Annual Report 2019

AirAsia’s development and launch of the AirAsia Virtual Allstar (“AVA”), a continuous learning AI-powered chat platform, won the Silver award in the Future Travel Experience Asia Awards 2019. AVA speaks and connects with various airline systems as well as interact with customers in multiple languages, handling 25,000 chats at any one time via the AirAsia app, website, Facebook Messenger and WeChat. Our results have been notable with live chat waiting time reduced from 45 minutes to less than three (3) minutes. Social media response time has been brought down to less than 10 minutes, while complaints and mitigated duplicate cases have also been reduced. Supply Chain Management AirAsia has a Supplier Code of Conduct (“SCOC”) which all suppliers are expected to follow. There are six (6) principles under the SCOC, covering the following: • Business Integrity and Conflict of Interest • Labour Practices • Confidentiality and Personal Data Protection • Environmental Health & Safety Management • Social Responsibility • Competitive Pricing & Terms Our suppliers are to be advocates of our ethical and responsible business practices, by communicating and applying the SCOC and relevant policies throughout the value chain. Sustainability topics are considered and have been incorporated into our questionnaires when conducting supplier risk assessments. Supplier performance is monitored and evaluated under our Supplier Performance Evaluation Policy to ensure the quality of goods or services sourced is maintained, cost reduced, and supply risk minimised. AirAsia has also developed a Contract Policy to manage Group procurement. This reporting year, all airline entities excluding AirAsia India have a total of 3,860 suppliers who are local. Most of our main suppliers are from the engineering sector. Of the total spending on suppliers (excluding fuel, aircraft purchase and lessor), 35.1% are on local suppliers. Indicators FY2017 FY2018 FY2019 Number of Local Suppliers excluding Fuel, Aircraft Purchase & Lessor 2,235 4,999 3,860 Percentage (%) of Total Spending on Suppliers who are Local 30.3% 34.1% 35.1% Total Spending on Local Suppliers (RM) 572,597,786 663,823,177 622,002,369 We have customer services such as our Live Chat, Twitter (@AirAsiaSupport), Facebook Messenger, Voicemail Service, WeChat, Online submissions (e-form) to provide fast, personalise assistance for our guests pre and post flight booking which is available 24 hours daily Survey email is available 24 hours daily. This is triggered by the closure of the customer case, as a way for us to get immediate feedback from the guest regarding the service they received from our Live Chat and Social Media agents AirAsia Sales Offices, AirAsia Travel & Service Centres, AirAsia Counter (Guest services) to assist guest for flight purchase or flight arrival/departure AIRASIA GROUP BERHAD ANNUAL REPORT 2019 135 SUSTAINABILITY STATEMENT