Ar2018 PDF

The Sixth Issue / Annual Report 2018
NOW EVERYONE CAN FLY XTRA LONG...
AirAsia X Berhad (734161-K)

insid
what’s
The Digital Airline
AIRASIA X BERHAD
AAX_AR/18
3 Vision 85 Group Quarterly Financial FINANCIAL STATEMENTS

4 Mission Performance 148 Directors’ Report
7 Values 86 Investor Relations 152 Statements of Profit or Loss
10 Thank You Allstars 89 Share Price Performance 153 Statements of Comprehensive
12 Key Highlights 90 Market Capitalisation Income
17 About Us 92 AirAsia X Thailand: 154 Statements of Financial Position

Master of Japan Network 158 Consolidated Statement of
18 AAX Group Destinations
93 AirAsia X Indonesia: Changes in Equity
20 AirAsia X Group & AirAsia Group
Ceased Scheduled Flight 159 Statement of Changes in Equity
Network
Operations
24 Corporate Structure 160 Statements of Cash Flows
94 Corporate Milestones
25 Corporate Information 162 Notes to The Financial
100 2018 Corporate Events Statements
27 Shareholders’ Benefit
106 Media Highlights 232 Statement by Directors
Programme
108 Sustainability Statement 232 Statutory Declaration
28 Board of Directors
110 Safety Always Our Priority 233 Independent Auditors’ Report
30 Our Board at A Glance
112 Innovation to get from Good 238 Analysis of Shareholdings
31 Directors’ Profiles
to Great
38 The Chief Executive Officers 239 List of Directors’ Shareholdings
113 Rewarding & Developing
40 Leadership Team 240 List of Top 30 Largest
Our Talent
Shareholders
42 Profiles of the Leadership Team 115 Creating A Healthy
241 Analysis of Warrant Holdings
60 AirAsia X Thailand Leadership Environment
Team 242 List of Directors’ Warrant
118 Serving Our Community
Holdings
64 GCEO’s Statement 119 Risk Management
243 List of Top 30 Largest Warrant
68 CEO’s Management Discussion & 122 Corporate Governance Overview Holders
Analysis Statement
244 Corporate Directory
78 Business Model 128 Statement on Risk Management
246 Notice of Annual General
80 Five-Year Financial & Operational & Internal Control
Meeting
Highlights 134 Audit Committee Report
249 Glossary
81 Key Performance Indicators 136 Additional Compliance
82 Simplified Group Statement of Information
Financial Position & Segmental • Form of Proxy
142 Code of Business Conduct
Analysis
de
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Go online to our website at:
www.airasiax.com
13
NOTICE OF ANNUAL GENERAL MEETING
th
THEME
The Digital Airline ANNUAL GENERAL MEETING OF
AIRASIA X BERHAD
RATIONALE
WHERE
Digitalisation is key to delivering great flying
experiences. And at AirAsia X, we are extending CAE Kuala Lumpur
Lot PT25B, Jalan KLIA S5,
our leadership into the digital space by Southern Support Zone,
harnessing technology to optimise processes, Kuala Lumpur International Airport,
introduce new business models, improve revenue 64000 Sepang, Selangor Darul Ehsan,
Malaysia
streams and increase market reach. Best of all,
technology also greatly enhances our guests’
experience.
WHEN
With 31 destinations across Asia, Australia Wednesday, 26 June 2019
and the USA to choose from, we are eager
to engage with our guests to give them a
more personalised digital experience and TIME
to distinguish our brand in an increasingly
10.00 a.m.
competitive market. Together with the
dedication and passion of our awesome team of
Allstars, we are confident of AirAsia X taking to
the skies as the digital airline of the future.
Annual Report 2018 1

The Digital Airline
2 AirAsia X Berhad (734161-K)

3
TO BE THE LARGEST LOW COST
billion
AIRLINE IN ASIA AND
serving
the people
WHO ARE CURRENTLY UNDERSERVED WITH
POOR CONNECTIVITY AND HIGH FARES.

The Digital Airline
To be the best company to work for

whereby employees are treated as
1
part of a big family
CREATE A GLOBALLY RECOGNISED

2
ASEAN BRAND
To attain the lowest cost

3 so that everyone can fly
with AirAsia
Maintain the highest quality

product, embracing technology
4
to reduce cost and enhance
service levels

The Digital Airline

Dare to Dream
PROGRESS COMES FROM INNOVATION.
BOTH REQUIRE CHANGE TO HAPPEN.
People First
CARE FOR OUR PEOPLE, CARE FOR OUR GUESTS.
Make it Happen
LEARN FAST AND DELIVER MORE WITH LESS.
Be Guest-Obsessed
UNDERSTAND DEEPLY WHAT OUR GUESTS WANT.
THEN GIVE THEM MORE THAN THEY EXPECT.
One AirAsia
WE ARE ONE AIRLINE, WITH ONE VISION,
AND ONE PEOPLE.
Safety Always
SAFETY IS EVERYONE’S RESPONSIBILITY,
IT STARTS WITH YOU.

The Digital Airline
FROM US :
From left to right:
Benyamin Ismail
Nadda Buranasiri
Tan Sri Tony Fernandes
Datuk Kamarudin Meranun

key
The Digital Airline
AIRASIA X MARKET SHARE TO DESTINATIONS WE OPERATE INTO

AirAsia X Malaysia (Operate From Malaysia)
Passenger Share
Australia Greater China South Korea Japan
60% 55% 68% 44%
Network
3
No. of Routes
AirAsia X Malaysia = 25 (excluding JED & MED)
AirAsia X Thailand = 6
AirAsia X Indonesia = 1 No. of Hubs
(as at 31 December 2018)
AirAsia X
KEY MILESTONE
Unique Routes Routes Launched
AirAsia X Malaysia = 9 AirAsia X Malaysia = 6
World’s Best Low-Cost Airline AirAsia X Thailand = 0 AirAsia X Thailand = 2
Premium Cabin for the sixth
year running AirAsia X Indonesia = 0 AirAsia X Indonesia = 0
Stations
No. of Destinations No. of Countries No. of Flights Per
(as at 31 December 2018) Week-Average
AirAsia X Malaysia = 25 AirAsia X Malaysia = 7 220 AirAsia X Malaysia
(excluding JED & MED) (excluding JED & MED)
AirAsia X Thailand = 6 AirAsia X Thailand = 3 77 AirAsia X Thailand
AirAsia X Indonesia = 1 AirAsia X Indonesia = 1 2 AirAsia X Indonesia
Social Media subscribers as at 31 Mar 2019
12,027,088 26,600,000 299,753 3,530 20,227
7,946,904 1,374,710 120,597 8,005 24,535
1,694,390 1,990,143

FINANCIAL HIGHLIGHTS (MAAX) No. of Aircraft
35
Revenue: Operating Loss:
RM4.6
billion
(RM204)
million
Net Loss: Total Assets: AirAsia X Malaysia

AirAsia X
(RM301)
million
RM4.3
billion
6,167,465 Malaysia
24
AirAsia X Thailand
AirAsia X
2,009,813 Thailand
9
PASSENGERS CARRIED
8,593,205
AirAsia X Indonesia AirAsia X
Indonesia
415,927 2
AirAsia X Malaysia AirAsia X Thailand AirAsia X Indonesia
CALL IATA: D7
ICAO: XAX
IATA: XJ
ICAO: TAX
IATA: XT
ICAO: IDX
SIGNS Call Sign: Call Sign: Call Sign:
XANADU EXPRESS WING RED PHOENIX
No. of Allstars
AirAsia X Malaysia = 2,427

Load Factor
AirAsia X Thailand = 750
AirAsia X Group
AirAsia X Malaysia = 81% AirAsia X Indonesia = 135
(excluding JED & MED)
AirAsia X Thailand = 89%

24
Allstar
AirAsia X Indonesia = 71% nationalities
Notes:
1) All figures refer to AirAsia X Group unless stated otherwise.
2) AirAsia X Group includes AirAsia X Malaysia, AirAsia X Thailand and AirAsia X Indonesia.
3) Financials refer to AirAsia X Berhad's 2018 audited financial statements.
4) All figures provided are as at 31 December 2018.
5) Source of Market Share: PaxIs, based on number of passengers carried from January to December 2018.

The Digital Airline
PASSENGERS CARRIED
8,593,205
NO. OF AIRCRAFT
35

Based on our breakthrough business model, we believe
we have the lowest unit cost base of any long-haul
airline in the world, with cost per available seat
kilometre (CASK) of US¢3.20 and CASK (excluding fuel) of
US¢1.95 for the year ended 2018.
A
irAsia X Berhad (AirAsia X) is a Based on our breakthrough business
leading long-haul, low-cost airline model, we believe we have the lowest
operating primarily in the Asia- unit cost base of any long-haul airline in
Pacific region. Established as Fly Asian the world, with cost per available seat
Express (FAX) in 2006, we started out kilometre (CASK) of US¢3.20 and CASK
servicing rural areas of Sarawak and Sabah (excluding fuel) of US¢1.95 for the year
with turboprop aircraft before undergoing ended 2018. This enables us to offer
a comprehensive rebranding in September fares that are targeted, on average, to
2007 followed by our first flight to the Gold be 30% to 50% lower than full-service
Coast, Australia in November 2007. carriers and to stimulate new market
demand.
Today, AirAsia X as a Group serves 31
destinations across Asia (Bali, Sapporo, On top of that, AirAsia X offers a Quiet
Tokyo, Osaka, Nagoya, Fukuoka, Seoul, Zone on all flights across our network.
Busan, Jeju, Taipei, Xi’an, Beijing, The service enhancement is exclusively
Hangzhou, Chengdu, Shanghai, Chongqing, for guests above the age of 12. The
Changsha, Tianjin, Wuhan, Lanzhou, New Quiet Zone features soft lighting and a
Delhi, Jaipur and Amritsar), Australia more relaxed cabin atmosphere, which
(Sydney, Melbourne, Perth, Brisbane and help to ensure a more pleasant journey.
the Gold Coast), the Middle East (Jeddah
and Medina) and the United States of AirAsia X was voted as having the
America (Hawaii) from two hubs: Kuala World’s Best Low-Cost Airline Premium
Lumpur and Bangkok. We are the first low- Cabin for six consecutive years while
cost airline in Asean to be given approval the AirAsia Group was named the
by the Federal Aviation Administration to World’s Best Low-Cost Airline for 10
operate into USA. consecutive years at the Skytrax World
Airline Awards.
As at 31 December 2018, we have a core
fleet of 35 Airbus A330-300 aircraft
including 11 in our affiliates – nine in AirAsia
X Thailand and two in AirAsia X Indonesia.

The Digital Airline
AAX Group
destinations
(as at 12 March 2019)

AIRASIA X MALAYSIA NETWORK
AUSTRALIA CHINA JAPAN SOUTH KOREA

Gold Coast Beijing Tokyo (Haneda) Seoul
Melbourne Chengdu Osaka Busan
Perth Chongqing Sapporo Jeju
Sydney Hangzhou Fukuoka
Shanghai
Wuhan
Xi’an
Tianjin
Changsha
Lanzhou
Taipei
INDIA SAUDI ARABIA UNITED STATES INDONESIA

Jaipur Jeddah Hawaii (Honolulu) Bali (Denpasar)
New Delhi Medina
Amritsar
AIRASIA X THAILAND NETWORK

AUSTRALIA CHINA JAPAN SOUTH KOREA
Brisbane Shanghai Tokyo (Narita) Seoul
Osaka
Sapporo
Nagoya

The Digital Airline
passengers in
2018 from
Connected 732,000
3,120,000
passengers in 2011
From servicing rural areas

of Sarawak and Sabah with
turboprop aircraft, AirAsia X as
a Group now operates a core
fleet of 35 Airbus A330-300
aircraft, flying to 31 destinations
across Asia, Australia, the
Middle East and the United FLY-THRU
States of America. FACTS
Connecting over
147
destinations
AirAsia X Group &
network
AirAsia Group
via Malaysia (as at 12 March 2019)

AK-D7* remains the largest
AOC pair for Fly-Thru traffic
*AK refers to AirAsia Malaysia and

D7 refers to AirAsia X Malaysia

The Digital Airline
structure As at 31 March 2019
AIRASIA X BERHAD
THAI AIRASIA X PT INDONESIA

CO., LTD
Thai associate 49% 49% AIRASIA EXTRA
Indonesian joint venture
AAX MAURITIUS FLY X LIMITED AIRASIA X SERVICES AAX AVIATION
100%
ONE LIMITED PTY LTD CAPITAL LTD.
100%
Aircraft leasing facilities
Dormant 100% 100%
Logistical & marketing Holding co. of leasing entities
services
AAX LEASING AAX LEASING AAX LEASING AAX LEASING

ONE LTD. TWO LTD. THREE LTD. FOUR LTD.
100%
Leasing entity
100%
Leasing entity
100%
Leasing entity
100%
Leasing entity
AAX LEASING AAX LEASING

FIVE LTD. SIX LTD.
100%
Leasing entity
100%
Leasing entity
AAX LEASING AAX LEASING AAX LEASING AAX LEASING AAX LEASING
SEVEN LTD. EIGHT LTD. NINE LTD. TEN LTD. ELEVEN LTD.
100%
Leasing entity
100%
Leasing entity
100%
Leasing entity
100%
Leasing entity
100%
Leasing entity

corporate
BOARD OF DIRECTORS
TAN SRI RAFIDAH AZIZ TAN SRI ANTHONY FRANCIS LIM KIAN ONN
(also known as Tan Sri Rafidah) FERNANDES (also known as Mr. Lim)
Senior Independent Non-Executive (also known as Tan Sri Tony Fernandes) Non-Independent Non-Executive Director
Chairman Non-Independent Non-Executive
Director TAN SRI ASMAT BIN
DATUK KAMARUDIN BIN KAMALUDIN
MERANUN DATO’ YUSLI BIN MOHAMED (also known as Tan Sri Asmat)
(also known as Datuk Kamarudin Meranun) YUSOFF Independent Non-Executive Director
Non-Independent Non-Executive (also known as Dato’ Yusli)
Director Independent Non-Executive Director DATO’ FAM LEE EE
(also known as Dato’ Fam)
Non-Independent Non-Executive Director
AUDIT COMMITTEE AUDITORS SHARE REGISTRAR

Dato’ Yusli bin Mohamed Yusoff Ernst & Young (AF 0039) Boardroom Share Registrars Sdn Bhd
Chartered Accountants (formerly known as Symphony Share Registrars
Tan Sri Asmat bin Kamaludin
Level 23A, Menara Milenium Sdn Bhd) (Company No.: 378993-D)
Lim Kian Onn Jalan Damanlela Level 6, Symphony House
Pusat Bandar Damansara Pusat Dagangan Dana 1
NOMINATION AND 50490 Kuala Lumpur Jalan PJU 1A/46
REMUNERATION COMMITTEE Wilayah Persekutuan 47301 Petaling Jaya
Tel : +603 7495 8000 Selangor Darul Ehsan
Tan Sri Rafidah Aziz Fax : +603 2095 5332 Tel : +603 7849 0777 (Helpdesk)
Dato’ Yusli bin Mohamed Yusoff Fax : +603 7841 8151/8152
Dato’ Fam Lee Ee REGISTERED OFFICE Email : bsr.helpdesk@boardroomlimited.
AirAsia X Berhad (Company No.: 734161-K) com
RISK MANAGEMENT COMMITTEE Unit 30-01, Level 30, Tower A, Vertical
Tan Sri Rafidah Aziz Business Suite SOLICITORS
Avenue 3, Bangsar South Foong & Partners
Dato’ Yusli bin Mohamed Yusoff
No. 8, Jalan Kerinchi 13-1 Menara 1MK, Kompleks 1 Mont’ Kiara
Dato’ Fam Lee Ee 59200 Kuala Lumpur No. 1 Jalan Kiara, Mont’ Kiara
Wilayah Persekutuan 50480 Kuala Lumpur
SAFETY REVIEW BOARD Tel : +603 2783 9191 Wilayah Persekutuan
Tan Sri Rafidah Aziz Fax : +603 2783 9111 Tel : +603 6419 0822
Datuk Kamarudin bin Meranun Fax : +603 6419 0823
Dato’ Fam Lee Ee HEAD OFFICE
RedQ
Benyamin bin Ismail STOCK EXCHANGE LISTING
Jalan Pekeliling 5
Main Market of Bursa Malaysia Securities
Lapangan Terbang Antarabangsa Kuala
Berhad
COMPANY SECRETARIES Lumpur (KLIA2)
Listing Date : 10 July 2013
Jasmindar Kaur a/p Sarban Singh 64000 KLIA
Stock Name : AAX
Selangor Darul Ehsan
(MAICSA 7002687) Stock Code : 5238
Tel : +603 8660 4600
Lau Yen Hoon Fax : +603 8660 7722
(MAICSA 7061368) Email : aax_shareholder@airasia.com
Website : www.airasiax.com

SO WE DID.
FLY
WE MAKE IT
The world’s best-selling widebody is
now even better. The A330neo has
new engines and new wings, bringing
a 14% fuel burn efficiency over
its predecessor with an additional
400nm range. It also features the
new Airspace cabin, which sets a
modern benchmark in passenger
comfort and wellbeing.
Modern. We make it fly.
airbus.com
SHAREHOLDERS’ BENEFIT PROGRAMME
CALLING ALL ELIGIBLE AIRASIA X SHAREHOLDERS TO REDEEM
RETURN TICKETS TO ANY
AIRASIA X
DESTINATION
ONLY FOR SHAREHOLDERS WHO SUBSCRIBED TO AND
ACQUIRED A MINIMUM OF 10,000 IPO SHARES AND HAVE
HELD ON UP TO OUR SIXTH ANNIVERSARY
4th
Anniversary 6th 5th
Anniversary
10 July 2017 - 9 July 2018 10 July 2018 - 9 July 2019
Anniversary
10 July 2019 - 9 July 2020
THE BENEFIT:
• Category A: Min. 10,000 – 99,999 shares
1 Return Flight with Zero Base Fare to any AirAsia X destination
• Category B: Min. 100,000 shares and above

