Returning to seize the opportunity to soar as a “Truly Leading Low-Fare Airline”, offering the highest level of service guaranteed by awards for on-time performance and safety, while also developing new businesses to enhance sustainability management in all dimensions. RE-EMERGING
Always forging forward, we’re back with new international routes, including our first to Japan (Fukuoka) and Bangladesh (Dhaka), as well as many more that will keep Thai AirAsia top-of-mind among travellers. OVERCOMING
Phuket Bangkok Maldives Ubon rachatani Chiang Mai Fukuoka Nepal From a quality airline to an endless basis for new business opportunities, airasia Super App has created an ecosystem that responds to all lifestyles with various services; from ticket booking with AirAsia and its over 700 partners, to reservations at hotels, food and parcel delivery and even taxi and legal ride services. EXCEEDING
Our aspiration is to be one of the world's greenest airlines that go beyond addressing the economical, environmental and social impacts. Wi th our strong commi tment towards Operational Eco-Efficiency and Net Zero Carbon Emissions, we believe that we can deliver a sustainable future for aviation in the long run. SUSTAINABLE
CONTENT Sustainable Business Development 2022 Sustainability Highlights COVID-19 Response Stakeholder engagement 2022 Materiality issues Sustainability Goals Sustainable Strategy SUSTAINABLE BUSINESS DEVELOPMENT 67-168 OVERVIEW Highlighted Accolades Key Financial And Operating Data Financial Highlights Message from Executive Chairman Message from Chief Executive Ocer Board Of Directors And Management Team Public Relations Activities 2022 Investor Relations Activities 2022 Key Milestones 7-23 24-65 BUSINESS OVERVIEW AND PERFORMANCE Company Policy and Business Overview Nature of Business Industry Outlook and Competition Securities and Stakeholders Risk Management Management Discussions and Analysis General and Other Information 170-242 CORPORATE GOVERNANCE Corporate Governance Policy Governance Structure Reports and Results of Major Performance on the Corporate Governance Internal Control and Related Party Transactions FINANCIAL INFORMATION Report of Directors Relating to Responsibility for Financial Statements Financial Statements GRI Content Index 245-311 10 MESSAGE FROM THE CHAIRMAN 6 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Skytrax 2022 World Airline Awards World’s Best Low-Cost Airline for 13th Consecutive Year World Travel Awards 2022 • Asia’s Leading Low-Cost Airline 2022 • Asia’s Leading Low-Cost Airline Cabin Crew 2022 • World’s Leading Low Cost Airline for 10th Year Running • World’s Leading Low Cost Airline Cabin Crew for 6th Year Running SET THSI 2022 Asia Aviation Public Company Limited (AAV) has been selected to list on the Thailand Sustainability Investment (THSI) in the Services Sector created by the SET for 4th consecutive year in 2022 Brandage Magazine 2022 Thailand's Most Admired Brand Category: Low Cost Airline Friendly Design Awards 2022 “Friendly Design Awards: An Outstanding Organisation Promoting Equality for All” from The 6th Thailand Friendly Design Expo 2022 Cirium 2022 • Most On-Time Airline in Asia Pacific • Top 3 Most On-Time Low-Cost Airline in the world OAG 2022 • Top 4 Most On-Time Airlines In the World • Highest Ranked Airline in Thailand for OTP APEC Communication Partners Trophy Thai AirAsia awarded by Thai Ministry of Foreign Aairs as an ocial airlines partner for APEC 2022 communications HIGHLIGHTED ACCOLADES 7 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
KEY FINANCIAL ANDOPERATINGDATA BREAKDOWN OF COSTS AND EXPENSES % of Cost per Available Seat Kilometre (CASK) (1) Since 2020, AAV has adopted TFRS 16 (Leases) which involves the recognition of aircraft and engine lease liabilities and amortisation of right-of-use assets and finance costs, rather than recognising rental expenses. (2) Only includes finance cost from TFRS 16 Remark: 2019 represents the year before the COVID-19 pandemic Aircraft 2019 2022 Average Stage Length 2019 2022 (Kilometres Per Flight) (Aircraft) Passengers Carried 2019 2022 Utilisation 2019 2022 (Flight Hours Per Day Per Aircraft) (Million) Load Factor 2019 2022 Ancillary 2019 2022 (% of Revenues from Sales & Services) On-Time Performance 2019 2022 Allstars 2019 2022 (Persons) (Percent) (Percent) Fuel 2019 2022 Salaries & Wages 2019 2022 Aircraft & Engine Rental(1) 2019 2022 Ramp & Airport Operations 2019 2022 Repair & Maintenance 2019 2022 SG & A 2019 2022 Depreciation & Amortisation(1) 2019 2022 Finance Costs (1), (2) 2019 2022 63 54 1,033 864 12.3 9.6 13.0 22.1 9.1 18.9 18.7 5,974 4,478 86 34 31 16 11 13 0 17 8 9 15 8 6 4 23 0 7 85 84 92 7.9 2.0 9.9 Domestic International Aircraft 2019 022 Average Stag Length 2019 022 (Kilometres Per Flight) (Aircraft) Passengers Carried 2019 022 Utilisation 2019 022 (Flight Hou s Per Day Pe Aircraft) (Million) Load Factor 2019 022 Ancillary 2019 022 (% of Revenues from Sales & S rvices) On-Time Pe formance 2019 022 Allstars 2019 022 (Persons) (Percent) (Percent) Fuel 2019 022 Salaries & Wages 2019 022 Aircraft & E gine Rental(1) 2019 022 Ramp & Airport Operations 2019 022 Repair & Mainte ance 2019 022 SG & A 2019 022 Deprec ation & Amortisation(1) 2019 022 Fi ance Costs (1 , (2) 2019 022 63 54 1,033 864 12.3 9.6 13.0 22.1 9.1 18.9 18.7 5,974 4,478 86 34 31 16 11 13 0 17 8 9 15 8 6 4 23 0 7 85 84 92 7.9 2.0 9.9 Domestic I ternational 8 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
