Annual Report 2021

Initiative Description Result/Total CO2 avoided in 2021 Idle Reverse Landing Procedure that uses idle thrust (instead of full reverse engine thrust) upon landing to reduce noise and fuel burn. Group compliance rate for 2021 was 92%. CO2 avoided = 568 tonnes Required Navigation PerformanceAuthorisation Required (RNP-AR) approach Procedure that uses an aircraft’s navigation functions instead of ground-based equipment for the shortest landing approach. In 2021, 14 out of 16 airports in Malaysia were approved to implement RNP-AR. A total of 37.7% of AirAsia’s flights in Malaysia landed using this procedure. AirAsia Indonesia and AirAsia Philippines are still awaiting r e g u l a t o r y a p p r o v a l f o r RNP - A R implementation. CO2 avoided = 517 tonnes In total, AirAsia’s operational eco-efficiency measures avoided the emission of 11,175 tonnes of CO2 for the year. The return on investment of these measures is immediate, as evident from the cost savings achieved (see table). Using the US EPA’s Greenhouse Gas Equivalencies Calculation of 0.06 tonnes of CO2 per urban tree planted, the environmental benefit is comparable to the impact of planting 186,250 trees. New investments in 2022 will see AirAsia add at least six new fuel-saving initiatives including performance monitoring analysis to identify aircraft that require maintenance tasks, and publishing enhanced fuel efficiency training material to improve overall compliance with these measures. Estimated annual CO2 savings (tonnes) Total annual investment required (RM) Total anticipated annual cost savings (RM) 11,175 2,510,900 11,680,628 In addition, AirAsia is engaging with civil aviation authorities on joint initiatives to support ICAO’s State Action Plan (SAP) to mitigate climate change. Launched in 2010, the initiative calls for ICAO member states to identify and track emissions reduction measures on a tri-annual basis. In 2021, AirAsia participated in five bilateral discussions with the Civil Aviation Authority of Malaysia (CAAM) to update Malaysia’s SAP by Q1 2022. Among measures proposed for inclusion is enhanced air navigation. According to industry estimates, effective air traffic management has the potential to save up to 15% of fuel consumed by airlines. Pending the maturity of low-carbon technologies such as sustainable aviation fuel and zero-emission aircraft, improvements in air navigation will form an important aspect of our engagement with the regulators. Concurrently, similar engagements have or are taking place between our airlines in Indonesia and the Philippines with their respective state regulators. Indonesia’s Directorate General of Civil Aviation (DGCA) called for a first engagement in April 2021 requesting AirAsia Indonesia to provide input on initiatives to be included in the republic’s SAP. The plan was published in December 2021 with emphasis on emissions reduction through measures such as improving airspace design and prioritising sustainable airport development. Philippines commenced its SAP review process in December 2021 and, at the time of writing, engagements are ongoing between the Philippines’ civil aviation authority and AirAsia Philippines. 11,175 tonnes of CO2 saved 186,250 urban trees planted equivalent to 1 2 4 C A P I T A L A B E R H A D Environmental (cont’d.)

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