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SUSTAINABILITY STATEMENT
Following the completion of the internal
reorganisation of AirAsia Berhad (AAB) and
the transfer of its listing status to AirAsia
Group Berhad (AAGB) on 16 April 2018,
AAB is now a wholly-owned subsidiary
of AAGB. This Sustainability Statement
represents AAB’s initiatives and materiality
matrix for the financial year ended 31
December 2017 (the Financial Year), which
will be adopted by AAGB in the next
financial year.
As part of the One AirAsia initiative, we are
committed to reducing costs further, while
improving efficiencies across the board.
Apart from the impact on costs and greater
revenue generation, this initiative also puts
in place the long-term sustainability of the
business as well as ensures an effective
succession planning in the long run.
AAB was founded to enable everyone
to fly. In the 16 years that we have been
building skybridges across Asia, we have
carried more than 466.7 million guests
across the Group
1
. In Malaysia, we are the
leading airline, dominating almost half the
domestic and international markets. And
we are still growing. While other airlines in
the region were reducing capacity in 2017,
we saw the delivery of seven aircraft as we
expanded our route network.
Our ongoing success hinges on two
key factors: staying true to our low-
cost business model; and truly valuing
people. The former has provided us the
financial strength to grow even in less
than optimum economic conditions, while
the latter underlines our commitment to
operating safely, responsibly and with
integrity, and has gained us the trust of
our stakeholders. Our One AirAsia drive
is adding to our efforts, providing greater
career opportunities to our own people, ie
our Allstars.
Both keeping our costs low and
strengthening our relationships are
equally important to our sustainability,
and will continue to underpin all our
actions and decisions.
While we disclose our financial
performance in the rest of this annual
report, we describe our actions to create
stakeholder value in the following pages
of this Sustainability Statement. By
creating stakeholder value, we mean
investing into areas that are important
to our guests, our Allstars, our investors,
business partners, the government and
the public.
We have always had a good idea as to
what is important to our guests – from
feedback obtained through various
communication channels, as well as
from face-to-face interactions. In 2016,
we obtained similar insight for other
stakeholders by conducting our first
materiality assessment. Through a
structured process of workshops, surveys
and interviews, we were able to determine
those issues that are important both to
AAB as well as to all our stakeholders,
and to prioritise these according to their
impact.
AIRASIA’S MATERIALITY MATRIX
Materiality refers to issues that reflect an organisations’ most significant economic, environmental and social impacts (X-axis), and the
concern of stakehoolders (Y-axis). Quadrants 1, 2 and 3 are prioritised issues, which we report on.
Legend: Priority issues
Economic
Environmental
Social
Concern to Stakeholders
Impact on the Company
Responsible Marketing
and Communication
Effluents andWaste
Service Efficiency
Competitive Behaviour
Fleet Management
Transparency
Human Rights
1
3
4
2
5
7
6
8
9
Health & Safety
Stakeholder Engagement
Training and Education
Labour Practice/
Management Relations
Environmental Management
GHG Emissions
Talent Attraction
& Retention
Energy Consumption & Fuel Management
Risk & Crisis Management
Operational
Efficiency
1
By “the Group” we refer to AirAsia Malaysia, AirAsia Indonesia, AirAsia Philippines, AirAsia Thailand, AirAsia India, AirAsia Japan, AirAsia X Malaysia, AirAsia X Thailand and
AirAsia X Indonesia. Although the Group’s total fleet size stood at 205, this included three aircraft on lease to third parties, six that were grounded for redeployment to other
affiliates in 1Q18 and eight operated by AirAsia X Indonesia.
[ ]
AirAsia Group Berhad
SUSTAINABILITY
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