FINANCIAL HIGHLIGHTS STOCK INFORMATION Asia Aviation Public Company Limited 3.06 As of December 30, 2022 (Baht) 2.20-3.30 52 Weeks Price (Baht) For the year ended 31 December 2020(1) 2021 2022 Statement of Comprehensive Income Revenues from sales and services 13,634 3,828 17,553 Profit (loss) from operating activities (7,551) (11,851) (8,476) Profit (loss) attributable to owners of the Company (4,764) (6,647) (8,030) Statement of Financial Position Total assets 67,978 71,208 64,686 Total liabilities 50,618 54,379 56,731 Equity attributable to owners of the Company 14,266 20,201 7,954 Total equity 17,360 16,829 7,954 Statement of Cash Flows Net cash flows from (used in) operating activities (898) (4,347) 564 Net cash fkows from (used in) investing activities 12,064 1,284 (590) Net cash flows from (used in) financing activities (14,031) 7,314 (4,531) Net increase (decrease) in cash and cash equivalents (2,865) 4,250 (4,556) Key Financial Ratios Net profit (loss) margin (%)(2) (34.9) (173.6) (45.7) Return on assets (%)(3) (7.3) (9.6) (11.8) Return on equity (%)(4) (27.9) (38.6) (64.8) Basic and diluted earnings (loss) per share (Baht) (0.9823) (1.2985) (0.6921) Remark (1) Reclassifications of the comprehensive income statements (2) Net profit margin = Profit attributable to owners of the Company / Revenues from sales and services (3) Return on assets = Profit attributable to owners of the Company / Total assets (Average) (4) Return on equity = Profit attributable to owners of the Company / Equity attributable to owners of the Company (Average) (Unit: Baht million) Baht Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 28.34 Average Trading Volume (Million Shares) 4.39-157.22 52 Weeks Trading Volume (Million Shares) 9 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
It is well known that not just anyone can be successful in the aviation business. This is an industry that requires efficient management for the assured safety and comfort of passengers on a daily basis. Behind the day to day service on AirAsia flights are staff who have received extensive training and that regularly review how to comply with flight requirements, maintain their composure and handle different situations. All of this is in the interest of providing passengers with happy and comfortable flights. The compliment that always puts a smile on our faces is “if you want to fly on time, fly Thai AirAsia.” We hear this often and it has become so common as to be a characteristic of Thai AirAsia held by almost everyone. Our on-time performance is no coincidence however and is actually the result of dedicated work. We maintain an On-Time Performance Committee populated by department heads, which meets once a month with the CEO and holds other frequent meetings to review recent lessons and revise operations. We plan in advance using databases on past weather conditions, proper block times and holidays that may impact operations. All of this data allows us to handle issues, develop and improve our on-time performance and has made this capability accepted among passengers and guaranteed by international rankings. The compliments we receive motivate our board, top management and staff to continue working to their utmost with the goal of perpetual service development. I thank all of our passengers for their encouragement and compliments and thank our staff for continuing to believe in the Pause & Play policy. Thank you for staying strong, training yourselves and staying ready to return to service after the COVID-19 pandemic. We have proven our capability. I also thank our shareholders, debtors and stakeholders for their continued trust in our top management and personnel. I am confident that we are leaving this turbulence behind for clear skies and that our strong vision will return us all to our desired course of strong and sustainable growth. MESSAGE FROM THE CHAIRMAN Vichate Tantiwanich Chairman of the Board The compliment that always puts a smile on our faces is “if you want to fly on time, fly Thai AirAsia.” 10 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Tassapon Bijleveld Executive Chairman Thai AirAsia has entered into its 20th year of operation. From the first day we unveiled ourselves as a low-fare airline, we have had to struggle and persevere, to change and adapt to challenging circumstances. These experiences proved beneficial however, preparing us for the COVID-19 pandemic, the most difficult and extended challenge we ever had to tackle, and allowed us to return as a strong leader in our industry. The past two years were the first-time Thailand ever had an “Airlines Association of Thailand (AAT)”. The collective of seven Thai-based carriers was led by the chief executive officers and top management of each member and was able to form and drive policies that helped the entire Thai aviation business overcome crises and progress forward, affirming the sector as a crucial part of the overall economy. Successes of the association include travel and tourism stimulation projects with the government, such as the nationwide discounts program and the We Travel Together campaign, which spurred no less than Baht 2 billion in circulation. The association was also able to reduce excise tax on jet fuel from Baht 4.762 to Baht 0.20 per litre (10 Apri l 2020-30 June 2023) and garner discounts and fee waivers at Airports of Thailand Plc. and Department of Airport airports. Experience from these endeavours taught us that, on top of a strong foundation, capable team and good strategies, survivors must also be ready to bring down walls, adapt and collaborate. In the current business atmosphere, Thai AirAsia acknowledges it cannot operate independently and must have strong partners in both the public and private sectors. We must depend on one another, support sustainable growth, have a shared vision and help one another both conceptually and practically. Learning these lessons has allowed Thai AirAsia to grow alongside its friends and partners. While the crisis has yet to completely pass and hard work remains, I believe in all of our abilities and determination. Most importantly, we have management, personnel, partners and stakeholders all ready to fight on as one. We will recover as planned and Thai AirAsia will remain a company attractive to investment, that can be trusted, and that has personnel dedicated to creating value and progress. The skies are once again open in 2023 and opportunity is for the always ready. We are an “Ever-ready Leader” with a clear policy from our board of directors and top management. Our entire 53 aircraft fleet will take off this year, so prepare for excitement in the skies Thai AirAsia style. MESSAGE FROM THE EXECUTIVE CHAIRMAN “In the current business atmosphere, Thai AirAsia acknowledges it cannot operate independently and must have strong partners in both the public and private sectors.” 