partnership where VGI would serve for three years as PHAR and Thai AirAsia's exclusive ambient advertising agent for all Thai AirAsia carriers.

Thai AirAsia, Thailand's leading low-cost carrier, flies to over 35 domestic and international destinations within the region. The airline operates with a fleet of 37 brand new Airbus A320 aircraft and has plans to receive an additional 6 more during the year. In 2013, Thai AirAsia carried over 10.5 million passengers and is expecting to exceed that number in 2014.

Mr Marut Arthakaivalvatee, VGI's chief executive officer, explained that under the partnership scheme VGI will serve as agent in respect of advertising space in both the exterior and interior of each carrier - similar to how it has been doing with the BTS skytrain system, with which its sales team has become familiar. That makes him confident that VGI - though new to in-flight advertising - will enable Thai AirAsia to enjoy enhanced advertising revenue. In addition, the project will effectively increase the company's advertising audience to include those in such Thai AirAsia destinations as Singapore, Hong Kong, China, India, Indonesia, Myanmar, Laos or Cambodia, he noted.

"Becoming the exclusive ambient advertising agent for Thai AirAsia flights poses a great pride and offers exciting challenges. We like Thai AirAsia's commitment in ensuring that 'everyone can fly', which is similar to the business concepts of the BTS system and other mass transit networks which emphasize the importance of enabling people to travel at reasonable cost and with speed. This signing also means that we will have on-ground and in-flight mass transit advertising networks. I believe that not many players in the world enjoy such extensive out-of-home advertising networks. Now the only frontier left is waterway transport," said he.

"Granted, in-flight advertising is quite new to us - in terms of audience and management. Nevertheless, I'm not concerned about the sales aspect at all, given the experience of our sales team, as well as our intensive collection of research studies on passenger behaviours in relation to commercials and the excellent relationships we have built with clients. As for installation work, we will work with PHAR to ensure the work meets our professional standards. Moreover, Thai AirAsia's professionalism and its clear goals and record of constantly adding new transport routes means that our role as the airline's advertising agent will lead to an expansion of our audience base, one of our major corporate goals. The partnership will prove beneficial and rewarding to both parties."

According to PHAR Partnerships, VGI was chosen because of its outstanding sales achievement and leading position - in terms of market share - in the mass transit and modern trade segments of the Thai advertising market, which prompted the airline to expect a satisfactory jump in advertising revenue as a result of the deal.

"It is a very exciting opportunity for PHAR (representing AirAsia) and VGI to create successful partnerships for Thai brands. VGI's expertise and size in the Thailand market makes them the outstanding partner for us to work with in maximizing ancillary revenue for AirAsia and delivering a package of rights that companies want."

About Phar Partnerships

Phar Partnerships is an international media, marketing and sponsorship consultancy. Following its launch in 2011 Phar Partnerships now employs over 60 people in UK, Singapore, Malaysia, Thailand, Indonesia, Philippines, India and Middle East. Chaired by Tony Fernandes, owner of Queens Park Rangers and the Caterham Formula 1 team and Chief Executive of Air Asia, Phar Partnerships works for clients including AirAsia, Apprentice Asia, Prasarana, Malaysian National Stadium Corporation, Pertamina, Samsung, FA Premier League, Chelsea, Bein Sports. Current advertisers in Thailand include Yamaha, Singha Corporation, Accor Hotels, K Bank and Visa.

About the AirAsia Group

AirAsia, the leading and largest low-cost carrier in Asia, services the most extensive network with 88 destinations. Within 12 years of operations, AirAsia has carried over 220 million guests and grown its fleet from just two aircraft to over 150. The airline today is proud to be a truly Asean (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia, Thailand and the Philippines servicing a network stretching across all Asean countries as well as China, India and Australia. AirAsia was named the World's Best Low Cost Airline in the annual World Airline Survey by Skytrax for five consecutive years from 2009 - 2013 and the 'World's Leading Low Cost Airline' at the 2013 World Travel Awards.

About VGI Global Media PCL

VGI Global Media Public Company Limited (SET:VGI) is Thailand's major provider of out-of-home media solutions, having more than 10,000 items of large still-image screens in the BTS skytrain network and large retail stores nationwide. It also has over 11,000 sq.m. of advertising space in the product display zones of large modern trade stores, as well as about 5,000 items of digital screens and media in the BTS platform and train areas, the Tesco Lotus, Big C, and Watson stores, and large office towers throughout Bangkok, and mega LED and outdoor led screens under its management. In addition, the company runs retail shops in 23 BTS stations and radio networks covering nearly 2,000 modern trade stores in Thailand. For more information, please see www.vgi.co.th.

Source: VGI Global Media PCL

VGI Global Media PCL
Investor Relations Department
Tel: +66-2273-8636; +66-2273-8639   
E-mail: [email protected]

MasterMind Communications Co Ltd
Orn-arong ("Fah") Pattaravejkul
Tel: +66-2612-2081 #129 
Mobile: +66-8-6884-4458
E-mail: [email protected]

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