(ii) Operational Eco-efficiency Fuel efficiency has long underpinned AirAsia’s drive towards cost minimisation. To complement our fleet strategy, AirAsia maintains an industry-leading fuel efficiency programme that sees the airline emit the lowest carbon emissions per passenger in Asia. Based on publicly available data, where disclosed, AirAsia also features among operators with the lowest carbon emissions per available seat kilometre (ASK) in the world. Despite prioritising the use of more efficient A320/A321neo aircraft, AirAsia’s emissions intensity increased in 2021 because we were largely restricted to operating domestic flights, with only a limited number of international cargo flights. Domestic flights generally have shorter stage lengths which equate to higher fuel burn rates as the cruise segments of the flights are shorter than in longer stage lengths. Typically, aircraft burn more fuel during take off and when ascending than when in cruise or descend mode. On shorter flight legs, the aircraft spends a higher percentage of total flight time in this phase, resulting in higher block burn. Nevertheless, we expect our emissions intensity to revert to pre-Covid levels as the pandemic becomes endemic and more countries in Asean begin easing international travel restrictions. The chart below summarises AirAsia's carbon emissions trend from 2017 (pre-Covid) to 2021. AirAsia’s fuel efficiency improvements are driven by the Flight Operations department which is tasked with initiating innovative fuel saving projects and tracking their outcomes using an extensive fuel monitoring system. In 2021, the department managed over 27 efficiency projects to reduce fuel consumption and carbon emissions. Below are the highlights: Initiative Description Result/Total CO2 avoided in 2021 SafetyLine OptiClimb Software that reduces fuel consumption during climb, which is the most fuel-intensive phase of a flight. OptiClimb leverages digital data to accurately determine and analyse an aircraft’s aerodynamic characteristics. Group compliance rate rose to 63% from 58% in 2020. CO2 avoided = 4,892 tonnes Reduced Flaps Landing Procedure that uses a reduced flap configuration during landing to cut aerodynamic drag and fuel burn. Group compliance rate dropped slightly from 91% in 2020 to 88% due to operational variances. CO2 avoided = 1,069 tonnes One Engine Taxi on Arrival Procedure to operate one engine (instead of two) during aircraft taxi-in to the arrival gate. Group compliance rate dropped slightly from 86% in 2020 to 83% due to operational variances. CO2 avoided = 1,020 tonnes Idle Fuel Flow Factor Updates to the Flight Management System that enable optimisation of the flight’s descent and approach. Implemented on all aircraft. CO2 avoided = 557 tonnes 0 1 2 3 4 5 million 2021 2020 2019 2018 2017 391,325 1,260,477 4,431,864 4,038,954 Carbon Emissions (tCO2e) 4,748,745 50 55 60 65 70 75 2021 68.1 2020 65.7 2019 63.4 2018 66.6 2017 69.0 Carbon Intensity (gCO2/ASK) AirAsia Carbon Emissions (tCO2e) AirAsia Carbon Intensity (gCO2 /ASK) S U S T A I N A B I L I T Y S T A T E M E N T A N N U A L R E P O R T 2 0 2 1 1 2 3
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