11 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Santisuk Klongchaiya Chief Executive Officer Starting in 2022, we began receiving positive signals of recovery in our business following three long years of the COVID-19 pandemic. Finally, in the fourth quarter of the year, we were able to state with confidence that Thai AirAsia was back, with our first positive operational result in 11 quarters. We have since been able to retain the largest market share in the country using the right strategy, which included maintaining our fleet and readying our personnel to mobilise immediately when they had the chance. By working closely with the state and Tourism Authority of Thailand, we were also able to help the entire tourism market speed up its recovery. Our help allowed the Thai market to match the recovery pace of ASEAN, India and South Asia, which gradually lifted their travel restrictions over the same period. Excluding routes to China, we were able to resume two thirds of our international routes, bolstering our revenue. We even saw record growth in our ancillary income per passenger. On top of the good news of the aviation sector’s recovery, Thai AirAsia was proud to have its on-time performance recognised by two institutions. We were ranked fourth for on-time performance globally by OAG and third among low-cost airlines worldwide by Cirium. Both of these achievements are like Olympic golds for efficient management of operations. Moreover, we received a 7/7 rating for safety from airlineratings.com and Best Low-Cost Airline in the World for a thirteenth consecutive year from Skytrax, affirming that regardless of the circumstances, we continue to maintain the highest standards. In 2023, we will complete “repairs” and begin “rebuilding” growth. We received strong signals in the first quarter after China reopened its borders earlier than expected and allowed us to begin resuming routes that would result in improving revenue and profit. We plan to seize even more opportunities in new high-potential markets, such as Indonesia, the Philippines, Nepal and Sri Lanka, thus aiming to double our total passengers served in 2022. This plan includes bringing our entire fleet back into operation and maximising aircraft utilisation. I am confident that 2023 will be a strong year for us. I thank all of our employees, top management, investors and stakeholders for your support. Thai AirAsia is back and stronger than ever. We are a leader and we will grow in the short and long terms with sustainability. MESSAGE FROM CHIEF EXECUTIVE OFFICER “Finally, in the fourth quarter of the year, we were able to state with confidence that Thai AirAsia was back, with our first positive operational result in 11 quarters.” 12 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
BOARD OF DIRECTORS Asia Aviation Plc. and Thai AirAsia Co., Ltd. (GRI 2-9, 2-11, 2-12) Mr. Vichate Tantiwanich Chairman of the Board/ Chairman of the Audit Committee/ Independent Director Mr. Veerayooth Bodharamik Director/ Audit Committee/ Independent Director Mr. Dinesh Nambiar Director/ Audit Committee/ Independent Director Mr. Tassapon Bijleveld Director Mr. Phairat Pornpathananangoon Director Mr. Santisuk Klongchaiya Director 13 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
BOARD OF DIRECTORS Asia Aviation Plc. and Thai AirAsia Co., Ltd. Dato’ Mohamed Khadar Bin Merican Director Mrs. Pattra Boosarawongse Director Mr. Rozman Bin Omar Director Mr. Nuttawut Phowborom Director Mr. Yuthapong Ma Director Mr. Sirot Setabandhu Director/ Independent Director 14 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
MANAGEMENT TEAM Asia Aviation Plc. Mr. Tassapon Bijleveld Executive Chairman Mr. Santisuk Klongchaiya Chief Executive Officer Mr. Phairat Pornpathananangoon Chief Financial Officer 15 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Mr. Tassapon Bijleveld Executive Chairman Mr. Santisuk Klongchaiya Chief Executive Officer Mr. Phairat Pornpathananangoon Chief Financial Officer Flt.Lt. Banyat Hansakul Head of Engineering Miss Witchunee Kuntapeng Head of Guest Service Mr. Pipat Khunprakan Head of Innovation Commercial and Technology MANAGEMENT TEAM Thai AirAsia Co., Ltd. 16 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Miss On-anong Methapipatkul Head of Inflight Services Mr. Chatupong Hongwiset Head of Ramp and Ground Service Equipment Sqn.Ldr. Damrong Phaspipatkul Head of Flight Operations Mr. Krid Pattanasan Head of Government Relations Mr. Phol Poompuang Head of Corporate Safety Miss Topaz Subunruk Head of Business Development Mr. Chalermrit Saisakulsri Head of Operational Quality Assurance MANAGEMENT TEAM Thai AirAsia Co., Ltd. 17 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Back with New Features “SUPER+” Year-Round Fly 130 Routes airasia food Delivery Extends to Nonthaburi AirAsia Takes the Lead Launches Flights to China and Hong Kong Santan Ready for In-Flight Service Menus of Delicious Meal! Read more Read more Read more Read more Read more Read more Read more AirAsia Flies Direct for the First Time! “Don Mueang-Fukuoka” New Experiences on Kyushu airasia Super App Asian’s Top Application Lifestyle and Travel Services for Everyone, Everyday Take off new aircraft livery “Amazing New Chapters” To promote new side of Thai travel PUBLIC RELATIONS ACTIVITIES 2022 18 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
Further into South Asia Direct Flights to Lucknow and Dhaka Find New Travel Experiences AirAsia Supports “Friendly Design” with Hiring of Disabled Persons Provides Training for Service to All People airasia Hotel Joins Hands with 50 Hotels Across ASEAN Best Stay Rates! airasia TransportBus, Train and Ferry Bookings on a Single Platform New Commercial “Missing Moments” AirAsia Style Service and Care New Service airasia Ride Legal and Trustworthy Rides across Bangkok The Wait is Over “Don Mueang-Taipei” Chic Sights, Shopping and Street Food Read more Read more Read more Read more Read more Read more Read more PUBLIC RELATIONS ACTIVITIES 2022 19 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