3 Return Flights with Zero Base Fare to any AirAsia X destination
HOW TO CHECK ELIGIBILITY & REDEEM YOUR TICKET
Email us at aax_shareholder@airasia.com or contact us at +603 8660 0007

(Monday – Friday, 9am to 6pm) to provide the following details:
Full Name as per your National Registration Identity Card (NRIC):

NRIC Number/Passport Number:
BIG Card Number (if applicable):
AirAsia Member User ID (if applicable):
Travel Destination:
Lowest fares@airasia.com
Preferred Travel Date and Time:
TERMS AND CONDITIONS

• All return tickets must be utilised before the start of next anniversary; no extension is allowed.
• All return tickets are not available during the blackout period (refer to AirAsia X website).
• All tickets from previous years will be forfeited if not redeemed.
• For further terms and conditions, please refer to AirAsia X website at www.airasiax.com

The Digital Airline
Datuk Kamarudin bin Meranun
Dato’ Yusli bin Mohamed Yusoff Tan Sri Tony Fernandes
Dato’ Fam Lee Ee
Board of
Directors
Lim Kian Onn
Tan Sri Rafidah Aziz

The Digital Airline
Our Board at A Glance
1 4
NATIONALITY
100%
Senior Non-Independent
Independent Non-Executive
Non-Executive Directors
Chairman
2
Malaysian
Independent
Non-Executive
Directors
POSITION
AGE GROUP
BOARD
3 2
50-59 60-69
2 70-79
COMPOSITION
BOARD OF DIRECTORS ETHNICITY
4 2 1
- Committee Membership
TAN SRI RAFIDAH AZIZ

Senior Independent Non-Executive Chairman
DATUK KAMARUDIN MERANUN

Malay Chinese Indian
TAN SRI TONY FERNANDES
DATO’ YUSLI MOHAMED YUSOFF

GENDER
Independent Non-Executive Director
LIM KIAN ONN
6 1
TAN SRI ASMAT KAMALUDIN

DATO’ FAM LEE EE Male Female

Audit Committee Nomination and Remuneration Committee Risk Management Committee Safety Review Board of the Company

Directors’ Profiles
T
an Sri Rafidah, Malaysian (female),
aged 75, was appointed as an
Director and Chairman of the
Board on 3 March 2011 and re-designated
as a Senior Independent Non-Executive
Chairman upon listing of the Company
on 10 July 2013. She is also the Chairman
of the Nomination and Remuneration
Committee as well as the Risk Management
Committee of the Board, and the Safety
Review Board of the Company.
She holds a Bachelor of Arts degree

in Economics and a Master’s degree in
Economics from the University of Malaya.
Tan Sri Rafidah was Malaysia’s longest-

serving Minister of International Trade and
Industry, having served in that capacity
from 1987 to 2008, and contributes a
wealth of international experience.
Prior to this, she has also held the portfolio

of Minister of Public Enterprises from 1980
to 1987 and Deputy Minister of Finance
from 1977 to 1980. Tan Sri Rafidah also
lectured at the Faculty of Economics and
Administration at the University of Malaya,
between 1966 and 1976. She now serves
as an Adjunct Professor at the College of
Business, University Utara Malaysia, and the
Chancellor of the Meritus University.
She has received various awards from the

states of Selangor, Perak, Melaka, Sarawak
and Terengganu as well as from Thailand,
Argentina and Chile. She has also been
conferred Honorary Doctorates from
University Putra Malaysia, University Utara
Malaysia, University Tun Razak Malaysia,
University of Malaya, HELP University and
the Dominican University of California,
United States of America. TAN SRI RAFIDAH AZIZ
Senior Independent Non-Executive Chairman
Tan Sri Rafidah also serves as the Chairman
of Megasteel Sdn Bhd and Pinewood
Iskandar Malaysia Studio. She is an Advisor
to the Government of Sarawak on the
Renewable Energy Corridor (RECODA) and
she is also Patron of several NGOs.

The Digital Airline
D
atuk Kamarudin bin Meranun (male),
Malaysian, aged 57, is the co-founder
of the Company. Datuk Kamarudin
was appointed as Non-Independent
Non-Executive Director of the Company on 6
June 2006. He was appointed as Chairman of
the Board on 3 February 2010 till 3 March 2011.
Datuk Kamarudin was re-designated as
Non-Independent Executive Director and Group
Chief Executive Officer on 30 January 2015. On
1 November 2018, he was re-designated as a
Non-Independent Non-Executive Director. He is
also a member of the Safety Review Board of
the Company.
In December 2001, Datuk Kamarudin, together

with Tan Sri Tony Fernandes, Dato’ Pahamin
Ab Rajab and Dato’ Abdul Aziz bin Abu
Bakar acquired struggling domestic airline
AirAsia and, with the help of Conor McCarthy,
relaunched it as a budget travel pioneer in
Asia and built it into the world’s best low-cost
carrier.
Prior to setting up the Company, Datuk

Kamarudin worked at Arab-Malaysian Merchant
Bank from 1988 to 1993 as a Portfolio Manager,
managing both institutional and high net-
worth individual clients’ investment funds. In
1994, he was appointed as Executive Director
of Innosabah Capital Management Sdn Bhd,
a subsidiary of Innosabah Securities Sdn
Bhd. He subsequently acquired the shares
of the joint venture partner of Innosabah
Capital Management Sdn Bhd, which was later
renamed Intrinsic Capital Management Sdn
Bhd.
He holds a Diploma in Actuarial Science from

University Technology MARA (UiTM), and
graduated with a BSc with Distinction (Magna
Cum Laude) majoring in Finance in 1986 and an
MBA in 1987 from Central Michigan University.
He received the Darjah Panglima Jasa Negara

(PJN), which carries the title Datuk, from the
Malaysian King in November 2013.
Datuk Kamarudin is a Non-Independent

Executive Chairman of AirAsia Group
Berhad and AirAsia Berhad. He is also a
Non-Independent Non-Executive Director of
Tune Protect Group Berhad and a Director of
Yayasan Pendidikan Titiwangsa.
DATUK KAMARUDIN BIN MERANUN

T
an Sri Tony Fernandes (male),
Malaysian, aged 55, is the
co-founder of the Company.
Fernandes was appointed
as Non-Independent Non-Executive
Director of the Company on 18 July
2006 and was re-designated as the
Non-Independent Executive Director
and Co-Group Chief Executive Officer
on 1 January 2018. On 1 November
2018, he was re-designated as a Non-
Independent Non-Executive Director of
the Company.
Fernandes is one of Asia’s most

recognisable entrepreneurs, best
known for co-founding AirAsia and
democratising air travel in the region.
In December 2001, Fernandes, together
with Datuk Kamarudin Meranun, Dato’
Pahamin Ab Rajab and Dato’ Abdul
Aziz bin Abu Bakar, acquired struggling
domestic airline AirAsia and, with the
help of Conor McCarthy, relaunched it
as a pioneer of budget travel in Asia,
subsequently building it into the world’s
best low-cost carrier.
Fernandes studied in the UK, and

qualified as an Associate Member of
the Association of Chartered Certified
Accountants in 1991, then as a Fellow
Member in 1996. An accountant by
training, he began his career in Virgin
Group before returning to Malaysia as
Warner Music Group’s Vice President
for Southeast Asia. This was just prior to
launching AirAsia.
He has received numerous honours

and awards over the course of his
career. These include the Honour of
the Commander of the Order of the
British Empire, conferred by Her Majesty
Queen Elizabeth II in 2011, and the
Commander of the Legion d’Honneur,
awarded by the French Government
for outstanding contributions to the
economy of France through the aviation
industry.
Fernandes is also a Non-Independent

Executive Director and Group Chief
Executive Officer of AirAsia Group
Berhad.
TAN SRI TONY FERNANDES

The Digital Airline
D
ato’ Yusli, Malaysian (male), aged 60,
was appointed as an Independent Non-
Executive Director of the Company
on 13 May 2013. He is the Chairman
of the Audit Committee and a member of the
Nomination and Remuneration Committee as
well as the Risk Management Committee of the
Board.
He graduated from the University of Essex,

United Kingdom with a Bachelor of Economics
in 1981. He qualified as a member of the Institute
of Chartered Accountants England and Wales
and is a member of the Malaysian Institute of
Accountants.
He commenced his professional career in 1981 as

a Trainee Accountant with Peat Marwick Mitchell
& Co in London, United Kingdom.
He returned to Malaysia and held various key

positions at industrial and financial groups in the
country’s capital, providing him with experience
in a number of different industries including
property and infrastructure development,
telecommunications, engineering and merchant
banking.
Dato’ Yusli entered the stockbroking industry

when he was appointed as the Chief Executive
Director of CIMB Securities Sdn Bhd from 2000
to 2004. He also served as the Chairman of the
Association of Stockbroking Companies Malaysia
from 2003 to 2004.
From 2004 to 2011, he was the Executive

Director/Chief Executive Officer of Bursa
Malaysia Berhad, previously known as the Kuala
Lumpur Stock Exchange. During the same
period, he also sat on the Board of the Capital
Market Development Fund and was an Executive
Committee member of the Financial Reporting
Foundation of Malaysia.
He also serves as an Independent Non-Executive

Director on the Board of Directors of a few
public listed companies in Malaysia, namely
Mulpha International Berhad, Mudajaya Group
Berhad Group, Westports Holdings Berhad and
FGV Holdings Berhad. He also sits on the Board
of Dato’ HM Shah Foundation, Australaysia
Resources & Minerals Berhad, Malaysian Institute
of Corporate Governance and Infinity Trustee
Berhad. Outside his professional engagements,
he also serves as the Patron of the Victoria DATO’ YUSLI BIN MOHAMED YUSOFF
Institution Old Boys Association. Currently, Dato’ Independent Non-Executive Director
Yusli is the President of the Malaysian Institute of
Corporate Governance.

M
r Lim, Malaysian (male), aged
62, was appointed as an
Alternate Director to Dato’
Seri Kalimullah bin Masheerul
Hassan (Dato’ Seri Kalimullah) on 11
June 2007. He ceased as an Alternate
Director to Dato’ Seri Kalimullah and
was appointed as a Non-Independent
Non-Executive Director of the Company
on 10 July 2012. Mr Lim was re-
designated as an Independent Non-
Executive Director on 26 February 2016.
On 24 May 2016, he was re-designated
as an Non-Independent Non-Executive
Director of the Company. Mr Lim is also
a member of the Audit Committee of
the Board.
He is a member of the Institute of

Chartered Accountants in England &
Wales and the Malaysian Institute of
Accountants. He served his articleship
with KMG Thomson McLintock in
London and was a consultant with
Andersen Consulting from 1981 to 1984.
Between 1984 and 1993, he was with
Hong Leong Group, Malaysia as an
Executive Director in the stockbroking
arm responsible for corporate finance,
research and institutional sales.
Mr Lim founded the Libra Capital Group

in 1994 and co-founded the ECM Libra
Group in 2002. He is the Managing
Director of ECM Libra Financial Group
Berhad since 16 July 2015 and also
serves as the Non-Executive Non-
Independent Chairman of Plato Capital
Limited, a company listed on the Stock
Exchange of Singapore and a trustee of
the ECM Libra Foundation.
LIM KIAN ONN


The Digital Airline
T
an Sri Asmat, Malaysian (male),
aged 75, was appointed as an
Director of the Company on 13
May 2013. He is also a member of the
Audit Committee of the Board.
Tan Sri Asmat graduated from the

University of Malaya with a Bachelor of
Arts (Honours) degree in Economics.
He also holds a Diploma in European
Economic Integration from the
University of Amsterdam.
Tan Sri Asmat has vast experience of

35 years in various capacities in the
public service and his last post as the
Secretary General of the Ministry of
International Trade & Industry Malaysia,
a position he held since May 1992. In the
last five (5) years prior to his retirement
in 2001, Tan Sri Asmat served as a
Board member of Malaysia Technology
Development Corporation, Multimedia
Development Corporation, Malaysian
Trade Development Corporation,
Permodalan Nasional Berhad, Small
and Medium Industries Development
Corporation and Perbadanan Johor.
Tan Sri Asmat serves as the Non-

Executive Chairman of Panasonic
Manufacturing Malaysia Berhad
and Compugates Holdings Berhad,
companies listed on the Main Market of
Bursa Malaysia Securities Berhad. He is
also the Non-Executive Vice Chairman
of YTL Cement Berhad and a Director
of The Royal Bank of Scotland Berhad
and JACTIM Foundation, all public
companies. Tan Sri Asmat is a Governor
of JACTIM and has also represented
Malaysia for several years as Governor
on the Governing Board of The
Economic Research Institute for Asean
and East Asia.
TAN SRI ASMAT BIN KAMALUDIN


D
ato’ Fam, Malaysian (male),
aged 58, was appointed as
a Non-Independent Non-
Executive Director of the
Company on 24 March 2008. He is
also a member of the Nomination and
Remuneration Committee as well as
Risk Management Committee of the
Board and a member of the Safety
Review Board of the Company.
He received his BA (Hons) from the

University of Malaya in 1986 and LLB
(Hons) from the University of Liverpool,
England in 1989. Upon obtaining his
Certificate of Legal Practice in 1990, he
has been practising law since 1991 and is
currently a Partner at Messrs Gan & Zul
Advocates & Solicitors.
Dato’ Fam sat on the Board of Trustees

of Yayasan PEJATI from 1996 to
2007. Since 2001, he has served as a
legal advisor to the Chinese Guilds
and Association and charitable
organisations such as Yayasan SSL
Haemodialysis Centre in Petaling Jaya,
Selangor.
He also serves as a Senior Independent

Non-Executive Director of AirAsia
Group Berhad.
Declaration of Directors:
• Family relationship
None of the Directors has any family relationship
with any other Director and/or major shareholder
of AirAsia X Berhad
• Conflict of Interest
None of the Directors has any conflict of interest
with AirAsia X Berhad
• Conviction for Offences

None of the Directors has been convicted for any
public offence during the financial year ended 31
December 2018 or had any penalty imposed by the
relevant regulatory bodies within the past five (5) DATO’ FAM LEE EE
years, other than traffic offences, if any Non-Independent Non-Executive Director
• Attendance of Board Meetings
The attendance of the Directors at Board of
Directors’ meetings for the financial year ended
31 December 2018 is disclosed in the Corporate
Governance Overview Statement

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The Chief Executive Officers

AirAsia X Berhad
NADDA BURANASIRI
Group Chief Executive Officer

AirAsia X Berhad

BENYAMIN ISMAIL
Chief Executive Officer

AirAsia X Berhad

The Digital Airline
FROM LEFT TO RIGHT (TOP TO BOTTOM)

First Row: Wong Mee Yen, Nadda Buranasiri, Benyamin Ismail
Second Row: Moses Devanayagam, Eddie Tan, Hanif Idrose Mohamed
Third Row: Captain Suresh Bangah, Ong Soon Yee

FROM LEFT TO RIGHT (TOP TO BOTTOM)
Fourth Row: Vanessa Regan, Captain Lim Kok Hooi, Azahar Othman, Seng Kian Aik
Fifth Row: Muhammad Alif Soon, Aspa Linda Ahmad, Venggatarao Niadu, Selvam Velaitham, Wong Ooi Ling, Jessica Man Hui Sze

The Digital Airline
Profiles of the Leadership Team

NADDA BURANASIRI
01 GROUP CHIEF EXECUTIVE OFFICER
Nationality Thai
Age 57
Gender Male
Date of Appointment 1 November 2018
Responsibilities:
Group
• Aligns all AOCs within AirAsia X Group in a parallel
direction to deliver sustainable business growth through
focus on core markets
• Ensures all AOCs fully utilise the Group’s strengths to
reduce costs through negotiations and commercial activity
• Ensures all AOCs share best practices among each other
while working collaboratively as one team
• Embraces the One AirAsia vision and values in
transforming the existing business into a travel and
financial platform company
Thailand
• Provides leadership in guiding AirAsia X Thailand to
achieve its vision and mission, while overseeing growth
strategies as approved by the Board
• Ensures continuous improvements in safety, quality and
security while maintaining high standards
• Supervises the operation to be more customer-centric by
utilising available processes, technologies and training
• Leads transformation into a travel and financial platform
company while embracing and promoting One AirAsia
values
Experience:
• Gained experience in marketing and sales from leading
companies such as Siam Cement and American Express
• Joined J Walter Thompson, the world-renowned
marketing and communications company, as Account
Group Director in 1991
• Part of the team that set up Universal Music (Thailand)
Co Ltd and was promoted to Managing Director in 2007 Additional Information:
• Joined Warner Music (Thailand) as Managing Director • Nadda is a member of the Board of
until 2014 Directors of Thai AirAsia X Co., Ltd
• Part of the set-up team for Thai AirAsia X Co., Ltd, and • Nadda does not own any shares of
appointed as Chief Executive Officer in 2014 AirAsia X Berhad
• Appointed as Group Chief Executive Officer of AirAsia X
Berhad, 1 November 2018
Qualifications and Professional Membership:

• Bachelor of Business Management in Marketing,
Assumption University, Thailand
• Directors Certificate Program (DCP 254), Thai Institute of
Directors Association (IOD)

BENYAMIN ISMAIL
02 CHIEF EXECUTIVE OFFICER
Nationality Malaysian
Age 42
Gender Male
Date of Appointment 1 September 2015
Responsibilities:
• Provides leadership and vision towards increasing
shareholder value and growth of AirAsia X while delivering
our Sustainability commitments
• Manages the Group’s business and affairs, ensuring
operational excellence and strong governance
• Executes the turnaround plan of AirAsia X
• Develops and spearheads high-level business and growth
strategies in line with AirAsia X’s vision and mission, as
approved by the Board
Experience:
• Handled Debt Capital Markets portfolio at Affin Investment
Bank, 2003
• Joined Maybank Investment Bank to manage Debt Capital
Markets, 2004
• Joined CIMB Investment Bank focusing on Debt Capital
Markets, 2007
• Joined AirAsia as Head of Investor Relations, March 2010
• Promoted to Group Head of Investor Relations, Corporate
Development and Implementation, 2014
• Appointed AirAsia X Chief Executive Officer (CEO)
effective 1 September 2015 after assuming the role of
Acting CEO on 30 January 2015

