Annual Report 2020

Business Review Although priority on cash conservation meant a slowdown in AirAsia WiFi development in 2020, we were still able to expand the service to three more aircraft in AirAsia Thailand. In addition, in October we launched our first Unlimited Internet plan, which has proven to be popular. Going forward, we have developed a lower- cost hardware and software solution to be deployed fleet-wide in 2021. The software has been upgraded to be more data and analytics-driven in order to further personalise the guest experience. The platform has also been enhanced with more digital advertising capabilities to offer a wholesome experience for our passengers. ASIA DIGITAL ENGINEERING (ADE) ADE is a wholly-owned subsidiary set up to provide Maintenance, Repair and Overhaul (MRO) services for airlines in the region. As reflected in its name, ADE’s operations are digital-based, lending it an edge in the delivery of cost-effective data and technology-driven services including line maintenance, workshop repairs, engineering support, and the provision of components as well as warehousing. The company has the added strength of an experienced team that has operated and maintained AirAsia’s fleet for 19 years. ADE became operational on 9 September 2020 when it obtained approval from the Civil Aviation Authority of Malaysia (CAAM). While the objective, initially, was to provide centralised technical support for our fleet of aircraft, in the space of three months ADE made very encouraging progress and even secured contracts from three external airlines. In 2021, ADE seeks to obtain the relevant civil aviation authority approvals in Thailand, Indonesia, the Philippines and India; as well as the European Union Aviation Safety Agency (EASA) approval to be able to expand its customer base. It also has plans to build three more workshops for enhanced capacity to serve all AOCs within the Group. 80 AIRASIA GROUP BERHAD

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