INVESTOR RELATIONS ACTIVITIES The Investor Relations Unit is responsible for strategic communication of the Company’s operational and financial results with all groups of investors. The Unit adheres to transparency, equity, and timeliness. The Company’s management acknowledge the importance of investor relations responsibilities and are supportive in attending investor meetings on a regular basis. In 2022, the COVID-19 situation improved; however, there was still a necessity for social distancing. As a result, most of the meetings conducted in 2022 remained to be held virtually. 2 participations in the SET activities namely Opportunity Day and THAILAND FOCUS Shareholding from institutional investors 14% Shareholding from retail investors 24% ACTIVITIES HIGHLIGHTS(1) Distribution of shares among minor shareholders (free float) Total 38% (1) As defined by the Stock Exchange of Thailand 4 analyst meetings after the results announcement via virtual conference Watch Video 4 meetings with international institutional investors 11 meetings with domestic institutional investors 15 meetings with institutional investors 20 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
THE Q2/2022 RESULTS ANNOUNCEMENT 11 August 2022 THE Q2/2022 RESULTS BRIEFING Virtual Conference 15 August 2022 THAILAND FOCUS 2022 BY THE SET Grand Hyatt Erawan, Bangkok 25 August 2022 NOMURA THAILAND CORPORATE DAY 2022 Virtual Conference 8 September 2022 AAV LOCAL FUND ROADSHOW BY DAOL Virtual Conference 20 September 2022 CGS-CIMB - TOURISM PLAYS IN ASEAN Virtual Conference 7 December 2022 THE Q3/2022 RESULTS ANNOUNCEMENT 14 November 2022 THE Q3/2022 RESULTS BRIEFING Virtual Conference 16 November 2022 OPPORTUNITY DAY Q3/2022 Virtual Conference 21 November 2022 WWW.AAVPLC.COM/EN/CALENDAR FINANSIA ONLINE INVESTMENT CONFERENCE 2022 Virtual Conference 27 January 2022 THE FY2021 RESULTS ANNOUNCEMENT 23 February 2022 THE FY2021 RESULTS BRIEFING Virtual Conference 25 February 2022 BLS TRANSPORTATION & LOGISTICS DAY Virtual Conference 5 April 2022 NON-DEAL ROADSHOW WITH MORGAN STANLEY Sukhothai Hotel 29 April 2022 ANNUAL GENERAL MEETING OF SHAREHOLDERS Thai AirAsia Head O ce 21 April 2022 THE Q1/2022 RESULTS ANNOUNCEMENT 13 May 2022 THE Q1/2022 RESULTS BRIEFING Virtual Conference 17 May 2022 THAI CORPORATE DAY BY BUALUANG SECURITIES Virtual Conference 1 July 2022 SCBS VIRTUAL CONFERENCE Virtual Conference 26 July 2022 21 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
KEY MILESTONES OF ASIA AVIATION AND THAI AIRASIA Thai AirAsia began operating domestic air services from Bangkok’s Don Mueang Airport to Hat Yai (Songkhla), Phuket and Chiang Mai as well as our first international flight from Bangkok to Singapore with two Boeing 737 aircraft. Thai AirAsia launched new hub in Phuket. Thai AirAsia moved our hub from Don Mueang International Ai rpor t to Suvarnabhumi International Airport. Thai AirAsia received our first Airbus A320 aircraft. Asia Aviation listed on the Stock Exchange of T h a i l a n d ( S E T ) a n d increased its shareholding in Thai AirAsia to 55%. Thai AirAsia received our first aircraft under finance lease term. Thai AirAsia moved our hub from Suvarnabhumi International Airport to Don Mueang International Airport. Thai AirAsia reopened hub in Chiang Mai. Thai Ai rAsia awarded The World Best LCC’s OTP in 2013 from Flightstats. Tha i Ai rAs i a awarded The Best of Airline from The Best of Tha i l and Awards Voted by Chinese Tourists. Thai AirAsia received Airbus A320neo aircraft, the first of its kind in Thailand. Asia Aviation was incorporated and acquired 50% of shares in Thai AirAsia. 2 0 0 4 2 0 0 6 2 0 0 7 2 0 0 9 Thai AirAsia fleet comprised the single aircraft type, the Airbus A320. 2 0 1 0 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 2 22 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
KEY MILESTONES OF ASIA AVIATION AND THAI AIRASIA The company’s Board of Directors has approved Asia Aviation and Thai AirAsia’s shareholding restructuring plan and fundraising to acquire all Thai AirAsia shares. Asia Aviation listed in the Thailand Sustainable Investment (THSI) of 2021. Asia Aviation won Best Crisis Management of the South East Asia. As ia Av iat ion completed acquisition of all Thai AirAsia shares. AirAsia Aviation Academy started launching flagship ser v i ces on t rainings in leadership, team-building, and aviation. A s i a Av i a t i on l i s t ed i n the Thai land Sustainable Investment (THSI) of 2022 for 4th consecutive year. Thai AirAsia was the first Thai Low-fare Carrier to receive AOC Re-Certification. 2 0 1 7 As i a Av i a t i on rece i ved outstanding investor relations award in SET Awards 2018. Thai AirAsia receivedMarketing Excellence Awards of Her Royal Highness Princess Maha Chakri Sirindhorn from Thai Management Association (TMA). 2 0 1 8 Tha i Ai rAs i a l aunched new hub in Suvarnabhumi International Airport. A s i a Av i a t i on l i s t ed i n the Thai land Sustainable Investment (THSI) of 2020. Asia Aviation won Best Annual Report of the South East Asia. 2 0 2 0 Asia Aviation listed in the Th a i l a nd S u s t a i n a b l e Investment (THSI) of 2019. Asia Aviation won Best IR Website of the South East Asia. Thai AirAsia received Airbus A321neo aircraft, the two first of its kind in Thailand. 2 0 1 9 2 0 2 1 2 0 2 2 23 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 24 1. BUSINESS OVERVIEW Asia Aviation Public Company Limited (“Asia Aviation” or “Company”) is a holding company which currently makes an investment only in Thai AirAsia. Thus, the business overview shall be deemed at the operating company Thai AirAsia. Thai AirAsia has the vision of being the leading sustainable travel technology company in Asia, providing more than just affordable flights. Our mission is to deliver top-notch products while embracing technology COMPANY POLICY AND BUSINESS OVERVIEW (GRI 2-1) to lower costs, improve service, and show care to all stakeholders including employees or Allstars, customers, business partners, investors, communities, and governments. We aim to create jobs in the region and become the best place to work where dreams come true. We strive to build a sustainable, globally recognised ASEAN brand that contributes to the economy, society, and environment and provides opportunities for everyone to fly following our slogan “Now Everyone Can Fly”. Furthermore, Thai AirAsia focuses on providing high-frequency service on short-haul international and domestic routes within the five and a half hours flight time from our hubs in Bangkok (Don Mueang International Airport), Bangkok (Suvarnabhumi Airport), Phuket, and Chiang Mai. This enables us to reach the population in Southeast Asia, South Asia, and southern China and Japan. We cater to both leisure and business travellers by focusing on affordable airfares and reliable on-time performance. Thai AirAsia follows the business model of AirAsia Berhad (“AAB”) in Malaysia, operating as a low-fare airline under the “AirAsia” brand. Our single-class, single-family fleet configuration, point-to-point operations, high aircraft utilisation, effective distribution channels, loyalty programme, and comprehensive route network give us a cost advantage over other Thai airlines and many other low-cost carriers (LCC) globally. Our cost advantages, competitive prices, strong branding and marketing, and dependable service have driven our continued growth since our establishment in 2004. 