• Bachelor of Commerce (Banking & Finance), Curtin
University of Technology, Australia
• Master of Electric Commerce, Edith Cowan University,
Australia
Membership of Board Committees in AirAsia X:

• Safety Review Board (Member)
Awards/Recognition:
• Four-time winner of Best Investor Relations Officer by
Corporate Governance Asia (2011-2014)
• Two-time recipient of Best IR Professional award by Bursa
Malaysia’s Malaysian Investor Relations Association (MIRA)
(2011 & 2012)
Additional Information:
• Benyamin does not own any shares of AirAsia X Berhad

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RACHEL WONG MEE YEN

03 CHIEF FINANCIAL OFFICER
Age 53
Gender Female
Date of Appointment 1 January 2018
Responsibilities:
• Manages the financial and management accounting
aspects of AirAsia X operations
• Ensures accurate and timely preparation of financial and
accounting information
• Manages business risks and assurance
• Manages capital funding, tax-related matters and treasury
functions
• Ensures compliance with proper corporate governance
• Develops and implements initiatives and strategies to
improve the company’s financial performance
Experience:
• Started career with BDO Binder as an Article Student,
1986
• Joined KPMG Peat Marwick as an Audit Senior, 1991
• Joined Press Metal Berhad in 1992, with last position held
as Group Financial Controller cum Company Secretary
• Joined TV Media Pte Ltd as Regional Financial Controller,
1996
• Joined MCS Microsystems Sdn Bhd as Operations Director
cum Company Secretary, 1997
• Joined AirAsia in 2003, last position held as Group
Financial Controller
• Started own business in retail and consumer marketing,
2007
• Joined LMG Rail Car Sdn Bhd as CFO, 2013
• Joined Beacon International Specialist Centre Sdn Bhd
as Director of Corporate Finance and Business Analysis
Performance, 2015
• Joined AirAsia X as CFO on 1 January 2018

• Member of the Malaysian Institute of Certified Public
Accountants (MICPA)
• Member of the Malaysian Institute of Accountants (MIA)

MOSES DEVANAYAGAM
04 SENIOR DIRECTOR
Age 68
Gender Male
Date of Appointment 1 October 2013
Responsibilities:
• Leads the coordination of operational functions within
the AirAsia Group, airport authorities and government
agencies including the Malaysian Aviation Commission and
the Civil Aviation Authority of Malaysia
• Advises and mentors the Operations team
• Instrumental in setting up Operations functions including
Cargo, Flight Operations, Engineering, Ground and Group
Operations, In-Flight Operations, Safety and Security
Experience:
• 48 years of aviation experience including key positions in
leading airlines in Singapore and Malaysia:
- Joined Malaysia-Singapore Airlines, 1971
- Served Malaysia Airline System Berhad in various
senior management positions including General
Manager-Operations, Head of Contracts Management
and Warranty and Contracts Manager, 1972
- Joined AirAsia X as Director of Operations, 2007
- Regional Head of Operations of AirAsia Berhad, 2009
- Appointed as Senior Director, 2013

• Associate Member of the Royal Aeronautical Institute
United Kingdom (by award), 1975
• Cadet/apprentice Technical Services in-house training with
Malaysia-Singapore Airlines, 1971/72
• Type-rated approvals from Qantas and Air New Zealand,
1971
Awards/Recognition:
• 40 years Long-Service Award from Malaysia Airlines

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CAPT SURESH BANGAH

05 FLIGHT OPERATIONS DIRECTOR
Age 44
Gender Male
Responsibilities:
• Coordinates, supervises and monitors the functions and
performance of management personnel, pilots, cabin crew
and all departments within Flight Operations
• Manages the safety and security of all flights
• Liaison person with local and international regulators,
ensuring operations are in line with the Air Operator
Certificate
• Represents the company's interest in national and
international bodies and institutions as far as flight
operations are concerned
Experience:
• Started as a pilot with AirAsia, 2003
• Internal auditor of Flight Operations at AirAsia, 2005
• Cadet Pilot Coordinator managing the Cadet Pilot Training
Programme, 2007-2009
• Flight Deck Recruitment Manager responsible for hiring
and promoting pilots, 2009-2010
• Joined AirAsia X as Chief Pilot, Operations, 2010
• Promoted to Flight Operations Director, 2013

• Air Transport Pilot License, 1999
• A320 Type Rating License, 2007
Awards/Recognition:
• 10 Years Long-Service Award from AirAsia Group

LIM KOK HOOI
06 HEAD OF CORPORATE SAFETY
Age 47
Gender Male
Date of Appointment 22 January 2018
Responsibilities:
• Provides guidance and direction for AirAsia X’s Safety
Management System
• Ensures safety documentation accurately reflects the
current situation, monitors the effectiveness of corrective
actions, and provides periodic reports on safety
performance
• Provides independent advice to the CEO, senior managers
and other personnel on safety-related matters
Experience:
• Kok Hooi has been in the airline industry since the early
1990s, and has broad experience in safety and training
with an accumulated more than 15,000 flying hours:
- Started commercial flying in the Dornier 228, then
Twin-Otter (DHC-6), Fokker 50, B737, A340 and now,
A330
- Joined Malaysian Helicopter Services as a co-pilot, and
was seconded to Pelangi Air Sdn Bhd, Kuala Lumpur,
and to Royal Air Cambodge, Phnom Penh, 1992
- Joined Malaysia Airlines as a Captain of DHC 6 Twin
Otter, based in Miri, Sarawak, following which he
became a Captain of Fokker 50, B737-400 and
B737-800, 1997
- Joined AirAsia X as a Captain of A340/330, leading the
flight data monitoring team, 2011
- Became Chief Pilot Flight Safety, 2016
- Appointed to current post of Safety Director, January
2018

• Commercial Pilot License Australia
• Commercial Pilot License Malaysia
• Airline Transport Pilot License Malaysia
• Type Rated Instructor (TRI) A340/A330/Fokker 50/DHC-6
Twin Otter
• Member of Malaysia National Runway Safety Team
• Member of Malaysia Flight Safety Team
• IATA qualified trained SMS implementer
• Cranfield University Certified Aviation Investigator
• IATA Trained Aviation Auditor
Awards/Recognition:
• Approved by Civil Aviation Authority of Malaysia as
a nominated post holder

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07 VANESSA REGAN
HEAD OF GROUP COMMUNICATIONS
Nationality New Zealander
Age 46
Gender Female
Date of Appointment 14 May 2018
Responsibilities:
• Provides communication leadership for the senior
management team
• Develops and implements AirAsia X’s communication
strategies including corporate communication, CEO
and management profiling, media relations, issues
management and commercial communication to support
revenue and sales objectives in all key markets
• Focused on continual improvement across all
communication channels and on driving brand awareness
and reputation in key markets
• Promotes innovation across the communication spectrum
to support the AirAsia X turnaround plan
• Responsible for managing the external and internal
profile of the business with all key stakeholders including
staff, media, government, regulators and travel & tourism
industry partners
Experience:
• Over 25 years’ experience in a range of high-profile
corporate communication roles in Asia, Australia and New
Zealand (NZ):
- Publicity Manager at SKY TV, driving strong publicity
and celebrity profiling outcomes for NZ’s then pay TV
leader, 1993-1995
- Publicity Manager at TV3/TV4, the leading national
broadcasting company in NZ, 1996-1998
- PR Executive at DDB Needham PR and advertising
agency, 1999-2000
- Communications Manager for SKYCITY Entertainment
Group (NZ and Australia), responsible for the media Qualifications and Professional
profile and communication strategy of the gaming, Membership:
tourism and entertainment business. Launched • Bachelor of Communication Studies
numerous key tourism products - Sky Jump and (PR Major) Auckland, NZ, 1993
Vertigo Climb off the Sky Tower in Auckland. Also
oversaw marketing and PR for the Village Cinemas Awards/Recognition:
chain of cinemas throughout NZ, 2000-2008 • Virgin Australia CEO awards: finalist
- Head of Marketing and Communications for Tigerair - 2016 for diligence in achieving
Australia, responsible for managing the marketing, outstanding safety and communication
media/communication and customer services functions strategy outcomes for the business
for the business. Key part of the senior leadership team (within the Virgin Australia Group of
that successfully re-launched the airline in July 2011. Airlines)
Instrumental in development of the Tigerair turnaround • PRINZ (PR Institute of NZ) runner up
strategy and rebrand of the airline in July 2011 award in 2005 for the launch of the new
- Key media spokesperson for Tigerair Australia next to SKYCITY Auckland Convention Centre
CEO, 2009-2018 and dine by Peter Gordon premium
- Joined AirAsia X in May 2018 restaurant
• Quest for the Best employee award
2008 from SKYCITY Entertainment
Group

ONG SOON YEE
08 HEAD OF ENGINEERING
Age 50
Gender Male
Date of Appointment 1 March 2018
Responsibilities:
• Manages the Department of Engineering overseeing
resources, staffing, system enhancement and maintenance
• Leads the team with focus on technologies inclusive of
AMOS, skywise, AIMS and Airman for defect monitoring
• Manages departmental operating budget
• Drives key performance indicators across all areas of
engineering function to ensure that Parts M and 145 are
delivered within budget and on time to the highest quality
standards
Experience:
• Joined AirAsia (then DRB-HICOM), 1996
• Became a Licensed Aircraft Engineer B1.1 holder with
A320 type rated, 2009
• Maintenance Manager at Malaysia AirAsia, managing
Allstars and maintenance activities in Kuala Lumpur, Johor
Bahru, Penang, Kuching and Kota Kinabalu, 2014
• Head of Ground Operations and Nominated Post Holder to
Civil Aviation Authority of Malaysia, 2016
• Joined AirAsia X Berhad in early 2018

• Master of Business Administration, University of New
Castle, 2005
• EASA part 66 B1.1 Licence, 2007
• CAAM part 66 B1.1 Licence, 2009

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VENGGATARAO NIADU
09 HEAD OF REGULATORY & NETWORK
Age 44
Gender Male
Responsibilities:
• Assesses new markets based on strategic fit, financial
potential, growth opportunity, risks and possible entry
points
• Develops network expansion plans for company’s long and
short-term objectives
• Develops schedules to utilise crew manpower and aircraft
efficiently and effectively, considering commercial
requirements and network connectivity
• Builds and maintains relationships with local and foreign
regulators as well as airports, while monitoring and
negotiating bilateral agreements in relevant markets
• Manages and negotiates arrival and departure slots at
local and foreign destinations
Experience:
• Venggatarao has more than 10 years of management
experience in the aviation industry, in cross-functional
roles across network and fleet planning
– Started his career with SINGER Sdn Bhd as an internal
auditor, 1996
– Moved to AirAsia Berhad as a scheduling executive,
2005
– Moved to AirAsia X in 2006 as a Scheduling and
Network Executive
– Promoted to Manager of Network and Scheduling,
2010
– Appointed as Head of Network and Regulatory, 2014

• Master of Business Administration, Anglia Ruskin
University, 2018
Awards/Recognition:
• Best Network Performance Award (Airline Category) by
World Routes Award

SENG KIAN AIK
10 HEAD OF INTERNAL AUDIT
Age 47
Gender Male
Date of Appointment 3 April 2017
Responsibilities:
• Provides independent and objective assurance as to the
adequacy and effectiveness of system of internal controls,
risk management and governance processes
Experience:
• Started his career as an auditor at Azman, Wong,
Salleh & Co, 1997
• Joined PricewaterhouseCoopers in Assurance & Business
Advisory Services and rose to Audit Manager, 2000
• Served Sunway Group Internal Audit and led Sunway
REIT’s Internal Audit function as Assistant General
Manager, 2007
• Joined AirAsia X as Head of Internal Audit, 2017

• Member of the Institute of Internal Auditors Malaysia
(IIAM)
• Member of the Malaysian Institute of Certified Public
Accountants (MICPA)
• Member of the Chartered Accountants Australia and New
Zealand (CAANZ)

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WONG OOI LING

11 HEAD OF CORPORATE QUALITY AND ASSURANCE
Age 48
Gender Female
Date of Appointment 1 July 2016
Responsibilities:
• Ensures core business processes necessary for meeting
business objectives are established, implemented and
documented
• Provides support to business units in process development
and continual improvement
• Works with Heads of Department of all business
operations to coordinate business continuity management
(BCM) related activities including development and
documentation of business continuity plan
Experience:
• Joined PricewaterhouseCoopers in its Audit and
Assurance Department, 1995
• Joined EON Bank Berhad as Corporate Planning Manager,
2000
• Vice President of Group Management Services and PMO,
EON Bank Berhad, 2003
• Joined Measat Broadcast Network Systems Sdn Bhd
(Astro) as a Senior Manager in Planning, Broadcast and
Operation, 2007
• Joined DRB-HICOM Group as a Senior Manager in GST
PMO, 2014
• Joined AirAsia X as Head of Corporate Quality and
Assurance, 2016

• Bachelor of Business (Accounting), Monash University,
Australia

HANIF IDROSE MOHAMED
12 HEAD OF INVESTOR RELATIONS AND CORPORATE FINANCE
Age 31
Gender Male
Responsibilities:
• Engages with the investment community to ensure full
appreciation of the company’s business activities, strategy
and prospects to allow the market to make informed
judgments
• Secures financing and undertakes corporate exercises
• Coordinates shareholder meetings, conferences and
investor roadshows; leads the annual general meetings
& financial analyst briefings; releases financial data,
publishes reports as well as leads the production of the
company’s annual report
• Responsible for matters related to aircraft leases
Experience:
• Started career at Telekom Malaysia Berhad (TM) as
Assistant Manager of Investor Relations, 2011
• Promoted to Manager of Investor Relations of TM, 2015
• Joined AirAsia as Investor Relations Manager, 2016
• Joined AirAsia X to spearhead Investor Relations
department, 2016
• Given an expanded role within the company and
appointed Head of Investor Relations and Corporate
Finance, 2017

• Bachelor of Business and Commerce (Accounting, Banking
& Finance), Monash University, Australia
• Master of Applied Finance, Monash University, Australia
• Member of the Malaysian Investor Relations Association
(MIRA)
• Member of the Malaysia Australia Business Council
(MABC)
Awards/Recognition:
• Two-time recipient of Best IR Professional award by
Bursa Malaysia’s Malaysian Investor Relations Association
(MIRA), 2017 & 2018
• TM Group CEO Merit Award 2013

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MUHAMMAD ALIF SOON

13 HEAD OF GROUND OPERATIONS
Age 43
Gender Male
Responsibilities:
• Leads the team of Guest Service Assistants in improving
our customer experience
• Ensures full compliance with all regulatory requirements
by the department
Experience:
• Joined AirAsia as a Guest Service Assistant, 2004
• Moved to Airasia X as Duty Executive, 2010
• Promoted as Airport Manager, 2013
• Appointed as Head of Ground Operations, 2015

• Sijil Pelajaran Malaysia
Awards/Recognition:

ASPA LINDA AHMAD
14 CABIN CREW MANAGER
Age 42
Gender Female
Date of Appointment 16 March 2015
Responsibilities:
• Leads and manages manpower planning for the entire
AirAsia X Cabin Crew Department
• Responsible for the management and supervision of all
Cabin Operation activities and safety, ensuring these are
conducted in accordance with applicable regulations and
company standards
• Ensures cabin crew deliver world-class customer service
Experience:
• More than 20 years of experience in the aviation industry:
– Started her career with AirAsia as a Cabin Crew (2002)
and was promoted to Senior Cabin Crew (2003),
Purser (2005) and a Cabin Crew Executive (2009)
– Moved to AirAsia X and served as an Assistant Cabin
Crew Manager, 2010
– Further enhanced her skills set by joining the Cabin
Safety Department as a Safety Examiner, and was
promoted to Cabin Safety Manager in 2012
– Appointed as Head Cabin Crew of AirAsia X, leading
more than 1,000 cabin crew, 2015

• B737 Type Rating Certificate, 2002
• A320 Type Rating Certificate, 2006
Awards/Recognition:

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SELVAM VELAITHAM
15 PART M - CONTINUING AIRWORTHINESS MANAGER
Age 50
Gender Male
Date of Appointment 1 August 2018
Responsibilities:
• Institutes and maintains an effective and efficient
administrative system to ensure Continuing Airworthiness
activities comply with Civil Aviation Authority of Malaysia
(CAAM) requirements
• Ensures implementation of Safety Management System
including management of safety risks within the
organisation
• Provides communication and supports the senior
leadership team on regulatory matters regarding
airworthiness
Experience:
• Over 25 years’ experience in aircraft engineering &
maintenance
- Licensed Aircraft Engineer in base maintenance and
line maintenance at Malaysia Airlines Berhad, 1998 –
2004 and AirAsia Berhad, 2004 – 2006
- Quality Assurance Inspector in AirAsia Berhad, 2006 –
2013
- CAAM Nominated Post Holder as Quality Assurance
Manager at AirAsia X Berhad, 2014 – 2018
- Joined AirAsia X as a manager, January 2014
- Became a CAAM Nominated Post Holder as Part M -
Continuing Airworthiness Manager, August 2018

• Diploma of Aircraft Maintenance - Oxford Air Training
School, 1998
• Aircraft Maintenance Engineer Licence - CAA UK, 1998
• Aircraft Maintenance Engineer Licence - DCA Malaysia,
1998

JESSICA MAN HUI SZE
16 GENERAL COUNSEL
Age 31
Gender Female
Date of Appointment 1 February 2018
Responsibilities:
• Primary contact point for all legal matters relating to the
operations of the airline business, including regulatory,
compliance and litigation
• Provides strategic support to the Board of Directors and
senior management of AirAsia X and AirAsia Group on
complex and/or high value legal matters and projects
• Synergises with AirAsia Group Legal leadership in
supporting the most crucial business and compliance
needs of the airline and the AirAsia Group
• Designated legal point of contact responsible for advising
the airline on legal risks, exposure and liabilities
• Oversees the legal department’s assistance with company
secretarial matters
Experience:
• Pupillage with Chooi & Company, 2012
• Joined the Corporate and Financial Services Department
of Chooi & Company as an Associate, 2013
• Joined the Corporate Department of Lee Hishammuddin
Allen & Gledhill as an Associate, 2014
• Seconded by Lee Hishammuddin Allen & Gledhill to
Gibraltar BSN Life Bhd to provide assistance to the
company’s Legal Department, 2016
• Joined AirAsia X Berhad as Legal Manager, 2017
• Promoted to General Counsel in February 2018

