Annual Report 2019

Efficiency & Reliability At AirAsia, we ensure that our operations are cost-efficient whilst upholding the highest level of trustworthiness. For this, we have our own aircraft fleet management procedures to improve operational efficiency, reduce costs, ensure compliance with government regulations, enhance load factors (available seating capacity) and lower flight delays. We regularly maintain fleet compliance by ensuring that all aircraft used are capable in delivering better performance using less resources. On-Time Performance (“OTP”) Official Airlines Guide (“OAG”) defines OTP as flights that arrive or depart within 15 minutes of their scheduled arrival or departure times. Cancellations are also included within the OTP calculations and are counted as late flights. In 2019, both AirAsia Thailand and AirAsia Indonesia were included in Punctuality League 2020 as the World’s Top 20 most punctual airlines, ranked 10 th and 20 th respectively with an OTP of over 80%. Group-wide, our OTP improved to 81% compared to last year’s 78%. Our target of 85% was surpassed by TAA, AAJ, and TAX. Putting this into context, AirAsia and our airline affiliates are recognised by this global accreditation programme across the airlines industry as a result of continuous improvement and innovation. Required Navigation Performance-Authorisation Required (“RNP-AR”) Using the aircraft’s ability to navigate for the approach and landing on a specific path, instead of ground-based equipment, reducing carbon emissions at 14 airports nationwide. AirAsia was the first in Malaysia to operate RNP-AR and Malaysia has the largest network of RNP-AR procedures in the world (4000+ tonnes of CO2 emissions saved from 2015). OptiClimb Intended to reduce the aircraft’s fuel consumption during the climb phase, which is the most fuel-consuming phase of a flight, OptiClimb uses digital flight data to accurately determine and analyse each aircraft’s aerodynamic characteristics to recommend an ideal climb profile using customised climb speed changes at different altitudes for each flight and aircraft (estimated 55,584 tonnes of CO 2 emissions per year saved). Cost & Fuel-Efficient Aircraft With the aim of operating in a sustainable and cost-effective manner, AirAsia has opted for fuel-efficient and capacity enhancement approaches, notably through the introduction of new aircrafts. In November 2019, the Group received our first Airbus 321neo which is more fuel efficient and carries a larger capacity than the Airbus 320neo. With an additional 50 seats compared to A320neo, A321neo is expected to save approximately 10% of fuel. Also, A321neo carries an additional one-hour range, allowing us to tap into new market opportunities in populous routes and slot-constrained markets. 1 Punctuality League is the industry’s most comprehensive ranking of on-time performance (OTP) for the world’s largest airlines and airports, released by OAG, the world’s leading provider of travel data and insight. Source: https://www.nst.com.my/news/nation/2020/01/553174/garuda-indonesia-most-punctual-airline-world. In 2019, AirAsia Group converted 253 of its backlogs of A320neo aircraft into the larger, more efficient A321neo. The Group took delivery of four A321neo aircrafts by December 2019. In August 2019, the Group’s long-haul sister airline - AirAsia X also sealed a deal with Airbus for an additional twelve (12) A330neos (replacing an MOU for 30 additional A330neo announced in 2018) as well as purchasing 30 A321XLR. ECONOMIC 136 MORE THAN JUST AN AIRLINE > SUSTAINABILITY STATEMENT (CONT’D)