2. BACKGROUND Asia Aviation was incorporated on 14 February 2006 as a company limited with a registered capital of Baht 410,000,000, being common shares of 41,000,000 shares at the par value of Baht 10 per share. The Company is a holding company, which makes an investment only in the low-fare carrier business under Thai AirAsia Company Limited (“Thai AirAsia”), holding 50 percent during that period. On 21 June 2007, the management team, consisting of Chief Executive Officer and high-level management personnel, did a buyout on Asia Aviation from the shareholders at that time as the management team had foreseen the potential growth of Thai AirAsia. MISSION • To provide the highest quality product, embracing technology to reduce cost and enhance service • To care for all our stakeholders, from Allstars, guests, business partners, investors to communities and governments • To create jobs across the region and be the best company to work for where dreams come true • To create a globally recognised, sustainable ASEAN brand focused on adding value to the economy, society and environment VISION To be the leading sustainable travel technology company in Asia providing more than just affordable flights
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 25 In November 2011, Asia Aviation acquired an additional 1 percent shareholding from Mr. Tassapon Bijleveld and held 51 percent in Thai AirAsia. Asia Aviation then became a public company on 26 December 2011 with a registered capital of Baht 485,000,000 and a paid-up capital of Baht 410,000,000, being common shares of 4,100,000,000 shares at the par value of Baht 0.10 per share. Asia Aviation was listed on the Stock Exchange of Thailand on 31 May 2012 under the ticker symbol “AAV” with the fully paid-up capital. The Company used the proceeds from the Initial Public Offering (IPO) to increase its share in Thai AirAsia to 55 percent by subscribing to newly issued shares of the airline. Thai AirAsia, a joint venture between Asia Aviation, who held 51 percent shareholding in Thai AirAsia (Pre-IPO), and AirAsia Aviation Group Limited (“AAAGL”) (formerly AirAsia Investment Ltd.), who held 49 percent, was incorporated on 19 September 2003 to operate a low-fare airline business with a registered capital of Baht 400,000,000. AAAGL is a holding company wholly owned by AAB, a listed company in Bursa Malaysia who operates a low-fare carrier AirAsia in Malaysia. On 29 May 2012, Thai AirAsia increased its registered capital to Baht 435,555,600, being the common shares of 43,555,560 shares at the par value of Baht 10 per share. Asia Aviation has subscribed to the newly issued shares, raising its shareholding to 55 percent while AAAGL was diluted to 45 percent. Capital A Berhad (“Capital A”) (Formerly AirAsia Group Berhad) was established on 16 April 2018 and has assumed the listing status of AAB, holding 100 percent of AAAGL’s stake. Thai AirAsia established a wholly-owned subsidiary, Asia Aviation Center Company Limited on 27 January 2021, to be the academy institution of learning and competency development for aviation tourism and hospitality industries. In May 2021, Thai AirAsia invested in Teleport Everywhere Pte Ltd (Singapore), a company under Capital A operating cargo businesses, with 6.2% shareholding. Due to the COVID-19 pandemic, the Extraordinary General Meeting of Shareholders No. 1/2021 of Asia Aviation, held on 26 November 2021, resolved to approve the allocation of newly-issued ordinary shares and the issuance and offering of Convertible Bonds in a Private Placement and Right Offering. The net proceeds from such transitions were Baht 13,805.42 million (after deducting expenses in connection with the offering). The purpose of utilisation of capital increase approved by the Shareholders’ Meeting were to paying off loans and interest from financial institutions, paying for the purchase of the remaining shares in Thai AirAsia, raising capital in Thai AirAsia and/or lend to Thai AirAsia for it to repay the long-term bonds including interest, and use as working capital. Asia Aviation began the Shareholding Restructuring Plan on 8 December 2021 by increasing its shareholding in Thai AirAsia from 55.0 percent to 69.2 percent and purchased the remaining 30.8 percent of the shares to solely hold 100 percent shares in Thai AirAsia on 20 January 2022, spending approximately Baht 7,800 million. 3. INVESTMENT STRUCTURE (GRI 2-9) Investment structure as of 31 December 2022 is as follows; AirAsia Aviation Group Limited Board of Directors and Management Other Investors Asia Aviation 100% 100% 43% 19% 38% Thai AirAsia (Operating Company) Asia Aviation Center 6.2%(1) Teleport Everywhere Pte Ltd (Singapore) (1) The remainder is held by companies under Capital A