• Admitted as an Advocate and Solicitor of the High Court
of Malaya, 2013
• Certificate in Legal Practice in Malaysia, 2011
• Bachelor of Laws (LLB), University of London, 2010
Awards/Recognition:
• Top 100 General Counsel listed in the Legal 500 GC
Powerlist: Southeast Asia 2019

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EDDIE TAN
17 LINE OPERATIONS MANAGER
Age 46
Gender Male
Responsibilities:
• Oversees and manages all overseas stations, including the
set-up of new stations
• Manages ground operations related contracts
• Ensures accurate and timely execution of all processes and
procedures whilst maintaining the highest level of safety,
security and operational efficiency throughout the network
Experience:
• Eddie has more than 27 years of management experience
in handling operations in the aviation industry:
– Started career with Singapore Airlines Limited as a
Passenger Services Agent, 1992
– Joined All Nippon Airways Co Limited as Traffic and
Flight Operations Officer, 1995
– Joined AirAsia Berhad as Station Manager,
Kuching, 2005
– Transferred to Kuala Lumpur Hub (LCCT) as a Station
Manager, 2006
– Appointed as Station Manager for AirAsia X, Kuala
Lumpur hub, 2010
– Appointed as Line Operations Manager for AirAsia X,
2014

• Tertiary studies – Beaufort College, Western Australia
Awards/Recognition:

AZAHAR OTHMAN
18 RAMP MANAGER
Age 61
Gender Male
Date of Appointment 1 February 2013
Responsibilities:
• Ensures that ramp and transport services, loading
and unloading of aircraft, weight and balance, ground
equipment and mishandled load are managed according
to company procedures and established standards
• Represents AirAsia X at meetings with airport authorities
and with other in-house departments in matters involving
ramp handling
• Conducts training for weight & balance and ramp handling
Experience:
• Azahar has 39 years of experience in the aviation industry:
– Joined Malaysia Airlines as a traffic clerk, 1978
– Promoted to Customer Service Officer of Malaysia
Airlines, 1988
– Moved to KL Airport Services (KLAS) as Flight
Operation Officer, 1999
– Promoted to Passenger Handling Supervisor, 2001
– Assigned as Aircraft Handling Supervisor, later in 2001
– Duty Manager of Flight Operations, 2001
– Promoted to Head of Aircraft Handling and Flight
Operation, 2009
– Joined AirAsia X as Ramp Duty Manager, 2013

• Malaysian Certificate of Education
Declaration of Leadership Team:
• Family relationship
None of the Leadership Team has any family
relationship with any other Director and/or major
shareholder of AirAsia X Berhad
• Conflict of Interest
None of the Leadership Team has any conflict of
interest with AirAsia X Berhad
• Conviction for Offences

None of the Leadership Team has been
convicted for any public offence during the
financial year ended 31 December 2018 or had
any penalty imposed by the relevant regulatory
bodies within the past five (5) years, other than
traffic offences, if any
• Other Directorship
None of the Leadership Team has any other
directorship in public companies

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AirAsia X Thailand
Leadership Team
CAPTAIN PITTINUN PHAIRAT

KRIRKWOOT BOONSORN
INTARASAK PORNPATHANANANGOON
Head of Flight Operations Head of Engineering Chief Financial Officer

NADDA BURANASIRI MATANA THIENTHONG NITIROTE KITCHAROEN
Chief Executive Officer Head of Commercial Head of Group Operations

The Digital Airline
GCEO’S
Statement
DEAR VALUED
SHAREHOLDERS,
It is an honour and privilege to present this statement as Group CEO of AirAsia X,

a position to which I was appointed at the beginning of November 2018. An honour
because in assuming my position I am stepping into the shoes of not just one but
two great Asean aviation leaders – Tan Sri Tony Fernandes and Datuk Kamarudin
Meranun, who founded AirAsia X and were co-Group CEOs before me. And a privilege
because AirAsia X is the pioneering long-haul low-cost airline in the region,
stimulating demand where previously there was none, winning countless awards as
we make millions of exciting travel dreams come true.
W
hen Tony and Kamarudin set up AirAsia X 11 years ago, many said the airline would never take off. A low-cost carrier
for short-haul flights – yes. But, low-cost for long haul – it has never been done before! Yet AirAsia X has proven the
sceptics wrong. It took a few years to fine-tune our model; however, in 2016, we finally did it – we achieved our first
full-year of profit. We repeated the feat in 2017, demonstrating it was not just a one-off. In 2018, unfortunately, we experienced a
setback. But this was mainly due to factors beyond our control, such as the 28% increase in fuel cost, currency volatility, natural
disasters in the markets we serve, and general elections in Malaysia, which is our home base and where most of our routes
originate.
Despite these challenges, 2018 marked a year of growth. We made all the right moves in 2018 by cutting cost further, adding
capacity, and capturing greater market share even as the airline posted its first losses since 2016. It was the first year since 2015
that we took in new aircraft, a total of five on lease – two for Malaysia and three for Thailand. We expanded the Group network
with a net addition of four new destinations for AirAsia X Malaysia and two for AirAsia X Thailand. New routes developed
support our strategy of establishing country dominance, namely strengthening our position in core markets – Greater China,
Japan, South Korea and India. It saw us introduce flights from Kuala Lumpur to two destinations in India – Amritsar and Jaipur
– where we were already serving New Delhi; as well as Changsha and Tianjin in China where we were already operating flights
to Beijing, Shanghai, Hangzhou, Wuhan, Xi’an, Chengdu and Chongqing. From Bangkok, we introduced flights to Nagoya and
Sapporo. We also increased the frequency of flights to Greater China, Japan and South Korea.

We made all the
right moves in 2018
by cutting cost
further, adding
capacity, and
capturing greater
market share.
NADDA BURANASIRI
GROUP CHIEF EXECUTIVE OFFICER

The Digital Airline
GCEO’s Statement
AirAsia X Group increased the

number of guests carried during
the year by 10%, from 7.8
million in 2017 to 8.6 million
in 2018.
While building our key markets we also pulled out of A drastic cost saving move was to shift our base in Melbourne
countries where we were serving just single destinations, from Tullamarine Airport to Avalon Airport, which to us
namely Tehran in Iran; Male in the Maldives; and Kathmandu is ideal for low-cost carriers as its focus is to make flying
in Nepal. The only destination left in our expanding network easier through ‘convenient, uncomplicated and time-efficient
that is an exception to our country dominance strategy is service’ and ‘pocket-friendly fares’. Cost savings from use of
Honolulu which, however, has such an exceptionally strong the airport will be translated into even more attractive fares
tourist pull that our being the only low-cost airline in Asean to for our guests. We are the first international carrier to fly to
fly to this destination ensures constantly high load factors. In Avalon Airport and are confident the move will bring in the
fact, this route has proven so successful that we increased the numbers to secure Melbourne as one of our more popular
frequency of flights from four times a week initially to daily in destinations. Although we did not build much capacity to
August in order to cater to demand. Australia this year, it remains one of our core markets and our
associate in Thailand has plans to penetrate the continent in
Overall, through our route rationalisation, AirAsia X Group the near future, once it receives more aircraft.
increased the number of guests carried during the year by
10%, from 7.8 million in 2017 to 8.6 million in 2018. AirAsia X Thailand, in fact, was a star performer in the Group
during the year, further validating our long-haul low-cost
We realise that the bigger our airline becomes, the more model. Without some of the constraints that faced the
imperative it is to operate as leanly and efficiently as possible. Malaysian operations, Thailand pulled in an exceptionally
Hence, we continued to constantly review our cost structures strong set of results to achieve a record net operating profit
and seek ways to trim any unnecessary expense. This is of USD12.0 million.
something that is truly part of our DNA as it is integral to the
AirAsia business model. Indeed, being part of the AirAsia Following a strategy it called ‘Master of Japan Network’,
family provides additional avenues for cost saving, especially our associate launched the Nagoya and Sapporo routes, as
now as the Group is progressing towards the One AirAsia mentioned earlier, while increasing its flight frequency to
concept. Under One AirAsia, various commercial, engineering Tokyo (Narita). These led to a 17% increase in capacity, and a
and procurement functions are being streamlined and total of 1,154,202 guests carried to the Land of the Rising Sun.
centralised to avoid duplication and create greater resource Although the load factors to Nagoya and Sapporo averaged
efficiencies. We also continue to leverage AirAsia’s expansive 75% and 72% respectively, we are confident of the numbers
network as a funnel into our own routes. The combined route increasing as the routes mature. A key challenge for Thailand
networks of AirAsia and AirAsia X Groups is truly one of our now is to meet an internally set target of growing the number
greatest strengths and something that sets us apart from of guests carried in 2019 by 50% along with a fleet expansion
other long-haul low-cost airlines. from nine to 14.

We are building up our Thai operations’ fleet,
with two out of five aircraft to be received
being brand-new Airbus A330neo
Our operations in Indonesia, meanwhile, was plagued by The price of fuel has begun to stabilise, enabling us to
a series of natural disasters – including earthquakes and hedge a significant portion of our requirements for the year
tsunamis across the vast archipelago – following Mount at reasonable prices. This, combined with intense focus on
Agung’s continuous eruptions since November 2017. To cost-saving initiatives, will drive our cost down, providing
manage the drop in tourist numbers, in May we adopted a the impetus for further growth. Growth is certainly on the
dual-hub strategy, operating out of Jakarta in addition to our cards for AirAsia X Thailand, which is preparing for a listing
original base in Bali. However, performance did not pick as at the end of 2019. Already performing very well, funds from
well as we hoped, leading management to make the difficult the initial public offering (IPO) will stand it in good stead
yet strategic decision to operate AirAsia X Indonesia on a to accelerate its onward journey. Malaysia, meanwhile, will
non-scheduled commercial airline basis. Its last route, from continue to strengthen its route network while supporting
Bali to Tokyo (Narita), was terminated in January 2019. and receiving support from its associate in Thailand and the
rest of the AirAsia Group.
Looking forward, we have some very firm plans to guide
our continued growth. While we will be looking to optimise These are certainly very exciting times for us. The year 2018
our Malaysian route network, we are building up our Thai brought mixed fortunes for the different AOCs, but I believe
operations’ fleet, with two out of five aircraft to be received we are more aligned now and stand stronger as a Group as
being brand-new Airbus A330neo. These open up some we enter the year 2019. All the building blocks are in place to
very exciting possibilities. The sheer number of destinations launch AirAsia X into a brighter future. With the continued
that lie within a 10-hour flying radius from Bangkok is support of our Allstars, we are ready to take this metaphorical
dizzying; we are almost too spoilt for choice. Having learnt X-tra long leap together. Our Allstars are our heroes, giving us
from experience, however, we will seek either to continue to their all over the last 11 years. We could not have got to where
build on our market dominance strategy or launch another we are today without them, and we are determined to take
Honolulu, or two. them with us as we reach for the skies.
My own ‘key personal indicator’ is to ensure AirAsia X Group

– Malaysia and Thailand – works together closely to achieve Thank you.
our common goals while also capitalising the synergies of
operating in a more interconnected manner with AirAsia Nadda Buranasiri
Group. A key area that we have yet to fully leverage is our Group Chief Executive Officer
sister airline Group’s extensive data accumulated from more AirAsia X Berhad
than half a billion guests. The potential of mining this data for
more targeted, effective marketing as well as an enhanced
guest experience is just mind-boggling, and is something we
are determined to look into. As the concept of One AirAsia
becomes more grounded in reality, there will be increasing
opportunities for us to tap into this huge data bank to further
drive our passenger loads and ancillary income.

The Digital Airline
CEO’S MANAGEMENT DISCUSSION & ANALYSIS
DEAR VALUED
SHAREHOLDERS,
It has been an eventful year for AirAsia X as we continued to strengthen OUR

market share across Asia Pacific. Despite a challenging 2018, we made major
investments that will increase our footprint as Asia’s leading medium-to-long-haul
low-cost carrier with new routes, more flights, a growing fleet and even more
investments in digital technology. This expansion has helped us offer our guests
A better customer experience aT affordable fares, leading to another year of
record-high number of guests carried.
T
he financial year 2018 has been tough but operationally Launched four new destinations in India and China
successful for AirAsia X. After two years of
making profits, it was definitely with a measure of India is an amazing market with a vast number of tourist sites.
disappointment to see our financial numbers dwindle as In choosing our destinations, we are guided by what they
a result of increasing fuel prices which averaged USD89 have to offer. This year, we launched Kuala Lumpur – Jaipur
per barrel, 35% higher than USD66 in 2017; uncertainties in February followed by Kuala Lumpur – Amritsar in August.
brought about by the election of the opposition coalition in Jaipur, the famous Pink City, lies within easy access of other
Malaysia, the first time ever since the nation’s independence popular destinations in Rajasthan such as Jodhpur, Jaisalmer,
in 1957; and, most unfortunately, a series of natural disasters Udaipur and Bikaner. Amritsar is home to the revered Golden
in Indonesia, Japan and Hawaii, all among our key markets. Temple and is one of the most visited destinations in India
Despite the full year losses, I share the same sentiment as because of this Sikh shrine.
our Group CEO Nadda Buranasiri that we made all the right
moves in 2018 to prepare a stronger platform for 2019. China is not just supplying the global tourism market with
the highest number of travellers; the country itself is the
After 11 years of fine-tuning our strategies, we have definitely third most popular among global tourists; in fact the most
hit upon what we believe is a winning formula: to build popular in the world if Hong Kong and Macau (another two
country dominance in our network; leverage our sister group destinations that we serve) are included. It is particularly
AirAsia’s vast network and resources to create cost and popular as a tourist destination among Asians because of
operational efficiencies; and look continuously for other the Chinese diaspora, leading to many wanting to visit so
means to cut costs further such as renegotiation of aircraft as to be able to discover their roots. During the year, we
leases and ground handling. With these three focus areas in launched flights from Kuala Lumpur to Changsha and Tianjin
mind, we achieved a few notable successes during the year in December.
that we can be proud of and which will help to create an even
stronger base for AirAsia X to support future growth. These new launches further strengthened our presence in
India and China, two core markets, and were made possible
by the addition of two aircraft during the year, as well as
termination of three routes.

BENYAMIN ISMAIL
CHIEF EXECUTIVE OFFICER

The Digital Airline
Terminated single-country destination routes

The year saw us pull back from three single-country destinations namely Tehran in Iran, Kathmandu in Nepal and Male in the
Maldives. We had launched Tehran and Kathmandu because they are very popular tourist destinations. They still are. However,
we do not have the benefit of country support to truly capitalise on these routes. Male was a route that we took over from our
short-haul sister airline, and recognised that the destination is better suited to their narrow-bodied, smaller aircraft. Flights to
Tehran stopped in May, to Male in August, and to Kathmandu in October.
Created barrier to entry to Hawaii

Hawaii is one of those very special places that has earned a place in the hearts of everyone around the world. While the
volcanic eruption in May followed by floods in August and September dampened tourism for a while, everyone knows it is just
temporary, and tourists will keep flocking back. The success of our route, launched in 2017, inspired a competitor to also fly to
Honolulu. Then we increased our flight frequency from four a week to daily, and our competitor withdrew its route completely.
Continued to develop ancillary offerings

Ancillary offerings serve as a hedge against costs we cannot control, such as fuel. We therefore place a great deal of
emphasis on driving ancillary sales. In recent years we introduced the use of dynamic pricing mechanisms for baggage and
seat upgrades, both of which are now the largest contributors to ancillary income. This year, we continued to innovate on
our offerings, partnering Caravelo.com to introduce a bidding system for flatbed upgrades; enhancing our inflight menu with
destination-based cuisine; and delivering pre-purchased Duty Free and other merchandise to guests on-board or designated
pick-up points in airports. Revenue from inflight Duty Free more than doubled, recording the highest increase among our
ancillary portfolio.
Maintained our low-cost edge

As AirAsia X increases in size, the airline will drive further economies of scale from long-term deals with airports and ground
handling operators. We continued to re-negotiate contracts with airport authorities and ground-handling service providers
to derive the best possible deals. Significantly, we became the first international airline to be given the right to operate out of
Avalon Airport in Melbourne, an airport that provides great convenience to travellers at a lower cost than standard airports.
This is a testament of the airline’s commitment to work with airports that support efficient operations and growth with
attractive financial agreements. It takes no more than 15 minutes on average for a passenger to get from the aircraft to the
kerb-side, ready to leave. While Avalon is farther from the central business district than Tullamarine Airport, we worked with bus
companies to develop seamless connectivity to the city and suburbs. Avalon is also close to one of Australia’s biggest tourist
attractions, the Great Ocean Road, and many of our guests would appreciate the opportunity to experience a road trip along
this very scenic coastal stretch.
Efforts to bring down costs resulted in our cost per available seat kilometre excluding fuel (CASK ex-fuel) dropping from 8.7
sen in 2017 to 8.06 sen in 2018. In May 2018, we were also recognised by global trip planner, Rome2rio, for being the World’s
Best Value International Airline.
Renewed our IOSA certification

In April, AirAsia X Malaysia received our third biennial IATA Operational Safety Audit (IOSA) registration, affirming our
commitment to the highest standards of operational safety. Safety is at the heart of everything we do. We strive continuously
not only to meet regulatory requirements but to surpass them as the safety of our guests and Allstars is more important
than anything else. AirAsia X Malaysia joined the IOSA Registry on 16 April 2015, becoming the second airline in Malaysia to
successfully pass the internationally recognised operational safety audit.

