Annual Report 2019

ENVIRONMENTAL IMPROVE FUEL EFFICIENCY To improve fuel efficiency, we undertook fleet upgrades and reduced aircraft weight. We have made an improvement of 11.1% since 2009, surpassing IATA’s recommendation of 7-8% Modern Young Fleet • Fully compliant with ICAO Emission Standards; • Average age of 6.1 years for A320 series, compared to global average of 11.3 years • Average fuel burn per flight: 6,157 litres of fuel, equivalent to 15 tonnes of CO 2 Emissions ‘Sharklet’ Wingtips • First airline to operate the Airbus A320 with Sharklet wingtips reducing carbon emissions caused by wing tip drag • 46.0% of AirAsia’s A320 fleet is equipped with Sharklets. All new aircraft will have this feature • Savings per flight: 185 litres of fuel, equivalent to 464 kg of CO 2 Airbus A320neo CFM • First airline in South East Asia to operate the A320neo CFM aircraft • Savings per flight of 666 litres of fuel, equivalent to 1,652 kgs of CO 2 Weight Savings Initiatives • Mirus Hawk slimline seats offer lighter designs to reduce fuel consumption by more than 70,000 litres and lower CO 2 emissions by 200 tonnes per aircraft per year • Electronic Flight Bag initiatives remove 32 kg of cockpit manuals with a 2 kg tablet, reducing 2 litres of fuel consumption equivalent to 6 kg of CO 2 emissions • Potable Water Reduction: 12 kg of CO 2 saved per flight and Discretionary 28 Fuel Savings Initiatives • 11.1% better fuel performance, and for every kg of fuel saved, 3.16kg of CO 2 emissions is avoided • Single Engine Taxi Departure provides 3.6kg/ mins fuel savings • Packs-off Take off allow 2.2kg fuel savings per take-off • Reduce Flap Landing allows 9.4kg of fuel savings per landing, equal to 29.7kg of CO 2 emissions • Idle Reverse Landing and Single Engine Taxi on arrival each provides 25.8kg of fuel savings per landing Airbus A321neo CFM • First A321neo operator in Malaysia • First of 353 A321neos on order by the AirAsia Group which will eventually replace the existing fleet of A320 and A320neo aircraft throughout the network covering Malaysia, Thailand, Indonesia, the Philippines, India and Japan • With 236 seats – a 27.0% increase in capacity compared to AirAsia’s present fleet of A320 (180 seats) and A320neo (186 seats) – the A321neo will enable AirAsia to serve strong ongoing demand across the network with significant operational efficiencies and open up opportunities to explore new destinations, with more than 10% fuel savings Compliance to CORSIA • 7 out of 8 Air Operators Certificate (AOC) to comply to CORSIA since pilot phase (beginning 1 st of Jan 2019) • AirAsia Group completed its first year of Monitoring, Reporting & Verification cycle in 2019 • Introduction of Carbon Dashboard – In-house tool to monitor fuel burnt and computes CO 2 emissions from each flight Voluntary Carbon Offsetting Option • AirAsia Group is also preparing a framework on our carbon offsetting strategy in compliance with CORSIA requirements • Under this framework, the group is also exploring the possibility to offer voluntary carbon offset for non- CORSIA flights (domestic and international non CORSIA flights) Sustainable Aviation Fuel (SAF) • In 2019, AirAsia has initiated the conversation on SAF with relevant Malaysian stakeholders including the different ministries and agencies. Airbus, Aerospace Malaysia Innovation Center (“AMIC”), petroleum company and other Malaysian aircraft operators • The formation of a national task force committee that addresses the deployment of SAF is currently in the pipeline • The use of SAF has been shown to provide significant reductions in overall CO 2 lifecycle emissions compared to fossil fuels, of up to 80% Collaboration & Exploration • Early collaboration & exploration with third-party on future aircraft concepts, focusing on zero emissions aircraft Carbon Neutral Growth We ensure compliance to Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), offer voluntary offsetting options for non- CORSIA flights Reduce net aviation CO 2 emissions by 50%, relative to 2005 levels We invest in R&D for Sustainable Aviation Jet Fuel. We also continued other ongoing fuel saving initiatives 146 MORE THAN JUST AN AIRLINE > SUSTAINABILITY STATEMENT (CONT’D)