Low cost airline AirAsia has invested over US$1 million in a cutting-edge airline management system - merlot.aero - to improve its operational efficiency.

Chief Operating Officer Bo Lingam said the system would optimise AirAsia's aircraft and crew utilisation, making it possible for the airline to further improve its on-time performance and minimise costs.

"With the new system in place, AirAsia will be able to boost the on-time performance of our flights and maximise the use of our aircraft to serve more routes and increase frequency," he said in a statement today.

The system, commencing rollout in November with full implementation expected by mid next year, will be used by the entire AirAsia group throughout the region and by its affiliate company, AirAsia X.

New Zealand-based merlot.aero has more than 50 years collectively in designing, developing and delivering innovative software to the aviation sector.