MANAGEMENT DISCUSSION & ANALYSIS
Overview of Group’s Business and Operations
Revenue (RM’000) Net Loss (RM’000) Return on Total Assets (%)

FY2018 FY2018 FY2018
4,571,376 (301,482) (6.9)

FY2017 4,578,674 FY2017 98,886 FY2017 2.1
EBITDAR (RM’000) Total Assets (RM’000) Return on Shareholders’ Equity (%)
FY2018 FY2018 FY2018
821,977 4,341,571 (52.4)

FY2017 1,166,509 FY2017 4,764,180 FY2017 10.0
Review of Financial Results and Financial Condition
AirAsia X Group reported a relatively flat year-on-year (YoY) revenue of

RM4.6 billion, while operating expenses increased 5.9% YoY, mainly due
to significantly higher aircraft fuel expenses and provision for impairment
on amount due from a joint venture. This led the Company to record a net
operating loss (NOL) of RM218.8 million against a profit of RM84.6 million in
2017. Excluding the provision for doubtful debts, our normalised NOL was a Loss Before Tax
lot narrower at RM68.9 million.
(RM226.7)
AirAsia X Group reported a loss before tax (LBT) of RM226.7 million for the
financial year ended 31 December 2018, while loss after tax (LAT) stood at
million
RM301.5 million, against a profit after tax (PAT) of RM98.9 million in FY2017.
Group Earnings
Revenue
The Group achieved a relatively flat YoY turnover of
RM4.6 billion.
Aircraft operating Other operating

RM944.6 RM898.7 RM413.8 RM464.4
lease expenses million million expenses million million
decreased 2017 2018 increased 2017 2018
4.9% 12.2%
DEPRECIATION
Maintenance and
Depreciation expenses
overhaul expenses RM652.9 RM485.4 RM109.3 RM127.3
increased by million million
decreased million million
2017 2018
2017 2018 16.5%
25.7%
Scheduled flights revenue remained largely unchanged at
RM2.94 billion. This was on the back of 6% YoY growth in
Aircraft fuel
RM1.47 RM1.88 number of passengers carried from 5,837,530 passengers
expenses billion billion in 2017 to 6,167,465 passengers in 2018. Passenger growth
increased 2017 2018 was in line with 7% increase in seat capacity which grew
27.9% from 7,152,067 seats in 2017 to 7,622,940 seats in 2018. This
resulted in a slightly lower load factor for the year at 81% as
compared to 82% in 2017, and 5% lower average base fare
at RM477.

The Digital Airline
Our passenger load factor (PLF) on several routes to Japan and Indonesia was also impacted by natural disasters. In addition
the load factor for Kathmandu route was significantly impacted by a gradual route termination begining 3Q18 as well as
the Nepalese Government’s ban on workers going to Malaysia. The drop in load factor was also partly due to the additional
frequencies introduced during the year. Frequencies to Honolulu, Hangzhou, Sapporo, Busan and Taipei were increased as the
Company seized the opportunity to invest substantial capacity to strengthen our leadership position in core markets while
realigning routes to fully optimise our network. All of these factors however contributed to a decrease in RASK.
Throughout 2018, AirAsia X Malaysia optimised its route network by terminating non-core routes, redeploying capacity to
new destinations and increasing frequencies on core routes. These initiatives have set the platform for the Group to build and
capitalise on a tighter network, leveraging the strengths of both the Malaysian and Thai hubs to drive up frequency into core
routes and complement the Group’s market leadership strategy.
Ancillary revenue was relatively flat YoY at RM854.2 million as compared to RM847.2 million in 2017. On the other hand, average
revenue per passenger dropped 5.4% YoY to RM477 against RM504 in 2017, on the back of shorter stage length routes as well
as promo fares on four new destinations introduced during the year.
In line with the Group’s decision to reduce charter activities in recent years, revenue from charter flights decreased further to
RM136.4 million, down 17.5% YoY, as compared to RM165.3 million in 2017.
Revenue from freight services increased by 7.0% YoY from RM171.0 million in 2017 to RM183.0 million, mainly attributed to
higher tonnage transported in 2018.
Aircraft operating lease income remained largely unchanged at RM452.9 million in 2018, versus RM452.7 million in 2017.
Expenditures
Aircraft fuel expenses increased 27.9% from RM1.47 billion
in 2017 to RM1.88 billion in 2018. This was mainly due to the Profit & Loss FY2018 FY2017 YoY
Summary RM million RM million %
significant increase in average fuel price by 35% from USD66
per barrel in 2017 to USD89 per barrel in 2018, in addition to
the 1% increase in fuel consumption from 5,145,455 barrels Revenue 4,571.4 4,578.7 (0.2)
in 2017 to 5,223,409 barrels in 2018 as a result of 7% YoY
increase in number of sections flown. Total operating
4,782.7 4,517.1 5.9
expenses
Aircraft operating lease dropped by 4.9% from RM944.6
million in 2017 to RM898.7 million, due to a stronger Malaysian EBITDAR 822.0 1,166.5 (29.5)
Ringgit against the US Dollar during the year.
Operating profit /
(203.9) 112.6 (>100)
On the back of a credit note from an engine supplier (loss)
and overprovision for prior year maintenance expenses,
Net operating profit
maintenance and overhaul expenses dropped 25.7% from (218.8) 84.6 (>100)
/ (loss)
RM652.9 million in 2017 to RM485.4 million in 2018.
Profit / (loss)
(226.7) 186.8 (>100)
Depreciation of property, plant and equipment increased by before tax
16.5% from RM109.3 million in 2017 to RM127.3 million, mainly
attributed to the capitalisation of eight engines during the Taxation 74.8 87.9 (14.9)
year.
Profit / (loss) after
Other operating expenses increased by 12.2% from RM413.8 (301.5) 98.9 (>100)
tax
million in 2017 to RM464.4 million mainly due to the increase
in provision for doubtful debts. Basic EPS (sen) (7.3) 2.4 (>100)

CHARTER FLIGHTS
1
RM2.940 RM2.942
Scheduled flights billion billion Revenue from charter
revenue RM165.3 RM136.4
2017 2018 flights decreased by million million
2017 2018
17.5%
2 Ancillary revenue increased Ancillary revenue in alignment with the Group’s decision to reduce charter activities
slightly to RM854.2 million increased by FREIGHT SERVICE
as compared to RM847.2
million in 2017. 0.8% 3 Freight service RM171.0 RM183.0
million million
RM847.2 RM854.2 revenue increased by
million million 2017 2018
2017 2018 7%
due to higher tonnage transported in the current period
Aircraft operating lease income remained relatively unchanged

at RM452.9 million in 2018, versus RM452.7 million in 2017
Group Financial Position

As at 31 December 2018, the Group’s net gearing increased from 0.43x in 2017 to 0.68x on the back of lower cash balances,
despite lower debt.
Below are key highlights of our Group Balance Sheet:
Total equity Total assets Total liabilities

decreased by RM414.9 million mainly decreased RM422.6 million driven by: stood at RM3.8 billion, an increase
due to: • Provision for doubtful debts by RM7.7 million from 2017 on the
• Increase in fuel hedging reserve on Indonesian joint venture of back of:
from RM0.8 million in 2017 to RM161.7 million • Increase in provision for aircraft
RM99.2 million in 2018 • Reduction in cash balance maintenance (RM1.0 billion in
• Net loss during the year 2018 vs RM0.79 billion in 2017)
• Recognition of derivative
financial liabilities in 2018 of
RM130.5 million
Capital Structure and Capital Resources

Cash in-flow from operations stood at RM97.9 million, against RM291.4
million in the previous year. The Group’s borrowings has reduced by 20.3% Group net gearing increased from
to close at RM687.1 million as at 31 December 2018 arising from loan
repayments during the year and foreign exchange translation. However, 0.43x 0.68x
against the backdrop of a challenging macroeconomic environment, cash 2018
balance dropped 31.2% YoY to RM297.6 million, effectively increasing the
Group’s net gearing from 0.43x to 0.68x in 2018.
Given the economic and currency exposures, the Group is committed to

undertaking various initiatives which include hedging and paring down our
gearing to a more comfortable level. We remain prudent in maintaining
a sound financial position that enables the execution of our strategic
objectives in creating value over the coming years.

The Digital Airline
Review of Operating Activities
As per our quarterly Bursa Announcement, the Group’s reportable operating segments have been identified as each
company with an Air Operator Certificate (AOC) held under the AirAsia brand, namely Malaysia, Thailand and Indonesia.
AirAsia X Malaysia AirAsia X Thailand AirAsia X Indonesia
Malaysia continues to be the Following a successful Indonesia went through a

biggest revenue generator at 2017, Thailand continued its very challenging operational
RM4.6 billion before elimination momentum in 2018 with a record environment, primarily due to
adjustments in FY2018. Revenue profit before tax of RM65.3 the series of natural disasters
for Malaysia was flat YoY as the million as compared to RM38.9 that occurred in proximity to Bali
Company moved away from million in 2017. This was largely in 2018. Despite that, segment
longer-haul routes such as Tehran due to significantly improved revenue improved by 13.3% to
and Kathmandu, replacing these segment revenue, which was up RM265.6 million. However, on
with shorter stage length routes 32.0% to RM1.5 billion recorded the back of higher operating
which resulted in lower average in 2018. Thailand added three cost faced in 2018, loss before
fare. Number of aircraft increased Airbus A330 throughout 2018, tax widened to RM72.4 million.
to 24 Airbus A330. bringing its total fleet to nine Following thorough evaluation,
Airbus A330 at the end of the Indonesia will operate on a non-
year. scheduled commercial airline
basis following the Company’s
last scheduled flight from Bali to
Tokyo (Narita) in January 2019.
Segmental Performance Review
FY2018 FY2017 YoY Profit Before Tax

Revenue FY2018 FY2017 YoY
RM’000 RM’000 % (PBT)/(Loss) Before
RM’000 RM’000 %
Tax (LBT)
Malaysia 4,571,376 4,578,674 (0.2)
Malaysia (226,661) 186,804 (>100)
Thailand 1,523,905 1,154,285 32.0
Thailand 65,287 38,869 68.0
Indonesia 265,573 234,371 13.3
Indonesia (72,364) (54,209) (33.5)
Elimination
(452,916) (452,727) 0.0
adjustment Total (233,738) 171,464 (>100)
Total 5,907,938 5,514,603 7.1
FY2018 FY2017 YoY

EBITDAR/(LBITDAR)1
RM’000 RM’000 %
Malaysia 821,977 1,166,509 (29.5)
Thailand 324,083 304,012 6.6
Indonesia (14,619) 23,716 (>100)
Elimination
(271,633) (304,508) 10.8
adjustment
Total 859,808 1,189,729 (27.7)
1 EBITDAR/(LBITDAR) represents earnings/ (loss) before finance cost,

taxation, depreciation, amortisation, and aircraft rental expenses

OUTLOOK & ACKNOWLEDGEMENTS
The Company is also investing in digital

technology as WE seek to reduce the impact
OF oil price fluctuation on the Company’s
bottom line.
AirAsia X sees the current market environment as an together with our sister airlines under the AirAsia Group
opportunity to build and strengthen our network and umbrella, has been at the forefront of digital innovation in
customer experience for the long term. AirAsia X Malaysia will the airline industry with digitalisation forming a core part of a
not be bringing in any aircraft in 2019 but will instead ensure wider customer strategy. Our digital capability helps to build
optimal route performance as we continue to build our key stronger customer loyalty, drives revenue growth, secures
markets, especially China and Japan – China for the reasons cost savings and delivers greater customer satisfaction.
already mentioned; Japan because, among others, it will be Increasingly sophisticated use of data will enable us to make
hosting the 2020 Olympics and we definitely want to be a travel more seamless for our customers in the long term.
part of that.
I am very excited about Nadda’s appointment as Group CEO.
Guest service is going to be a key focus area. AirAsia X prides We have worked closely as the respective CEOs of AirAsia X
itself on making travel easy, enjoyable and affordable for Malaysia and Thailand and have discovered many similarities
our guests whether it is for business or leisure – seamlessly in our business approach and vision. Given his track record
connecting Asia Pacific with the warmest welcome in the sky. at AirAsia X Thailand, we can expect some amazing things
We aim to up the ante, in the belief that our guests would from him. Although Tan Sri Tony and Datuk Kamarudin are no
appreciate certain luxuries to make their long-haul flights longer our co-Group CEOs, they are still very much part of
more comfortable. The menu upgrade introduced in 2018 the Group’s onward journey as Directors of AirAsia X. I would
has led to greater uptake of pre-booked food. For better like to thank them, for guiding us over the years, through the
entertainment and connectivity, we will be rolling out ROKKI, many ups and downs.
AirAsia’s brand of wifi and entertainment. There are many more
digital offerings being developed by AirAsia, both inflight and Most of all, I would like to say a big thank you to our Allstars.
on-ground, that we can leverage to make AirAsia X an even We have been though a rollercoaster journey these last 11
more attractive proposition to travellers. years. I do sincerely believe, now, we have smoothened the
course, ironing out some kinks that made for a bumpy ride.
The Company is also investing in digital technology as we That’s not to say the going will be easy. There will still be
seek to reduce the impact of oil price fluctuation on our challenges; there always will be. But we have proven our
bottom line. I believe AirAsia’s digital businesses, under resilience. We have proven our dedication. And we have
RedBeat Ventures, are going to add another very exciting proven that, working together, there is almost nothing that we
dimension to the entire One AirAsia group. AirAsia X, cannot overcome.
To everyone, once again, thank you.
Benyamin Ismail
Chief Executive Officer
AirAsia X Berhad

ENDLESS
POSSIBILITIES
Avolon and AirAsia X – Proud Partners

avolon.aero
The Digital Airline
AIRCRAFT CONFIGURATION
MANAGEMENT
model
I NNOVATIVE FUEL
• High seat density
Aircraft weight optimisation:
377 seats
per aircraft (12% more than • Inflight service and meal
manufacturer’s configuration) inventory PEOPLE
• No heavy wiring for inflight

• Two-class – 12 Premium entertainment equipment
Class Seats (flat beds) &
365 Economy Class Seats • Customised water levels and
on all aircraft monitoring • No UNIONS
• High productivity
YOUNG & EFFICIENT • Paperless cockpit (in progress)
– multi-tasking,
AIRCRAFT TYPE interchangeable roles
Flight operations optimisation: • Highly experienced, hands-
on management team
Fuel- Fuel Pilot flying

• Average aircraft age of eight years efficient tankering techniques
• All Airbus A330 (2015 onwards) speeds and
• Aircraft can be interchanged monitoring
• Long-term engine programme

ECONOMIES OF SCALE ATTRACTIVE FARES
– PROVIDE GOOD COST-SAVINGS
HIGH AIRCRAFT
• Discount on aircraft and engine
UTILISATION AND
purchase
OPERATIONAL
EXCELLENCE • Manpower merger with AirAsia • Fares at least
Group 30% lower than
full-service carriers
• Fleet flexibility due to good
relationship with Airbus
• Aircraft utilisation of up to 16 hours
per day • Leverage on AirAsia brand,
technology infrastructure and
• 75-90 minutes turnaround time
network
LOW DISTRIBUTION COST • Strong bargaining power

with vendors
• Fuel contracts negotiated

• More than 75% sales
together with AirAsia Group
via Internet
for better pricing

The Digital Airline
Five-Year Financial &

Operational Highlights
2014 2015 2016 2017 2018
(restated) (restated)
Income Statement (in RM’mil)
Revenue 2,937 3,151 3,901 4,579 4,571
Total operating expenses 3,304 3,217 3,850 4,517 4,783
EBITDAR 342 902 1,067 1,167 822
EBITDA 5 196 221 222 (77)
EBIT/(LBIT) (176) 51 107 113 (204)
Net operating profit/(loss) (329) (13) 82 85 (219)
Profit/(Loss) before tax (605) (341) 82 187 (227)
Net profit/(loss) (519) (244) 45 99 (301)
Balance Sheet (in RM'mil)
Deposits, cash and bank balances 127 311 422 433 298
Total assets 3,736 4,250 4,672 4,764 4,342
Net debt (total debt - total cash) 1,452 1,118 738 429 389
Shareholders' equity 704 737 997 989 574
Cash flow statement (in RM'mil)
Net cash generated from/(used in) operating activities (53) (13) 387 291 98
Net cash generated from/(used in) investing activities 392 297 (20) (22) (9)
Net cash generated from/(used in) financing activities (483) (114) (239) (238) (219)
Net cash flow (143) 170 128 31 (131)
Consolidated financial performance (%)
Return on total assets (13.9) (5.7) 1.0 2.1 (6.9)
Return on shareholders' equity (73.8) (33.1) 4.5 10.0 (52.4)
ROCE (EBIT/(net debt + equity)) (8.2) 2.8 6.2 8.0 (21.2)
EBITDAR margin 11.6 28.6 27.3 25.5 18.0
EBITDA margin 0 6.2 5.7 4.8 (1.7)
EBIT/(LBIT) margin (6) 1.6 2.7 2.5 (4.5)
Profit/(Loss) before tax margin (20.6) (10.8) 2.1 4.1 (5.0)
Net Profit/(Loss) margin (17.7) (7.7) 1.1 2.2 (6.6)
Consolidated operating statistics
Passenger carried 4,230,952 3,613,537 4,688,077 5,837,530 6,167,465
Capacity 5,150,574 4,848,974 5,935,111 7,152,067 7,622,940
Load factor (%) 82 75 79 82 81
RPK (million) 20,817 17,552 23,188 28,578 29,111
ASK (million) 25,374 23,388 29,343 35,054 36,047
Aircraft utilisation (hours per day) 12.6 14.1 13.5 15.4 15.7
Average fare (RM) 469 490 518 504 477
Ancillary revenue per pax (RM) 167 164 167 175 169
Revenue per ASK (sen) 11.97 13.50 13.32 13.07 12.69
Revenue per ASK (USc) 3.66 3.46 3.22 3.22 3.06
Cost per ASK (sen) 12.91 13.75 13.12 12.89 13.27
Cost per ASK (USc) 3.94 3.53 3.17 3.17 3.20
Cost per ASK – excluding fuel (sen) 6.92 9.38 9.32 8.70 8.06
Cost per ASK – excluding fuel (USc) 2.11 2.40 2.25 2.14 1.95
Size of fleet at year end 26 27 30 30 35
Average stage length (km) 4,927 4,761 4,944 4,901 4,729
Sectors flown 13,662 13,033 15,743 18,971 20,220
Fuel consumed (‘000 bbl) 3,657 3456 4,418 5,145 5,223
Average fuel price 127 76 61 66 89
Number of employees at year end for MAAX 2,380 2,204 2,621 2,326 2,427