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 26 NATURE OF BUSINESS (GRI 2-6) As Asia Aviation is a holding company that solely invests in Thai AirAsia and does not generate revenue from any other operations materially, the revenue breakdown shall be analysed at the level of the operating company, Thai AirAsia. The revenue breakdown of Thai AirAsia, as reflected in the financial statements for the periods ending 31 December 2020-2022, is presented in the following information. For the year ended 31 December 2020(1) 2021 2022 Baht Million % Baht Million % Baht Million % REVENUES FROM SALES AND SERVICES Passenger service revenues 11,123.4 68.5 3,174.2 70.4 13,432.4 73.4 Baggage handling and other service fees 1,902.8 11.7 464.1 10.3 3,705.2 20.3 Charter flight revenues 252.9 1.6 16.3 0.4 92.3 0.5 In-flight revenues 201 1.2 61.7 1.3 217.6 1.2 Freight revenues 146.4 0.9 109.4 2.4 97.14 0.5 Advertising revenues 7.3 0.1 2.8 0.1 8.67 0.1 TOTAL REVENUES FROM SALES AND SERVICES 13,633.8 84.0 3,828.5 84.9 17,553.3 96.0 OTHER REVENUES Gain on disposals of aircraft and leasehold improvements 1,331.8 8.2 - - 422.9 2.3 Gain on exchange 545.6 3.3 - - - - Gain on derivative - - 391.2 8.7 - - Other income 725.1 4.5 287.8 6.4 314.6 1.7 TOTAL OTHER REVENUES 2,602.5 16.0 679.0 15.1 737.5 4.0 TOTAL REVENUES 16,236.3 100.0 4,507.5 100.0 18,290.1 100 Remark: (1) Reclassification of the comprehensive income statements. 4. BUSINESS OPERATION OF THAI AIRASIA RELIES ON ITS RELATIONSHIP WITH CAPITAL A BERHAD Thai AirAsia receives support from Capital A in many areas, including the permission to be a sole airline operator in Thailand to use AirAsia as a trade name for the business operation, access to market knowledge, and customer services. Presently, Thai AirAsia is leasing its aircraft from AirAsia (Mauritius) Ltd. (“AAM”), an AAB’s subsidiary. Thai AirAsia also relies on online sales channels from AirAsia Com Travel Sdn Bhd (“AACOM”) and uses AirAsia Sea Sdn. Bhd.’s (“AASEA”) joint support department. The Company’s main software is centred in Kuala Lumpur, Malaysia. Thai AirAsia also has access to spare parts kept provided by AAB and Asia Digital Engineering Sdn. Bhd. (“ADE”), a subsidiary of Capital A. Likewise, Thai AirAsia benefits from airport ground services provided by members of AAAGL in certain airports, as well as other services such as fuel hedging, ticket reservation software and airasia rewards. Despite these benefits, decisions to engage in such transactions are made by Thai AirAsia which must pass the resolution from the Board of Directors and the Audit Committee. 73.4% 20.3% 0.5% 1.2% 0.5% 0.1% 2.3% - - 1.7% Passenger service revenues Baggage handling and other service fees Charter flight revenues In-flight revenues Freight revenues Advertising revenues Gain on disposals of aircraft and leasehold improvements Gain on exchange Gain on derivative Other income REVENUES FROM SALES AND SERVICES
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 27 Asia Aviation operates as a holding company, which currently only holds an investment in Thai AirAsia. Thai AirAsia operates a low-fare airline business with the Airbus A320 family, including A320 and A321, generating revenues from scheduled passenger services and ancillary services. 1. SCHEDULED PASSENGER SERVICES Thai AirAsia provides scheduled passenger air travel services at fares lower than the one offered by full-service airlines. However, such tickets do not include services such as baggage fees, seat selection fees, on-board food and beverages and other services. Hence, passengers could pay for those services (frills), in which the revenue will be recorded under the ancillary services. Thai AirAsia consistently monitors its on-time performance (“OTP”) and maintains an excellent record of punctuality, with 92 percent of our flights departing within 15 minutes of the scheduled time in 2022. In 2022, Thai AirAsia carried 9.9 million passengers, with 80 percent travelling on domestic routes and 20 percent on international routes. For the year ended 31 December 2020 2021 2022 Capacity (million seats) 12.6 4.3 11.9 Passengers carried (million) 9.5 2.9 9.9 Load factor (%)(1) 75 68 84 ASK (million)(2) 10,174 3,002 10,308 RPK (million)(3) 7,735 2,083 3,012 Average fare (Baht)(4) 1,199 1,090 1,434 Revenue per ASK (Baht)(5) 1.34 1.28 1.70 Cost per ASK (Baht)(6, 12) 2.31 4.51 2.62 Cost per ASK (non-fuel) (Baht)(7, 12) 1.68 4.04 1.81 Number of aircraft at period end 62 60 54 Number of stages flown 69,368 24,011 65,308 International 10,320 328 13,249 Domestic 59,048 23,683 52,059 Average stage length (kilometre)(8) 804 688 864 Aircraft utilisation (block hours per day)(9) 7.4 5.6 9.6 Ancillary revenue (Baht in millions) 2,285 651 3,319 Ancillary revenue per passenger (Baht) 241 222 334 Fuel consumption (million barrel) 1.76 0.53 1.74 Company’s average market jet fuel price (USD per barrel)(10) 46.7 72.6 124.4 On time performance (%)(11) 96 97 92 (1) Represents the number of passengers carried as a proportion to capacity, which is the number of seats available for passengers (2) Available seat kilometres, which is the total number of seats available on all flights multiplied by the number of kilometres these seats were flown (3) Revenue passenger kilometres, which is the number of paying passengers carried on all flights multiplied by the number of kilometres these seats were flown (4) Calculated as Thai AirAsia’s total passenger revenues divided by total number of passengers carried (5) Calculated as Thai AirAsia’s revenues divided by ASK (6) Calculated as the sum of Thai AirAsia’s operating costs, selling expenses and administrative expenses (but excluding other expenses) divided by ASK (7) Calculated as the sum of Thai AirAsia’s operating costs, selling expenses and administrative expenses (but excluding other expenses) less fuel costs divided by ASK (8) Represents the average number of kilometres flown per flight (9) Represents the average block hours per day per aircraft during the relevant period. Block Hours is calculated by measuring the duration between the time of departure of an aircraft and the time of arrival at its destination. (10) Calculated as average fuel price of Jet kerosene for the period (MOPS price) (11) A flight is deemed “on time” if the actual departure time is no more than 15 minutes of the scheduled departure time. (12) Reclassification of the comprehensive income statements. ASIA AVIATION AND THAI AIRASIA’S BUSINESS Operating Data of Thai AirAsia is shown with the details below. Passengers Domestic International 80% 20% 2022
