Corporate Governance
Delivering positive impact across our business starts with good corporate governance and establishing strong policies and standards. In 2023, we continue to strengthen our sustainability attainments.
Developing an
e-learning module on the Anti-Bribery and Anti-Corruption Policy for all new and existing Allstars
Digitalised the reporting of Gift Declaration process
Incorporated ESG risks into the ERM Policy by introducing ESG risk categories in the Risk Guidelines
Incorporated climate-related extreme weather events into our Business Continuity Plan
To advance accountability and to deliver long-term value, each department/entity in the Sustainability Working Group is responsible for their sustainability deliverables.
As climate-related risks gain prominence due to the increasing severity and regularity of climate events, Capital A has included business continuity plans for extreme weather conditions for heat waves, floods and wildfires.
Heatwaves
Heatwaves could impact airside operations. Measures to mitigate it include:
- Adjusting working hours
- Providing additional cooling measures
- Ensuring adequate water supplies for ground staff
Floods
With increased precipitation and rising sea levels, floods are becoming a more significant threat to our operations. Measures include:
- moving equipment to higher ground
- developing emergency communication plans
- ensuring safe evacuation routes for Allstars.
Wildfires
In wildfire-prone areas, measures to mitigate such disasters include:
- creating defensible spaces around buildings
- ensuring adequate water supply
- developing evacuation plans for staff and customers
Guest Experience
As we expand our portfolio from airlines to digital ventures, we still remain customer-obsessed and seek to deepen our understanding of customers' needs to create meaningful experiences at every point of their journey with us.
For AirAsia, our load factor increased by 4% from the previous year while our on-time performance (OTP) maintained at 77%.
Load Factor
88%
+4% compared to 2022
OTP
77%
Maintained the same as 2022
The satisfaction of our customers drives what we do. With the pandemic bringing many challenges to our business, our customer satisfaction score, Net Promoter Score (NPS), for AirAsia is expected to remain below pre-pandemic levels for another year as we navigate the challenges of rebuilding our network in the face of industry-wide shortages.
82%
Customer Satisfaction Score for the AskBo chatbot
52%
Net Promoter Score
(2022: 36%)
To create a seamless journey with AirAsia, we put in place various solutions to enable guests to carry out travel requirements independently. One of many positive results has been reducing or entirely eliminating their queueing time at check-in counters.
31.9 million guests
performed self check-in 2023
1.2 million guests
enrolled on FACES, our biometric facial recognition technology, in 2023 for a contactless travel experience
Technology, Innovation & Information Security
From the start, Capital A has been technology driven, leveraging technology to reduce costs and pass on the savings to guests. From an early adopter of online flight bookings to the present day, we have developed a robust digital infrastructure and enhanced our artificial intelligence. Continuing our digitisation and digitalisation journey, several new innovations were introduced in 2023.
6.5 million
Sheets of A4 paper estimated to be eliminated per year
2.9 million
Sheets of A4 paper avoided through the auto-upload of passenger manifests
99.9%
Of data storage system moved onto Google Cloud
Going hand-in-hand with our technology drive is the need to strengthen our cybersecurity governance. Among the priorities of the Group Information Security Department are:
- Obtained ISO 27001:2013 - Information Security Management
- Certified to Payment Card Industry Data Security Standards (PCI DSS)
- Developed annual information security awareness programme for Allstars
- Organised its Cybersecurity framework in accordance with the US National Institute of Standards and Technology (NIST)
- Formalised pillars of Information Security
InfoSec Capabilities Highlights
Governance, Risk Management & Compliance
- Payment Card Industry Data Security Standard (PCI DSS) & ISO 27001 Certification
- Policies and Procedures
- Security Awareness Programme
- Third-Party Risk Management
Information Security Operations (SecOps)
- Security Monitoring
- Incidence Response
- Threat Intelligence
- Infrastructure Management
- Support & Reporting
InfoSec
Capabilities
Highlights
Testing
- Vulnerability Assessment
- Penetration Testing
- Technical Spec Review
- Bug Bounty
- Security Advisory
Data Security & Privacy Protection
- Data Governance
- Awareness Education
- Data Disclosure Control
- Fulfilment of Data Subject's Rights
- Sensitive Data Monitoring
We take precautionary measures to enhance Allstars' awareness and knowledge of cyber threats to cultivate cyber risk awareness and a culture of compliance with security measures and protocols.
Information Security Training
82% Allstars
completed information security awareness training
No breaches
of financial, customer or employee data
Sustainable Supply Chain
We strive to encourage sound ESG practices across our supplier chain. Our preference is to source locally if possible, with consideration of user specifications, quality and compliance requirements, supply chain dynamics and other commercial issues in our vendor selection process.
In 2023, we expanded our disclosure by covering four key entities that together account for the majority of our Group procurement: Group Procurement, ADE, Santan and GTR. This is in line with our efforts to provide a more complete coverage of the procurement practices and performance of the entire Capital A ecosystem.
Group Procurement
- General items, apparel and merchandise
- Technology & digital goods and solutions
- Aircraft fuel, construction, rental and renovation
- Professional and facility services
- Inflight food and beverages
ADE
- Aircraft and aircraft-related parts and equipment
GTR
- Ground handling equipment (GSE)
- Material handling equipment (MHE)
- Maintenance of GSE and MHE
- Aircraft interior cleaning materials and chemicals
- Maintenance material handling system
Santan Inflight & Restaurant
- Raw materials
- Food
- Beverages
Our expectation is that our suppliers, vendors, contractors, consultants, agents and other providers of products and services who are doing business with us to comply to the following policies:
Supplier Code of Conduct
Environmental Policy
With a network of 22,656 suppliers, we do our best to support economic development of the countries we operate in by procuring goods and services from local suppliers where possible. In 2023, 42% of goods and services are sourced locally in Malaysia.
Human Rights
Anti-Harassment
We believe unequivocally in the rights inherent to all human beings irrespective of race, sex, nationality, religion or any other status. Our approach to human rights is aligned with international labour laws and is highlighted in our Code of Conduct and Ethics.
To provide greater clarity on acceptable and unacceptable behaviours in and outside the workplace, we developed an online learning module specifically on Anti-Harassment in 2022, which all new recruits are required to complete.
2,965
Allstars completed the anti-harassment module.
Anti-Human Trafficking
As our airlines begin to go full scale with operations, our exposure to human trafficking risk increases. In 2023, we revived awareness of our anti-trafficking e-learning module, #KnowtheSigns, through a reminder campaign in conjunction with World Day Against Trafficking in Persons.
27,504
Allstars completed #KnowTheSigns
e-modules since 2017
>4,170
Training hours on anti-human trafficking