Key Performance Indicators 20
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The Digital Airline
Simplified Group Statement of

Financial Position & Segmental Analysis
TOTAL ASSETS
23% 14%
9%
2%1%
2%
33%
9%
2017 2018
7%
2%
1%
9%
43%
44%
Non-current assets held for sale Amount due from an associate Inventories
Deposits, cash and bank balances Amount due from a joint venture Deferred tax assets
Tax recoverable Amount due from related parties Property, plant and equipment
Derivative financial instruments Receivables and prepayments
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY
23%
17% 35%
3% 1% 32% 2%
2017 2018 1%
26% 1% 27%
(13%)
(21%)
15% 18%
(2%)
16%
3% 16%
Provision for aircraft maintenance Sales in advance Accumulated losses

Amount due to related parties Derivative financial liabilities Currency translation reserve
Amount due to a joint venture Borrowings Warrant reserve

Provision for taxation Other reserves Share capital
Trade and other payables

REVENUE
Malaysia
77% 2018
2017
76%
Thailand
26%
Indonesia 20%
5%
4%
adjustment
Elimination
(8%)
(8%)
EBITDAR / (LBITDAR)1
Malaysia
96% 2018
2017
98%
Thailand
38%
26%
Elimination Indonesia
(2%)
2%
adjustment
(32%)
(26%)
1
EBITDAR / (LBITDAR) represents earnings/(loss) before finance cost, taxation, depreciation, amortisation and aircraft rental expenses
PROFIT BEFORE TAX (PBT) / (LOSS BEFORE TAX) (LBT)
2018
(97%)
Malaysia
2017
109%
28%
Thailand
23%
Indonesia
(31%)
(32%)

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are always the Best4You.
Group Quarterly Financial
Performance
2018
Q1 Q2 Q3 Q4
PnL (RM’mil)
Revenue 1,265 1,054 1,077 1,175
EBITDAR 305 146 70 301
Operating Profit/(Loss) 61 (96) (202) 33
Net Operating Profit/(Loss) 58 (99) (205) 27
Profit/(Loss) Before Tax 55 (65) (248) 31
Taxation (14) 7 50 (117)
Profit/(Loss) After Tax 41 (58) (198) (86)
Basic EPS (sen) 1.0 (1.4) (4.8) (2.1)
Balance Sheet (RM’mil)
Deposit, Cash and Balances 468 338 266 298
Total Assets 4,687 4,620 4,468 4,342
Total Borrowings 775 764 735 687
Shareholders' Equity 1,029 958 774 574
Net Debt 307 426 469 389
Net Gearing (x) 0.30 0.44 0.61 0.68

The Digital Airline
Investor Relations
AirAsia X recognises that, as a responsible organisation, we INVESTOR MEETINGS, ROADSHOWS & CONFERENCES
have a duty to maintain an open and honest relationship with
During the year under review, the CEO and Investor Relations
our shareholders and the investment community at large. We
team continued their regular engagements by way of one-
further strengthen our standing in the marketplace by placing
on-one meetings, conference calls, investment conferences
top priority on serving our guests, anticipating their needs
and non-deal roadshow (NDRs) with analysts, fund managers,
and going one step beyond to ensure they have the best
institutional shareholders and other stakeholders. AirAsia X
possible experience at every stage of their interaction with us.
reached out to a wider investor audience internationally by
participating in six roadshows, conferences and corporate
We continued to improve the quality of our disclosures during
days in the United Kingdom, Hong Kong, Taiwan, Thailand and
the year to address rising demand from the investment
Singapore.
community for more detailed and specific information as a
result of the more challenging economic landscape. Effective
Locally, AirAsia X also participated in small group meetings
teamwork between the Investor Relations team and various
as well as large group presentations organised by local and
information providers and leaders within AirAsia X allowed
foreign research houses. We met more than 100 analysts and
us to provide the necessary information to better serve our
fund managers throughout 2018. We continued to uphold
stakeholders’ needs.
best practices in terms of providing as much disclosure as
possible and sufficient guidance on the Group’s strategies
To ensure that the investment community is kept abreast of
in all segments, markets and financial performance. Among
our strategies, performance and key business activities, we
efforts to uphold best practices is to update both the
continuously engage with our investors through a planned
domestic buy- and sell-side in pre-closed period meetings
investor relations programme. In 2018, AirAsia X Investor
every quarter to ensure that the investment community is
Relations continued its strategy of diversifying its shareholder
kept abreast of latest developments. Management shared
base by targeting more emerging market funds preferably
the Group’s strategy and financial performance and received
with an Asian and/or Asean focus, and long-term funds
valuable feedback from both current and prospective
focused on the aviation sector. We also target prospective
shareholders.
investors with exposure in our peers as well as fixed-income
investors.
Subsequent to the release of our quarterly earnings disclosures to Bursa Securities, briefings are
ANALYST held for analysts and fund managers/investors via teleconferencing. These sessions are chaired
BRIEFINGS FOR by the Group CEO who is accompanied by the CEO, CFO and the Investor Relations team. To
QUARTERLY ensure that investors and analysts are provided with comprehensive and equal access to the
RESULTS results announcements, we provide a briefing pack which is emailed to our distribution list and
ANNOUNCEMENTS is made available on the corporate website immediately after the announcement is made to
Bursa Malaysia. The briefing pack includes the financial statements to the exchange, an analyst
presentation and a press release.
ANNUAL GENERAL MEETING ANALYST COVERAGE

AirAsia X remains a well-covered stock amongst the investment
community with 11 analysts and research houses maintaining
core coverage on the stock as at end December 2018.
No Research House Analyst
1 Nomura Ahmad Maghfur
2 KAF Max Koh
3 Citi Kaseedit Choonnawat
4 Public Invest Nur Farah Syifaa' Mohamad Fu'ad
5 CIMB Raymond Yap
6 Maybank Mohshin Aziz
7 Macquarie Ben Shane Lim
8 Alliance DBS Ruzanna Faruk

AirAsia X’s 12th Annual General Meeting (AGM) was held
on 4 June 2018 in Sepang, Malaysia. During the AGM, 9 MIDF Adam Rahim
shareholders were able to raise questions and provide
10 Affin Hwang Isaac Chow
feedback to the Board and Leadership team. All the
proposed resolutions were duly passed by the shareholders. 11 RHB Alan Lim

Investor Relations Website
AirAsia X’s corporate website at www.airasiax.com continued to be an important channel for
disseminating investor information and receiving queries and feedback, both locally and overseas.
The website contains the Group’s annual reports, financial results, investor presentations, capital
structure information, press releases and disclosures to Bursa Securities. The Investor Relations
team continued to ensure that the website remained up-to-date with the latest investor-related
Group disclosures.
SHAREHOLDER BASE
AirAsia X has a diversified shareholder base with 42,485 institutional and private/retail shareholders across the globe as at
31 December 2018. Our substantial shareholders are Tune Group Sdn Bhd – 17.83%, and AirAsia Group Berhad – 13.76% which
together account for 31.59% holding of the Group. Meanwhile, our foreign shareholding as at 31 December 2018 stood at 9.62%.
The concerted efforts carried out by Investor Relations department to effectively communicate and
AWARDS AND engage with the Investment Community were recognised with the achievement of various awards
RECOGNITION and recognition as follows:
Awards/Recognition Venue Recognition Body
Investor Relations:
• Best Company for Investor Relations Kuala Malaysian Investor

(Small Cap) Lumpur, Relations Association
• Best Investor Relations Website Malaysia (MIRA) Awards 2018
(Small Cap)
• Best Investor Relations Professional
(Small Cap) - Hanif Idrose
• Certificate for Excellence in Investor Singapore IR Magazine Forum &

Relations Awards – South East Asia
2018
Annual Report:
• Gold - Non-Traditional Annual Hamburg, 32nd Annual International

Report: Airlines Germany Annual Report Competition
• Gold - Interior Design: Airlines (ARC) Awards
• Gold - Cover Photo/Design: Airlines
• Gold - Infographics: Airlines
• Silver - Printing & Production:
Airlines
• Gold - Integrated Presentation: London, International Annual Report

Airlines United Design Awards 2018
• Gold - Interior Design: Airlines Kingdom
• Gold - Photography: Airlines
• Silver - Infographics: Airlines
• Silver - Printing & Production:
Airlines
• Silver - Typography: Airlines
FEEDBACK To further enhance our Investor Relations function, we seek

constructive ideas through on-going engagement with
AirAsia X highly values feedback from the investing
stakeholders as well as provide an avenue through which they
community. This helps to ensure that we constantly meet
may communicate with the team at
their requirements while further improving our relationship
with this stakeholder group through direct communication.
aax_ir@airasia.com

The Digital Airline
Investor Relations
INVESTOR RELATIONS EVENTS
Month Date Details Venue Type
January 25 January 2018 KAF Corporate Day Kuala Lumpur, Corporate Day
Malaysia
February 5 February 2018 Non-Deal Roadshow in Taipei- MIDF Taipei, Taiwan Non-Deal Roadshow
21 February 2018 Announcement of the unaudited results Sepang, Malaysia Analysts' Briefing
for 4Q17
27 February 2018 Wealth Academy Investor Inner Circle Club Kuala Lumpur, Presentation
Malaysia
March 26 March 2018 RHB Corporate Digest Luncheon Kuala Lumpur, Analysts' Briefing
Malaysia
May 22 May 2018 Announcement of the unaudited results Sepang, Malaysia Analysts' Briefing
for 1Q18
23 May 2018 Bloomberg TV - Interview with Mr Kuala Lumpur, Interview

Benyamin Ismail Malaysia
June 4 June 2018 12th Annual General Meeting Sepang, Malaysia AGM
26-27 June 2018 Citi ASEAN C-Suite Investor Conference Singapore Conference
2018
28 June 2018 MIRA Dialogue Session: Communicating Kuala Lumpur, Dialogue

What Analysts Want Malaysia
July 2 July 2018 The 22nd ATRS World Conference Seoul, South Korea Conference
11 July 2018 Goldman Sachs Aviation Summer Series: Kuala Lumpur, Conference
"Long-haul/Low-cost Carriers" Malaysia
26 July 2018 Citi Malaysia C-Suite Investor Corporate Kuala Lumpur, Conference
Day 2018 Malaysia
August 30 August 2018 Announcement of the unaudited results Sepang, Malaysia Analysts' Briefing
for 2Q18
September 18 September 2018 MIRA Workshop: Storytelling Techniques in Kuala Lumpur, Workshop
Investor Relations Malaysia
26 September 2018 Non-Deal Roadshow in Bangkok Bangkok, Thailand Non-Deal Roadshow
27-28 September 2018 Non-Deal Roadshow in London London, United Non-Deal Roadshow
Kingdom
October 10-11 October 2018 Avalon: International Leasing School Dublin, Ireland Conference
18 October 2018 MIRA Workshop: Shape Analysts' Kuala Lumpur, Workshop

Expectations Malaysia
30-31 October 2018 Airline Economics Growth Frontiers Hong Hong Kong Conference
Kong 2018
31 October 2018 AirFinance Journal Asia Pacific 2018 Hong Kong Conference
November 1 November 2018 AirFinance Journal Asia Pacific 2018 Hong Kong Conference
21 November 2018 Announcement of the unaudited results Sepang, Malaysia Analysts' Briefing
for 3Q18
December 5 December 2018 MIRA Investor Relations Awards 2018 Kuala Lumpur, Awards Ceremony - AirAsia X
Malaysia won Best Company, Best Investor
Relations Website and Best IR
Professional (Hanif Idrose)

Share Price Performance
‘000 RM
1,200,000 0.5
0.44
0.45
1,000,000
0.4
800,000 0.35
0.3
600,000 0.21 0.25
0.2
400,000
0.15
0.1
200,000
0.05
0 0.0
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Total Volume Traded for the month Highest Price for the month Lowest Price for the month
2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Volume (’000) 916,050 1,001,903 555,445 408,035 358,329 210,989 298,943 200,103 295,126 216,311 457,515 239,322
Highest (RM) 0.435 0.44 0.43 0.4 0.39 0.375 0.38 0.375 0.315 0.285 0.26 0.24
Lowest (RM) 0.33 0.385 0.38 0.345 0.36 0.34 0.335 0.335 0.28 0.23 0.21 0.22
No. of Shareholders since IPO Foreign Shareholding (%)

2013 29,481 2013 10.66
2014 33,272 2014 16.77
2015 36,525 2015 9.52

2016 37,142 2016 15.47
2017 40,626 2017 12.32
2018 42,485 2018 9.62
Bumiputera
37.85%
Individuals
34.51%
Based on Based on Non-Bumiputera
52.53%
31 December
2018 information
Others
65.49% 31 December
2018 information Foreign
9.62%
Bumiputera shareholdings include shares held through institution channelling funds of individual Bumiputera and trust
agencies, such as Lembaga Tabung Haji, Permodalan Nasional Berhad and State Economic Development Corporations. For
purposes of this submission, shares held by Khazanah Nasional Berhad, Minister of Finance Incorp, Bank Negara Malaysia,
Employees Provident Fund Board, Kumpulan Wang Simpanan Pekerja and Kumpulan Wang Amanah Pencen should be
classified under the non-Bumiputera column.

The Digital Airline
Market Capitalisation
RM billion RM
3.0 1.2
2.5 1.0
2.0 0.8
1.5 0.6
1.0 0.4
0.5 0.2
0.0 0.0
2013 2014 2015 2016 2017 2018
Closing Share Price Market Capitalisation
Year Closing Share Price Market Capitalisation
2013 RM1.03 RM2.44 billion
Ordinary Shares Warrants

Highest Price 0.44 (23 February 2018) Highest Price 0.21 (26 January 2018)
(29 & 30 November (20 & 31 December

Lowest Price 0.21 2018)
Lowest Price 0.045 2018)
Average Trading Volume Listing Date
430 million 11 June 2015

No. of Outstanding Shares Maturity Date
4,148,148,552 8 June 2020

Market Capitalisation Issue Size
RM0.98 billion 889 million

Exercise Price
RM0.46

The Digital Airline
AirAsia X Thailand:
Master of Japan network
For two years from 2015, when the These attractions are not lost on In 2019, AirAsia X Thailand’s expansion
International Civil Aviation Organization Thais, who have also shown very plans will receive another boost, in
(ICAO) imposed a blanket foreign strong interest in exploring its eastern the form of the five more aircraft,
expansion ban on all Thai airlines, our neighbour. Japan is the third most among which two will be the fuel-
associate was also affected. Immediately visited country among Thais, after efficient Airbus A330neo. These create
after this ban was lifted in 2017, AirAsia Malaysia and Laos, countries with the possibility of some very exciting
X Thailand set about increasing its which Thailand shares borders. With new destinations, with our associate
frequency to popular routes – Osaka the addition of Nagoya and Sapporo, looking at both Europe and Australia.
and Seoul. New routes were out of and the increased frequencies, AirAsia While tapping into these new regions,
the question because of insufficient X Thailand now flies 21 times weekly to however, it will not stop deepening its
physical capacity. This changed in 2018, Tokyo, 14 times weekly to Osaka, and network in its core North Asian market.
when AirAsia X Thailand received three 7 times weekly to both Sapporo and During the year, it had entered into a
new aircraft. Armed with the seats Nagoya, commanding around 30% of partnership with L.POINT, an integrated
to support growth, it embarked on a the air travel market to Japan on Thai membership service by Lotte, a well-
new expansionary phase that is set to airlines, earning its moniker Master of known conglomerate. This will help to
continue. Japan network. enhance its visibility in South Korea,
providing the right kind of foundation to
On 10 April, it inaugurated its first At the same time, Thailand is a popular further grow its presence in the country
(daily) flight from Bangkok to Sapporo, tourist destination for the Japanese. which it currently serves through three
equally famous for its beer as for its During the year, while the number of flights a day to Seoul.
mountains and winter sports. This inbound tourists from China dropped,
was followed, on 30 October, by the that from Japan increased 7%, followed On safety standards, during the year,
inaugural flight to Nagoya, the fourth by from Korea with 5% growth. Our AirAsia X Thailand launched a Safety
most populous city in Japan and home associate can therefore be assured of beyond Compliance Project so as to
to industrial names such as Toyota strong loads both to and from the Land achieve the highest safety standards
and Noritake. Further enhancing its of the Rising Sun. based on European Aviation Safety
country dominance, it also increased Agency (EASA) and the Civil Aviation
the frequency of flights to Tokyo Along with its 32% increased capacity, Safety Authority (CASA) regulations.
(Narita) and Osaka from 14 and 7 flights as measured by available seat kilometre Within a year, AirAsia X Thailand has
a week to 21 and 14 flights per week, (ASK), AirAsia X Thailand was able been authorised by EASA and CASA,
respectively. to maintain a high load factor of 89%, and certified by the International
and grow the number of guests flown Organization for Standardization (ISO)
The increased capacity to Japan was for the year by an impressive 24% and the IATA Operational Safety Audit
not incidental. It was based on a well to 2.01 million. Meanwhile, efficient (IOSA). These ensure compliance with
thought out strategy that our AOC management of its aircraft led to a the most up-to-date global regulations
aptly called ‘Master of Japan network’. better utilisation rate of 13.9 hours, a and standards.
Japan is the decade’s fastest growing significant 1.6 hours higher than in 2017.
tourist destination, with overseas AirAsia X Thailand has set itself the
arrivals increasing 334% since 2010.1 These strong operational figures were challenge of increasing the number of
The number moreover is set to increase reflected in our associate achieving its guests carried by 50% in 2019. With
exponentially this and next year given best financial results since becoming an expanded fleet, a determined team
that the nation will be hosting the operational in 2014, with net profit and increasingly strong reputation, we
2019 Rugby World Cup and the 2020 surging 67% year-on-year from THB310 feel quite certain that the target will be
Olympic Games. Travel pundits are million to THB517 million on the back of achieved.
calling Japan the new destination a 31% increase in revenue from THB9.11 1 According to the UN’s World Tourism
waiting to be explored – a land both billion to THB11.95 billion. Organization (UNWTO), as reported in a
exotic and enticing, with culturally Telegraph UK article, https://www.telegraph.
steeped experiences few other co.uk/travel/destinations/asia/japan/articles/
japan-fastest-growing-travel-destination/
countries can offer.