Siem Reap Hua Hin Chumphon Ranong Krabi Narathiwat Hat Yai Trang Nakhon Si Thammarat Surat Thani Suvarnabhumi Don Mueang Phuket Maldives Buri Ram Ubon Ratchathani Sakon Nakhon Nakhon Phanom Udon Thani Nan Chiang Rai Phitsanulok Chiang Mai India Bangladesh Myanmar Cambodia Vietnam Laos China Taiwan Japan Malaysia Indonesia Thailand Loei Khon Kaen Pe Nang Dhaka Mandalay Roi Et Yangon Kuala Lumpur Johor Bahru Singapore Phnom Penh Bangalore Chennai Kochi Ho Chi Minh City Nha Trang Danang Hanoi Luang Prabang Vientiane Hangzhou Hong Kong Shenzhen Kolkata Gaya Lucknow Jaipur Taipei Fukuoka Bali ROUTE NETWORK (GRI 2-6) 52 Destinations 23 Domestic 29 International 67 Routes 33 Domestic 34 International Thai AirAsia’s Route Operation Hubs Don Mueang Suvarnabhumi Phuket Chiang Mai International Route Domestic Route O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 28
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 29 1.1 NETWORK AND SCHEDULES Thai AirAsia focuses on short-haul routes to airports in and around major populated centres and travel destinations, typically operating within a radius of up to 4,300 kilometres and flight duration of up to five and a half hours from the hub. Thai AirAsia route network offers frequent point-to-point services and is not scheduled in parking its aircraft at airports overnight other than the four hub airports comprising Bangkok (Don Mueang), Bangkok (Suvarnabhumi), Phuket, and Chiang Mai as of 31 December 2022. In 2022, our extensive route network reached a total of 14 countries in Asia, covering 23 domestic destinations and 14 international countries, along with 103 domestic and 46 international routes totalling 149 routes. With our extensive route network, our customers have access to the combined route network of the airlines under Capital A in countries such as Malaysia, Indonesia, and the Philippines. 1.2 NETWORK EXPANSION When considering adding a new route to its network, Thai AirAsia takes into account factors such as potential load factors, population density, economic factor and tourism industry at the point of departure and destination, current and potential competition, airport fees, traffic rights and distance. This process of opening new routes typically takes three months and those new routes are to be approved by Thai AirAsia’s Board of Directors as part of their approval of Thai AirAsia’s budget. If a new route is not profitable after a trial period of between six to eight months, we either lower the frequency of the route or suspend or cancel the route. In 2022, the challenge brought by the COVID-19 outbreak still continued from 2021. However, the demand for travel improved throughout the year and airlines have increased the number of flights in accordance with the higher number of passengers. This was also supported by the government lifting measures to prevent the spread of COVID-19 by allowing travel in or out Thailand. In 2022, Thai AirAsia network had a total of 149 routes while opening inaugurated international routes including Bangkok (Don Mueang) to Fukuoka (Japan) and Dhaka (Bangladesh). Thai AirAsia also added more frequency on the top-ranked domestic and international routes. Nevertheless, Thai AirAsia aims to firmly establish itself as Thailand’s leading carrier in both trunk and secondary tourism destinations to maximise the returns, especially in the domestic market. We also support the passenger growth for connecting domestic travellers and people travelling among the countries within this region. Also, Thai AirAsia is enhancing the Suvarnabhumi hub as the gateway to the international market and strengthening its domestic market. Moreover, Thai AirAsia incorporates cargo routes as part of its expansion plans to ensure that the airline remains competitive in both passenger and cargo segments. 2. ANCILLARY SERVICES Thai AirAsia provides various ancillary services to the passengers, starting from the services before boarding, in-flight services, and other services in relation to our air passenger services. These services generate another stream of revenue in addition to Thai AirAsia’s core revenue from scheduled passenger service. Ancillary revenue is accounting for 17 percent of revenues from sales and services in 2020 and 2021 and 19 percent in 2022, which are grouped into categories as below. 2.1 SERVICES BEFORE BOARDING AND FEES Thai AirAsia offers a range of products and services to passengers on airasia website and at sales counter as follows: • Checked Baggage: Baggage charges are based on the weight of the baggage passengers wish to check-in and also upon the flight hour, timing of purchase and travel period. Pre-booking of the checked baggage at the time of the reservation will bring about lower fees. Additional fees will be charged for baggage with excess weight. • Xpress Baggage: Passengers can claim their baggage as fast as possible upon arrival at their terminal destination. Xpress baggage is available for booking along with flights. • Xtra Carry-On: In each flight, a passenger is allowed to carry two bags with a total of not more than seven kilogrammes. Passengers can purchase Xtra Carry-On to bring more bags, one of which the weight is not more than seven kilogrammes. The Xtra Carry-On must be purchased at the same time of flight booking. • Seat Selection: Seat selection is available with fees; passengers can choose any preferred seats on the flight, which is varied by seat zone, flight hour, and timing of the purchase. Pre-booking of seat selection at the time of the reservation will bring about lower fees. • Checked Sports Equipment: Passengers can check-in sports equipment including golf equipment, diving equipment, surfboard and bicycle. Checked Sports Equipment charges are based on the weight of the Sports Equipment and also upon flight hour, the timing of purchase and travel period. Pre-booking of the checked Sports Equipment at the time of the reservation will bring about lower fees. Additional fees will be charged for Sports Equipment with excess weight. • Bookings and Amendments: Passengers can make a booking at sales counters; booking fees will be applied. Booking amendments are possible 48-hour prior to flight time with amendment fees to be applied (name and route changes are not permitted). An additional service fee may be applied on a case-by-case basis. • Payment Processing Fees: Tickets are available for purchase either through an online purchase on the website or at The AirAsia ticket counter in the airport. Extensive payment method selections are available such as via credit card, debit card, direct debit, ATM payment, counter service, PromptPay, and QR Code with processing fees.
