For the year as a whole, however, AirAsia Philippines’ total flight capacity decreased by 57% compared to 2020. To compensate for the reduction in scheduled domestic travel, the airline continued to focus on chartered flights and cargo service. It flew a total of 619 chartered flights, exploring new markets such as India, Sri Lanka, Myanmar and Palau. At the same time, it on-boarded new cargo agents to optimise cargo opportunities. While enhancing its revenue, our associate also maintained the slew of cost-saving initiatives that had been implemented in 2020 to temper losses and preserve cash. Another key development during the year was the acceleration of AirAsia Philippines’ digital transformation. It has made considerable progress in digitising multiple customer touchpoints while integrating several services on the airasia Super App. In addition, it has increased its digital payment channels for greater convenience of guests and to supplement the range of contactless services being offered. With the country’s top mobile wallets Paymaya and GCash on board, e-wallet transactions have more than quadrupled since 2019 to make up 13% of total transactions. It is too early to predict what the year 2022 will bring. There is a possibility of another surge in the pandemic resulting from new variants such as Omicron. However, the team believes that all relevant stakeholders will be much better prepared to manage the situation and mitigate related risks. While continuing to place the safety of guests and Allstars as topmost priority, AirAsia Philippines will be looking to expand its domestic presence even as it explores new destinations further afield in markets such as the United States, Australia and the Middle East. As it restores and expands its network, AirAsia Philippines will also strengthen its digital presence via the airasia Super App to differentiate itself from its competitors and lend it a winning edge. Key Developments in FY2021 Acceleration of AirAsia Philippines’ digital transformation Digitised multiple customer touchpoints Integrated services on airasia Super App Increased digital payment channels Yet, ever resourceful, GTR was able to pull through the year by biting the bullet and doing what had to be done. This included re-calibrating its costs while ensuring the ability to meet customers’ demands. Most painfully, the team had to rationalise its headcount as well as institute no-pay leave and salary reductions. On a positive note, this was just a temporary measure. As domestic travel recovered significantly in November and December 2021, many of the Allstars who were let go earlier were recalled to work. Meanwhile, GTR also seized opportunities that arose during the pandemic. Key among these has been cargo handling. Along with booming e-commerce, the volume of goods crossing international borders is phenomenal, and ever-increasing. Teleport, therefore, is thriving, as are other non-Capital A cargo operators. Enhancing its cargo handling capacity, GTR has been able to serve Teleport and fuel its rapid growth while securing new cargo airline business from third parties. By the middle of 2021, GTR’s cargo handling tonnage was almost back to pre-pandemic levels. Building on the momentum, GTR is now developing new cargo terminals in the major logistics hubs of Penang and Kota Kinabalu. These new-build facilities, which are expected to be completed and operational within the next 15 months, will offer a very competitive proposition to the market given that they will be equipped with the latest, most efficient technology to support supply chain demand. Another key opportunity has been to contribute towards the transport of Covid-19 vaccines. Investing in state-of-the-art cold chain facilities, the team worked closely with relevant stakeholders to ensure the integrity of vaccine shipments into the country. Going forward, GTR is strengthening its vaccinehandling capabilities by upgrading its systems and processes, guided by the IATA CEIV Pharmaceuticals certification. Upon receiving the certification in the first quarter of 2022, GTR will be the first ground handler in Malaysia to be IATA-certified to handle temperature-controlled and time-sensitive biological products. Aviation G r o u n d Te a m R e d Flight disruptions have a domino effect along the entire aviation value chain. Just as our airlines faced the brunt of a second year of the pandemic, so did our technology-based ground handling arm, Ground Team Red (GTR). Not only did it have to contend with a decrease in number of flights, it has also had to manage various uncertainties in its operating environment. 0 8 0 C A P I T A L A B E R H A D Business Review (cont’d.)
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