Annual Report 2019

Travel Protection Our signature Tune Protect Travel - AirAsia comes with more than 20 benefits that serve travellers before, during and after their trips. Our insurance partner, Tune Protect, also offers One- Hour Flight Delay and On-Time Guarantee coverage bundled with AirAsia Value Pack, Premium Flex and Flatbed products. Other lifestyle offerings include adventure, gadget and shopping protection. During the year, Tune Protect expanded its range of offerings with more lifestyle-centred products such as an annual travel plan for frequent travellers, baggage protection and cover for smart devices. To enhance take-up rates, Tune Protect conducted more targeted marketing while also carrying out an online revenue optimisation initiative in Malaysia, Thailand, Indonesia and Singapore. This entailed the use of differentiated messaging and pricing tailored to the different customer segments as well as more user- friendly page layouts. Its offline Syariah-compliant Travel Takaful product was also expanded from Indonesia to Vietnam, Macau, Bangladesh, Sri Lanka and the Maldives. Initiatives such as these contributed to sales of close to 10 million policies in 2019. Bundled products performed especially well with policies issued growing 14.5% year-on-year. GROUND TEAM RED Ground Team Red Holdings (GTR) was established in 2017 to provide technology-based ground handling services for AirAsia and third-party airlines in Malaysia and Singapore. Since its inception, the 50:50 joint venture (JV) with Singapore’s SATS Limited has made significant progress, setting up a fully digitalised Airport Control Centre in klia2 while also venturing into cargo handling service. In 2019, much focus was on developing this new business area. The year saw the launch of GTR’s Air Cargo Hub at KLIA Air Cargo Terminal 1 (KACT1). Located at the former low-cost carrier terminal in Sepang, the facility spans 93,000 sq ft, adding to storage space of the existing 40,000 sq ft warehouse. The combined facilities will enhance GTR’s logistics handling capacity to 300,000 tonnes of air freight annually, contributing to Malaysia’s goal of becoming a regional logistics hub. Other than Kuala Lumpur, GTR has expanded its cargo handling services to Alor Setar, Kota Bharu, Terengganu, Langkawi and Labuan — all in Malaysia. LOGISTICS CAPACITY 300,000 tonnes STORAGE SPACE 93,000 sq ft GROUND TEAM RED 104 MORE THAN JUST AN AIRLINE > BUSINESS REVIEW (CONT’D)