AirAsia X Indonesia:
Ceased ScheduleD Flight Operations
Our associate in Indonesia is perhaps a good example of a great product in the

wrong place and time. Since it was set up in 2014, it has faced a series of obstacles
preventing it from truly taking off. These have included delays in flight approvals,
regulatory restrictions as well as, in 2018, a difficult business environment with an
increasing cost of fuel and depreciating Indonesian Rupiah.
Most significantly, in the last couple of years, it has been besieged by natural
disasters – many in the vicinity of Bali where AirAsia X Indonesia’s operations are
based. Since September 2017, Mt Agung has been spewing and erupting, at certain
points forcing the closure of Ngurah Rai International Airport in Denpasar, Bali.
Added to this, in 2018 earthquakes and tsunamis wreaked havoc in various popular
island destinations especially in the second half the year, once again quelling tourist
numbers.
According to the Central Statistics Agency, foreign tourist arrivals to Indonesia

totalled 15.8 million in 2018, well short of the 17 million that the Ministry of Tourism
had targeted.
The drop in tourist confidence led to our associate terminating the Bali – Mumbai
route it had launched in May 2017. A dual hub strategy was initiated in an attempt
to capture a larger base of inbound and outbound travellers, by also operating out
of the Soekarno-Hatta International Airport in Jakarta with the launch of a new
According to the Central route from Jakarta to Tokyo (Narita) in May 2018. Then came the avalanche of
natural disasters, and termination of this route just five months later, in October. Our
Statistics Agency, foreign associate was left operating just a single route, from Bali to Tokyo (Narita).
tourist arrivals to When our associate reported its losses in the third quarter of the year, it also
announced the management’s tough but strategic decision to terminate its daily
Indonesia totalled flights to Japan in January 2019 upon which the airline would operate only non-
scheduled commercial flights. The last flight on this route was on 15 January 2019.
14.9 million in 2018,
Despite the turn of events in 2018, AirAsia X Indonesia performed commendably in
well short of the 17 terms of operational parameters. Compared to year 2017 (when it was functional
only from May till year-end), its capacity, as measured by available seat kilometre,
million that the Ministry grew 44%. Along with a seven percentage point increase in load factor to 76%, the
number of guests flown increased by 32% to 416,000. This, together with more
of Tourism had targeted. efficient aircraft utilisation of 12.3 hours a day as compared to 10.4 hours in 2017,
contributed to a 21% increase in revenue to USD65.8 million.
Today, our associate looks forward to its journey as a charter flight operator. It has
been analysing the market and sees great potential in the Hajj and Umrah sectors,
which it might start serving some time in the second quarter of this year.

milesto
The Digital Airline
2007
05 JANUARY
Tan Sri Tony Fernandes
and Datuk Kamarudin bin
2008
04 FEBRUARY 2009
Meranun announce the
launch of AirAsia X. The Kuala Lumpur –
13 JANUARY 16 JUNE
Hangzhou, China route is
launched. The Supersize baggage AirAsia X orders 10 Airbus
14 JUNE
policy is introduced. A350-900 aircraft with an
AirAsia X places an order for option for another five.
13 MARCH
15 Airbus A330-300 aircraft. 17 FEBRUARY
More than 100,000 seats
Passengers can make use of 24 JUNE
10 AUGUST have been sold, valued at
approximately RM100 million. a web-based self check-in With the administration fee
AirAsia X announces a 20% facility. abolished, passengers now
investment by Sir Richard pay only for their seats and
27 MARCH
Branson’s Virgin Group. 11 MARCH airport tax.
An order is placed for
another 10 Airbus A330-300 AirAsia X celebrates its
02 OCTOBER 26 JUNE
aircraft, bringing the airline’s inaugural flight to Stansted,
AirAsia X receives its Air London. AirAsia X sponsors the
total order to 25 A330-300
Operator’s Certificate and Oakland Raiders, three-time
aircraft.
Air Service License from the 02 APRIL National Football League
Department of Civil Aviation (NFL) Super Bowl champion.
31 OCTOBER Transport Minister Dato’
Malaysia.
AirAsia X takes delivery of its Sri Ong Tee Keat sends off
AirAsia X’s first flight to 01 JULY
02 NOVEMBER first brand-new Airbus A330-
300 aircraft in Toulouse, Tianjin, China. A new route to Taipei, Taiwan
The first flight to Australia’s is launched.
France.
Gold Coast is launched, with 28 APRIL
pioneering assigned seating 08 AUGUST
02 NOVEMBER AirAsia X and AirAsia partner
and pre-booked meals.
AirAsia X celebrates its first Scicom (MSC) Berhad to AirAsia X celebrates the
anniversary with a second establish a world-class, state- 42nd ASEAN Day at the Low
Australian destination, Perth. of-the-art global contact Cost Carrier Terminal (LCCT)
centre. in Sepang.
13 NOVEMBER
20 OCTOBER
AirAsia X’s inaugural flight
from Kuala Lumpur to A new route is launched to
Melbourne, Australia takes Chengdu, China.
off.

ones
corporate
AN 11-YEAR GROWTH STORY
2010 2011 2012

12 JANUARY
AirAsia X announces the suspension
17 JANUARY highest peaks, culminating of flights to London, Paris, Mumbai
20 JANUARY with a successful ascent
The Fly-Thru service is and New Delhi as part of its
Self check-in kiosks are of Mount Everest on 21 network consolidation.
launched at the LCCT.
introduced at the LCCT and May.
selected regional airports. 09 FEBRUARY
27 JANUARY
10 MAY The Empty Seat Option (ESO) via
10 FEBRUARY Passengers can upgrade OptionTown is launched.
AirAsia X joins the Group’s
to Premium Class
AirAsia X and AirAsia are the year-long “To Japan with
for a nominal fee via 02 APRIL
title sponsors of the 2010 Love” campaign.
OptionTown. The long-awaited route to Kingsford
AirAsia British Grand Prix at
Silverstone. 26 MAY Smith International Airport, Sydney,
03-07 FEBRUARY Australia is launched.
Celebrity Chef Shingun is
05 APRIL 2,380 Malaysians are
to prepare Korean dishes 22 JUNE
returned on AirAsia X
AirAsia X intoduces its popular for Seoul – Kuala Lumpur AirAsia X transfers its service from
rescue flights from the
Premium flatbeds. flights. Tianjin to Beijing, China.
Egyptian cities of Cairo
and Alexandria.
08 APRIL 22 JUNE 10 JULY
AirAsia X and AirAsia put a 14 FEBRUARY A Memorandum of Kathmandu, Nepal becomes a new
Malaysian team in the 2010 Understanding (MOU) is destination from Kuala Lumpur.
Valentine’s Day is
MotoGP World Championship. signed with Rokki Sdn
celebrated with the 23 JULY
Bhd (formerly known as
first flight to Paris Orly, The Samsung Galaxy Tab 10.1 is
06 MAY Tune Box Sdn Bhd) for
France. made available on all flights as a
AirAsia X launches a new route the development of an In-
Flight Entertainment (IFE) pre-booked option.
to Mumbai, India. 01 APRIL
solution.
AirAsia X launches a new 09 AUGUST
04 AUGUST A letter of intent is signed with
route to Christchurch, 28 JUNE
New routes are launched to New New Zealand. the International Lease Finance
Delhi, India and Tehran, Iran. The Malaysian Corporation (ILFC) for the lease of
Government lifts route six Airbus A330-300 aircraft.
07 APRIL
02 NOVEMBER restrictions on AirAsia
Adventurer Khoo Swee X, with the exception of 02 NOVEMBER
Seoul, South Korea becomes Chow is flown to eight Sydney. An Australian wins AirAsia X’s
AirAsia X’s 12th destination. destinations within Friendsy Facebook contest – held
AirAsia X’s network, 30 NOVEMBER to celebrate the airline’s fifth
09 DECEMBER namely China, the UK, anniversary – and gets to fly with
AirAsia X touches down
A new route is launched to France, Iran, Japan, 300 of her family and friends from
at Kansai International
Tokyo (Haneda), Japan. Korea, Taiwan and New Sydney to Kuala Lumpur on their
Airport in Osaka, Japan. own exclusive flight.
Zealand, to scale their

The Digital Airline
corporate milestones
2013
01 FEBRUARY
AirAsia X caters to guests who

like their peace and quiet with the
launch of the Quiet Zone.
10 JUNE
2014
04 FEBRUARY
16 FEBRUARY
AirAsia X’s first flight to Jeddah, AirAsia X launches its Initial Public AirAsia X Thailand obtains its Air
Offering (IPO) prospectus. Operator’s Certificate and appoints
Saudi Arabia takes off.
Nadda Buranasiri as its new CEO.
19 FEBRUARY 13 JUNE
28 APRIL
AirAsia X’s first flight to Shanghai, AirAsia X launches a Shareholders’
AirAsia X signs an MOU with GE for the
China takes off. Benefit Programme for retail investors
supply of CF6 engines for its fleet.
who maintain their IPO shares for the
26 FEBRUARY first three years, subject to terms and 09 MAY
conditions.
The Red Carpet service is AirAsia X together with AirAsia Berhad
launched, providing VIP treatment begin operations in klia2.
10 JULY
to guests.
AirAsia X commences trading under 25 MAY
10 APRIL AAX (Stock Code: 5238) on the Main AirAsia X signs a Commercial Marketing
Market of Bursa Malaysia. Agreement with Air Busan offering
AirAsia X launches the ‘Fly Home
customers affordable fares to Jeju
to Vote’ campaign in conjunction 15 JULY Island from Busan, both in South Korea.
with Malaysia’s 13th General
Elections. AirAsia X arrives in Busan, its second
17 JUNE
destination in South Korea after Seoul.
AirAsia X Thailand launches its
23 APRIL
29 AUGUST inaugural flight from Bangkok to Seoul,
AirAsia X receives its 10th Airbus South Korea with a 100% load factor.
A330-300 aircraft in Toulouse, AirAsia X completes its rescue mission
France. in Cairo, after having brought home a 02 JULY
total of 1,110 Malaysians.
AirAsia X sends off its first flight to
12 MAY Xi’an, China marking it as the only
14 OCTOBER airline from Kuala Lumpur to connect
Sir Richard Branson dresses as
AirAsia X Thailand receives its Air both cities.
a flight attendant and serves on
board flight D7237 from Perth to Operator’s License from the Ministry of
15 JULY
Kuala Lumpur. Transport Thailand.
AirAsia X and Airbus sign an MOU
18 DECEMBER for Airbus A330neo aircraft valued at
USD13.8 billion.
The single largest aircraft type firm
order of 25 Airbus A330-300 aircraft AirAsia X is named the World’s Best
is sealed with Airbus, valued at USD6 Low-Cost Airline – Premium Class Seat
billion. and World’s Best Low-Cost Airline –
Premium Cabin at the Skytrax World
Airline Awards in London.
15 AUGUST
AirAsia X unveils a new livery, called
Xcintillating Phoenix, for its 21st aircraft
- the name being the winning entry by
Denzel Yap in a social media contest.

2015
30 JANUARY 11 JULY
AirAsia X announces AirAsia X’s leadership team
leadership changes with brings cheer to orphans at
Datuk Kamarudin Meranun Rumah Kasih Sayang.
as Group CEO and Benyamin
Ismail as Acting CEO. 12 AUGUST
AirAsia X and AirAsia reveal
13 FEBRUARY
‘Hitman’ David Foster as
28 AUGUST 03 DECEMBER AirAsia X launches its their new global ambassador.
inaugural flight from Kuala
AirAsia X Indonesia obtains AirAsia X sponsors 87
Lumpur to Chongqing, China. 27 AUGUST
its Air Operator’s Certificate. return flights from Shanghai
to Kuala Lumpur for the AirAsia X Malaysia and
25 FEBRUARY
04 SEPTEMBER Shanghai Symphony AirAsia X Thailand
Orchestra in support of a AirAsia X appoints Cheok collaborate with Lotte World
AirAsia X flies the first
charity concert organised Huei Shian as Chief Financial to offer attraction tickets on
batch of Malaysian Battalion
by the Alzheimer’s Disease Officer. flights to Seoul.
(MALBATT) 850-2 to
Foundation Malaysia.
Lebanon.
05 MARCH 01 SEPTEMBER
10 DECEMBER
30 OCTOBER Civil Aviation Safety AirAsia X names Benyamin
AirAsia X, together with Authority (CASA) approves Ismail as its CEO.
AirAsia X is presented with
AirAsia, announces global AirAsia X Indonesia’s direct
an Excellence award by
football icon Park Ji Sung as flight from Melbourne, 08 SEPTEMBER
Expatriate Lifestyle’s The
its new global ambassador Australia to Bali, Indonesia.
Best of Malaysia Awards. AirAsia X and AirAsia
with the unveiling of a Park
continue to fly Malaysian
Ji Sung livery. 28 MARCH
19 NOVEMBER heroes on peacekeeping
AirAsia X supports young missions.
AirAsia X supports Neubodi’s 15 DECEMBER
climbers taking part in the
‘Uplift Charity Trail’ to donate
AirAsia X places a firm order Misi Perdana UTM Everest 28 SEPTEMBER
bras to village women in
for 55 Airbus A330neo 2015.
Nepal. AirAsia X Thailand celebrates
aircraft.
its inaugural flight from
29 APRIL
21 NOVEMBER Bangkok to Shanghai, China.
19 DECEMBER
AirAsia X offers free flights
AirAsia X commences flights
AirAsia X helps to spread to Nepal for NGOs and 01 OCTOBER
to Narita, Tokyo.
Christmas cheer at klia2. humanitarian agencies in aid
AirAsia X launches its
of relief efforts.
25 NOVEMBER inaugural flight from Kuala
Lumpur to Sapporo, Japan.
AirAsia X supports the 12 MAY
Awesome All Stars,
AirAsia X receives the IATA 17 OCTOBER
Malaysia’s elite cheerleading
Operational Safety Audit
team, to compete in the 2014 AirAsia X Indonesia
(IOSA) Registration.
Australian All Star Cheer & celebrates its inaugural
Dance Championship held in flight from Bali to Sydney,
18 MAY
the Gold Coast. Australia.
AirAsia X Indonesia launches
28 NOVEMBER its inaugural flight from Bali 19 NOVEMBER
to Melbourne.
AirAsia X welcomes its 22nd AirAsia X bids namaste
Airbus A330-300 aircraft, (hello) to New Dehli with the
02 JUNE
called Rhythmic Experience, launch of a new route to the
powered by Rolls-Royce’s AirAsia X and Flight Indian capital.
1,500th Trent 700 engine. Centre sign a Key Supplier
Agreement. 20 NOVEMBER
AirAsia X and AirAsia
16 JUNE
introduce exclusive inflight
AirAsia X is named the World’s dishes based on winning
Best Low-Cost Airline Premium recipes from the AirAsia
Cabin & Premium Seat for the Challenge on the MasterChef
third consecutive year. Asia TV series.

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corporate milestones
2016
12 JANUARY 02 JUNE 04 OCTOBER
AirAsia X announces the launch of AirAsia X welcomes two brand-new AirAsia X’s first flight to Mauritius
daily flights to New Zealand from Kuala Airbus A330-300 aircraft into its fleet lands at Sir Seewoosagur Ramgoolam
Lumpur via Australia’s Gold Coast, with in klia2. International Airport in Port Louis
prices from as low as RM499. with a 100% passenger load, marking
21 JUNE the airline’s first foray into the African
30 JANUARY continent.
AirAsia X successfully launches thrice
AirAsia X, together with AirAsia, holds weekly Kuala Lumpur – Tehran flights. 06 OCTOBER
a community event in Bangsar, Kuala
Lumpur as part of the #GREEN24 22 JUNE AirAsia Cargo is named Low Cost
movement, attracting the participation Carrier of the Year in both the Industry
of over 20 environmental organisations AirAsia X Thailand launches its Choice and Customer Choice categories
and inspiring the public to drop off inaugural flight from Bangkok to Tehran. of the Payload Awards Asia 2016 held in
recyclables. Hong Kong.
12 JULY
04 FEBRUARY AirAsia X wins the World’s Best Low- 19 OCTOBER
AirAsia X’s maiden flight from Kuala Cost Airline Premium Cabin and World’s Australian singer and X Factor judge
Lumpur to New Delhi lands in the Indian Best Low-Cost Airline Premium Seat Guy Sebastian is named AirAsia X’s
capital, carrying a passenger load of awards for the fourth consecutive latest ambassador.
over 90%. year at the 2016 Skytrax World Airline
Awards held at the Farnborough 31 OCTOBER
13 FEBRUARY International Airshow.
AirAsia X celebrates its ninth birthday
In conjunction with Chinese New Year, 17 JULY with a string of anniversary specials
the management and employees of including promotional seats with base
AirAsia X spend the morning at the AirAsia X announces special Travel fares starting from RM99 one way and
Ampang Old Folks Home in Kuala Great8 fares to celebrate its winning daily flight giveaways.
Lumpur where they distribute ang pow streak at the Skytrax Awards.
and gift hampers to the senior citizens. 03 NOVEMBER
02 AUGUST
23 MARCH AirAsia X unveils a special 9th birthday
The management and about 20 livery dedicated to guests and Allstars,
AirAsia X commences daily flights Allstars spend an afternoon with 75 in the Gold Coast, Australia – its first
connecting Kuala Lumpur to Auckland special needs children at the Persatuan destination, launched in 2007.
via Australia’s Gold Coast, with the Penjagaan Kanak-Kanak Cacat Klang
inaugural flight carrying a passenger Selangor, playing games, giving out 07 NOVEMBER
load exceeding 95%. gifts and duit raya as well as treating
the children to a scrumptious meal. AirAsia X and AirAsia Allstars officially
20 APRIL move into the Group’s new corporate
02 SEPTEMBER base, called RedQ, located next to klia2.
AirAsia X enters into a partnership
with MY ecolodge to offer special AirAsia opens its Premium Red Lounge 14 DECEMBER
travel packages to the Niseko region of to guests at klia2, offering an elevated
Hokkaido from June to October. travelling experience with 24-hour AirAsia X announces it is the main
service and facilities such as a buffet sponsor of the most anticipated annual
14 MAY spread, wireless internet, lounge, convention among Malaysia’s comic
workstations and showers. artists, illustrators, cosplayers and fans
AirAsia X Malaysia and AirAsia X of animation, comics and games – the
Thailand announce thrice weekly flights 23 SEPTEMBER Comic Fiesta 2016 – to be held on 17
to Tehran, Iran from Kuala Lumpur and and 18 December at the Putra World
Bangkok starting from 21 June and Together with AirAsia, AirAsia X Trade Centre.
22 June, respectively. announces its sponsorship of Korean
drama On the Way to the Airport by 23 DECEMBER
21 MAY Korean Broadcasting System (KBS),
in which the main characters are an Hundreds of travellers departing from
Passengers on board flight D7232 from AirAsia pilot and cabin crew. klia2 are pleasantly surprised to be
Kuala Lumpur to Perth are treated to serenaded by Allstars and to receive
an X-Men: Apocalypse themed journey, 27 SEPTEMBER Christmas treats, snacks and special
with characters from the Hollywood gifts at the boarding gates.
blockbuster movie on board, and AirAsia X flies back the last batch of
the aircraft itself boasting X-Men: Malaysian Battalion (MALBATT) 850-3
Apocalypse livery. who had been serving under the United
Nations Interim Force in Lebanon for
25 MAY a year. About 210 officers, rank and
file staff and personnel from the Royal
AirAsia X announces a new route, Brunei Armed Forces land in the air
connecting Kuala Lumpur with the base in Subang in the evening.
Indian Ocean’s island of Mauritius, to
commence with thrice weekly flights in
October.