O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 30 • Travel Insurance (Tune Protect): Passengers can purchase Tune Protect Travel Insurance by AirAsia which covers accidental death and dismemberment, personal accident and medical expense, trip cancellation, flight delay, damage to luggage, personal effects, including COVID-19, etc. Thai AirAsia has cooperated with Tune Insurance Public Company Limited and will receive the service fee from selling such insurance policies on the AirAsia website. • Connecting Flight (“Fly-Thru”): Fly-Thru service is available for passengers who wish to conveniently connect flights (both domestic and international flights) from one to another with no bag collecting hassle in between flights at the transit hub. All checked baggage will be safely delivered to the final destination of the passengers’ flight. An additional connecting fee will be applied to the service. • AirAsia Red Carpet: Passengers can purchase additional services that allow them to enjoy a speedier travelling process from check-in to baggage claim. AirAsia Red Carpet privileges include 1) a dedicated check-in area, 2) access to the airport lounge and priority boarding, and 3) priority baggage delivery upon arrival. Red Carpet service is available for flights departing from Don Mueang, Suvarnabhumi, Phuket, Chiang Mai and Chiang Rai in international and domestic terminals as well as Udon Thani, Hat Yai, Chiang Rai in the domestic terminal. Thai AirAsia will receive additional fees from this service. • Airport Priority Service: Passengers can purchase additional services that allow them to enjoy a speedier travelling process from check-in to baggage claim. The service includes 1) a dedicated check-in area, 2) pr ior i ty boarding, and 3) pr ior i ty baggage delivery upon arrival. Thai AirAsia will receive additional fees from this service. • Value Pack: Passengers can select their favourite add-ons with their flight. A value pack has been made easier with this bundle that includes 20 kilogrammes of the checked baggage, a meal, a standard seat selection, and Tune Protect Insurance coverage comprising an on-time guarantee and baggage delay. All of these are bundled together with the flight at a more affordable fare. 2.2 IN-FLIGHT SERVICES The sales of beverages and food to passengers on-board are one of AirAsia in-flight services. Passengers who pre-book the meals online during reservation or via the Manage My Booking menu will have a wider range of menus for selection as well as a discount from on-board prices, in which the food will also be served first prior to the sales of normal on-board in-flight services. Passengers can pre-book such service by no less than 24 hours before the departure time. Additionally, Thai AirAsia offers merchandises on-board including souvenirs such as airplane models and graphic T-shirts; travel gadgets such as phone chargers and earphones; seasonal or festive items and travel essentials such as luggage locks and pillow & comforter kits. 2.3 OTHER SERVICES • Bangkok Bank AirAsia Platinum MasterCard Credit Card: Thai AirAsia and Bangkok Bank launched a co-branded credit card offering special privileges to the customers, including an ability to earn one airasia point for every Baht 20 spent, which the points could be redeemed for discounts on ticket fares together, and 10x airasia points earning for any purchase made on airasia website and sales counters as Platinum membership of airasia rewards. Thai AirAsia will receive shared revenue from spending on this co-branded credit card. • Freight (AirAsia Cargo): Thai AirAsia generates additional revenue from airfreight service on the scheduled flight, consisting of cargo and mail when the aircraft space and weight are available. • Island and City Transfer: Thai AirAsia generates additional revenues from a new all-in-one travel service. Thai AirAsia cooperates with the local van and ferry operators to offer City Transfer and Island services to deliver passengers either from the airport to the cities such as Pai, Chiang Khan, Phuket town, Patong, Sukhothai, and Surin, or from the land to the islands such as Lanta, Lipe, Phangan, Phi, and Samui. Passengers can plan their trip conveniently due to the easy access to the nearby islands and cities. The City Transfer service was still temporarily suspended this year. 3. PRICING AND REVENUE MANAGEMENT Thai AirAsia utilises multiple fare structures and dynamic pricing to enhance ticket revenue optimisation and flexibility to adapt with externalities. In order to maximise the revenue, the number of seats allocated to each fare level for each flight and departure date is determined along with the consideration of the market demand and supply, competition, historical route performance, booking pace movement, as well as domestic and international economic forecasts. As there are a limited number of seats in the lower fare level which require an advance purchase, the earlier a passenger reserves a seat, the higher chance the passenger will be able to purchase a seat at the lowest published fare. All fares displayed are one-way direct flights and also fly-thru flights. The confirmed seat booking after a full payment is non-refundable, except for those relating to any applicable airport tax. However, passengers cannot reroute but can change the travelling date and time at least 48 hours before departure (other than in the case of promotional fares) and subject to the processing fee and the payment of the fare difference, which depend on the matter.
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