16 JANUARY 28 JUNE 9 OCTOBER
2017
AirAsia X announces special all-in AirAsia X lands at Daniel K. Inouye AirAsia X announces Jeju, South
fares from RM199 one way for its International Airport with a remarkable Korea as its latest destination, setting
four times weekly direct flights from load factor of over 90%, marking the its course to commence four times
Kuala Lumpur to Wuhan, China. airline’s first foray into the US. The four weekly exclusive direct flights from
times weekly route departs from Kuala Kuala Lumpur to the idyllic island on 12
19 JANUARY Lumpur, Malaysia for Honolulu, Hawaii December 2017 with promotional all-in
Guests travelling on board AirAsia via Osaka, Japan. fares from RM199 one way.
X (flight code D7) flights will
now enjoy an enhanced inflight 15 JULY 19 OCTOBER
experience with the introduction The AirAsia X management team along AirAsia X’s 2016 annual report wins the
of the latest Xcite Inflight with Allstars Fun team spend almost an Best of Malaysia category in the 31st
Entertainment tab which offers entire day with 50 Rohingya refugee Annual International Annual Report
hours of entertainment with a wide schoolchildren in the age group of three Competition (ARC) Awards.
range of content, high resolution to 14 years at the Rohingya Community
touch screen device and an School in Cheras to celebrate Hari Raya. 26 OCTOBER
advanced audio technology right in
AirAsia X reaffirms its commitment
the comfort of their seats. 20 JULY
to make long-haul flying affordable
AirAsia and AirAsia X bag the for everyone in celebration of its 10th
24 JANUARY “Company of the Year Award: Airline anniversary, through an extensive
AirAsia X receives clearance from Category” at the CSR Malaysia Awards network expansion to stimulate regional
the Federal Aviation Authority (FAA) 2017 where AirAsia X tops the category demand in preparation for new aircraft
to fly to the US. The airline is the for championing community projects, delivery. The airline celebrates the
first Asian low-cost carrier to secure while AirAsia was awarded for its milestone today in the Gold Coast,
approval to operate scheduled cancer awareness initiatives under the Australia which was the maiden
passenger flights to the US. #AirAsiaMAKNA campaign. destination of AirAsia X a decade ago
on 2 November 2007. An aircraft painted
10 FEBRUARY 7 AUGUST with a special commemoration livery was
AirAsia X continues to lead the way AirAsia X launches a contest received at the Gold Coast International
with the launch of its Hawaii route, called Ultimate Xventure for youth Airport by senior executives of AirAsia X,
the airline’s maiden service to the US. aged between 18 and 32 seeking Gold Coast Airport Limited and Tourism
unforgettable adventure travel Events Queensland.
22 MARCH experiences.
AirAsia X announces a special 6 NOVEMBER
celebration for its daily direct flights 21 AUGUST AirAsia X achieves yet another
from Kuala Lumpur to Wuhan, with Creative director, Emalina Aimi Edris milestone with the announcement of
8,888 promotional seats from as low along with her three travel buddies direct flights from Kuala Lumpur to
as RM188 one way. emerge as winners at the AirAsia X Jaipur, India four times weekly effective
Ultimate Xventure Challenge final held 5 February 2018.
27 APRIL at Sunway Lagoon Extreme Park. They
AirAsia X announces that it will fly won a grand prize of a four-day and 13 DECEMBER
the national badminton team to three-night trip to New Zealand after AirAsia X makes its maiden entry to the
the Gold Coast, Australia in May to defeating three other teams in the South Korean island of Jeju with the
participate in the highly anticipated challenge. successful landing of flight D7501 on
2017 Total BWF Sudirman Cup Airbus A330-300 at Jeju International
as part of the airline group’s 25 AUGUST Airport, making it the only airline with
#DARETODREAM sports initiative. AirAsia X’s 2016 annual report wins direct connections between Kuala
two gold awards at the International Lumpur and the largest island off the
19 JUNE Annual Report Competition (ARC) for coast of the Korean Peninsula.
AirAsia X announces its Fly High & the first time ever. The airline wins the
Get Rewarded! Contest to reward top prize for the Best Non-Traditional 19 DECEMBER
guests for spending on flights and Annual Report (Airlines) and Printing
AirAsia X announces the appointment
add-ons. and Production (Airlines). It also bags
of Wong Mee Yen as Chief Financial
a silver in the Cover Photo/Design
Officer with effect from 1 January 2018.
21 JUNE (Airlines) category.
AirAsia X scoops up the World’s 18 SEPTEMBER
Best Low-Cost Airline Premium
Cabin and World’s Best Low-Cost AirAsia X readily lends its support to
Airline Premium Seat awards for 10 Malaysian tourists who were victims
the fifth straight year. of fire which destroyed a three-storey
wooden vacation house in Christchurch,
New Zealand.

The Digital Airline
3 APRIL
Inspiring Today’s Youth
AirAsia X flew 42 Universiti Teknologi Malaysia (UTM)
students to Melbourne as part of our sponsorship of the
6 FEBRUARY Australia Cultural and Technology Exchange 2018 (ACUTE18).
The global talent programme was hosted at Melbourne
AirAsia X flies to Jaipur
University from 3-7 April.
AirAsia X announced its latest route from Kuala Lumpur to
Jaipur, making it easier for Malaysians to travel to north-west
India.
26 FEBRUARY
Sony Partnership for Latest Noise Cancelling Headphones
As of today, Premium Flatbed seats on AirAsia X flights 12 APRIL
between Kuala Lumpur and Tokyo Haneda will feature Sony’s IOSA registration renewed for third time
h.ear on 2 Wireless Noise Cancelling WH-900N headphones. AirAsia X Malaysia received its third biennial IATA Operational
The headphones come together with the airline’s Xcite inflight Safety Audit (IOSA) registration, affirming our commitment
entertainment tablets. to the highest standards of operational safety. IOSA is an
internationally recognised and accepted evaluation system
designed to assess an airline’s operational management and
control systems, and is regarded by the industry as the global
benchmark for safety management.

1 MAY 25 MAY
Announcing Flights to Amritsar AirAsia launches UFC branded livery
AirAsia X announced a new direct route from Kuala Lumpur As a sponsor of UFC and presenting sponsor of UFC® FIGHT
to Amritsar in northern India as part of expansion plans in NIGHT SINGAPORE: COWBOY VS EDWARDS presented
India. Amritsar is a popular religious, tourism, commerce and by AirAsia, we launched the first UFC branded livery on an
trade destination. AirAsia Airbus A330-300.
1 MAY
Surfboards fly free with AirAsia
As Australia’s Official Airline of Surfing, AirAsia announced
that as of today, surfers from across Australia will be able
to travel with their surfboards to and from surfing hot spots 29 MAY
such as Indonesia, Thailand, the Maldives, Japan and the AirAsia X set to fly daily to Honolulu
Philippines at no additional cost. AirAsia X is set to operate seven flights a week to Honolulu,
Hawaii from Kuala Lumpur, Malaysia via Osaka, Japan
beginning 16 August 2018 on the back of robust demand from
Southeast Asia.

The Digital Airline
2018 Corporate Events
10 JULY 17 JULY
AirAsia to transition Melbourne services to Avalon Celebrating six years of being the best
AirAsia X confirmed it will transition its twice daily Melbourne AirAsia X was presented the World’s Best Low-Cost Airline
(Australia) service from Tullamarine Airport to Avalon Airport Premium Cabin for the sixth consecutive year at the 2018
from 5 December this year. The flight will deliver guests from Skytrax World Airline Awards held at The Langham, London.
Malaysia and Asean closer to one of Australia’s top tourism
drawcards, the Great Ocean Road, while continuing to provide
convenient and affordable access to downtown Melbourne.
12 JULY 19 JULY
Sharing festive joy with the homeless and urban poor AirAsia confirms 66 A330neo and orders a further 34
AirAsia X Malaysia CEO Benyamin Ismail along with a group AirAsia X places an order for an additional 34 Airbus
from the management team, distributed packed food to A330neo wide-body aircraft. The latest agreement reaffirms
the homeless and urban poor in Kuala Lumpur in the spirit AirAsia X’s position as the largest airline customer for the
of sharing during the Hari Raya Aidilfitri festive season. The Airbus A330neo, with the total number of aircraft ordered
children also received duit raya. increasing to 100. All the Airbus A330neo aircraft ordered by
AirAsia X are the larger A330-900 model.

25 JULY 26 JULY
Datuk Kamarudin Meranun receives Lifetime Achievement From Bangkok direct to Nagoya
Award Thai AirAsia X announced direct flights from Bangkok (Don
Former AirAsia X Group CEO Datuk Kamarudin Meranun Mueang) to Nagoya, a city of culture in the heart of Japan
was presented the prestigious Lifetime Achievement Award and the capital of Aichi prefecture in the Chubu region. The
at the 8th Global Leadership Awards held in Kuala Lumpur. service is to be launched on 30 October 2018, strengthening
The award was conferred based on his remarkable career, our associate’s position as the long-haul low-cost carrier with
deep dedication in spearheading corporate and community the largest coverage of destinations in Japan.
development and continued efforts in steering AirAsia to
greater heights.
26 JULY 17 AUGUST
Search for joint ambassador with Sony Malaysia Launch of flights to Amritsar
AirAsia X announced a new partnership with Sony Malaysia AirAsia X’s inaugural service to the holy city of Amritsar
by launching a global search for the first ever joint brand (India) took flight, adding an exciting new destination to
ambassador to represent the leading travel and visual the airline’s fast-growing long-haul network. Flight D7188
technology brands. The ambassador stands to win a year’s air departed from Kuala Lumpur with AirAsia’s fun team dancing
travel courtesy of AirAsia and latest Sony camera equipment. to Bhangra beats while guests and dignitaries onboard were
treated to traditional Indian sweets and gifts amongst other
entertainment as part of the celebrations.

The Digital Airline
2018 Corporate Events
5 SEPTEMBER 14 OCTOBER
AirAsia X teams up with Renowned Theme Park More affordable and convenient travel for Victorians
AirAsia X Thailand has joined hands with Lotte World, a AirAsia and SkyBus announced an enormous boost in bus
theme park and full-fledged entertainment centre in Seoul, services to Melbourne’s West, as the region prepares for the
South Korea, to introduce a Lotte World livery depicting the first-ever international flights to touch down at Avalon Airport
park’s mascots and iconic castle as well as Lotte World Tower, on 5 December. Around 4,500 new SkyBus services per year
South Korea’s tallest skyscraper. The new livery is part of will be delivered under the deal, almost doubling the number
a promotion and media exchange agreement between our of existing services connecting Melbourne’s Southern Cross
associate and Lotte World. Station in the heart of the CBD with Werribee and the new
international terminal at Avalon.
25 SEPTEMBER
AirAsia Delivers Summer Boost for Gold Coast
AirAsia X announced additional flights between Kuala Lumpur 30 OCTOBER
and the Gold Coast for the Christmas and New Year season.
Direct flights from Taipei to Osaka
From 13 December 2018 to 12 January 2019, the daily service was
AirAsia X announced the launch of four times weekly direct
ramped up to 11 flights per week, offering holidaymakers and
flights between Taipei and Osaka commencing 30 January
Australians an affordable overseas getaway for their summer.
2019, making it the only low-cost carrier (LCC) operating this
route.
11 OCTOBER
Expansion into China 31 OCTOBER
AirAsia X announced an exclusive direct service between
AirAsia X celebrates 11th anniversary
Kuala Lumpur and Tianjin, connecting the coastal city in
AirAsia X announced an 11th anniversary sale to popular
China of more than 15 million people with Southeast Asia and
destinations such as Chengdu, Hangzhou, Wuhan, Chongqing,
beyond from 2 December 2018.
Xi’an, Taipei, Tokyo, Osaka, Sapporo, Busan, Perth, Melbourne,
Gold Coast, Sydney and New Delhi at very affordable prices.

1 NOVEMBER
New Group Chief Executive Officer
AirAsia X announced the appointment
29 NOVEMBER
of AirAsia X Thailand CEO Nadda
Buranasiri as the new AirAsia X Group Exclusive direct flights to Fukuoka
CEO, and the re-designations of Co- AirAsia X announced the launch of a direct Kuala Lumpur – Fukuoka service.
Group CEOs Datuk Kamarudin Meranun The four times weekly flights, to commence on 28 February 2019, will be the
and Tan Sri Tony Fernandes as Non- airline group’s fifth destination in Japan and fourth route from Kuala Lumpur,
Executive Directors. Datuk Kamarudin strengthening Malaysia - Japan bilateral ties while stimulating local trade and
and Tan Sri Fernandes will continue to tourism growth.
oversee the strategic direction of the
business and its operations as Directors
of AirAsia X Berhad.
15 NOVEMBER 5 DECEMBER
Champions at the 2019 AirlineRatings. Touch down at Avalon
com Airline Excellence Awards AirAsia X touched down at Melbourne’s Avalon Airport, launching the first
AirAsia X Malaysia and AirAsia were international service to and from Victoria’s second airport in Melbourne’s Southwest.
awarded Best Low-Cost Carriers Asia
Pacific for 2019 at the industry-led
AirlineRatings.com Airline Excellence
Awards. Judged by a panel of industry
experts with a combined 200 years of
experience, the awards bring together
four major international industry and
government safety audits alongside
demonstrable leadership in the areas
of innovation, value and passenger
comfort. 18 DECEMBER
AirAsia X Thailand completes IOSA
AirAsia X Thailand completed its Operational Safety Audit (IOSA) by the
International Air Transportation Association (IATA), affirming its commitment
to maintaining the highest safety standards at all times. The airline is the fifth in
AirAsia Group to become IOSA registered.

The Digital Airline
MEDIA HIGHLIGHTS
TELEVISION
23 MAY 2018 – Bloomberg 10 JULY 2018 – Nine News Australia 10 JULY 2018 – The EDGE TV
AirAsia X net income at $10.5 million, After almost a decade of operations AirAsia X moves to Melbourne Avalon
launches services to Amritsar, India at Tullamarine, AirAsia announces its Airport from December 5
transition date to Melbourne Avalon
29 OCTOBER 2018 – GTV Gala 8 NOVEMBER 2018 – CAPA TV 9 NOVEMBER 2018 – Astro Awani
Televisyen Corporation AirAsia X Drops Auckland But Will (LIVE)
AirAsia X launched Taipei-Osaka route Relook At Resuming Expansion To AAX Contemplating Narrowbody
Australia/New Zealand Switch
29 NOVEMBER 2018 – Astro Awani 5 DECEMBER 2018 – Today Show 9HD 29 DECEMBER 2018 – Astro Awani
AirAsia X Lancar Penerbangan Terus AirAsia Landed in Avalon Doing battle with MAHB
KL-Fukuoka

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1. The complimentary access to Plaza Premium Lounges in KLIA & klia2 is only open to valid Principal WorldMiles Cardholders with
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Standard Chartered Bank Malaysia Berhad (115793-P)
sustaina
The Digital Airline
Statement
Eleven years ago, AirAsia X made history by being the first long-
haul low-cost airline to be launched in Asia. Today, we continue to
make history with our ongoing success. We were pioneers in our
sector not because none before had thought of the idea of a long-
haul low-cost airline, but because nobody had the right ideas to
make such a business work. We too, admittedly, did not start off
with a foolproof plan. We have been finetuning our model since
the beginning, incorporating lessons learnt along the way. But,
11 years on, we are finally in a position where we can claim that
the way we operate is not just viable for the here and now; it is
sustainable for the long term.
That our model rests on keeping our costs low goes without saying. What makes it sustainable is the way we achieve this.
Broadly, our sustainability is based on five key elements: 1) operating at the highest level of safety; 2) being fuel efficient;
3) having a highly motivated, creative and productive workforce, who are passionate about how they can contribute to
our sustainable operations; 4) making our guests happy and therefore happy to fly with us again, and again, and again;
and 5) building the AirAsia X brand as the most affordable and socially responsible way to fly to exciting destinations.
These five focus areas are very important to us because they are critical to our ongoing success. At the same time, we
are driven by a sense of responsibility to create value for the lives we touch, firm in the belief that it is the right thing to
do. In the following pages, we will describe more fully our sustainability actions, why they are important to us and our
stakeholders, and how we intend to build on our already robust sustainability framework.
As part of One AirAsia, a number of our sustainability initiatives are driven by the Group. In reporting, we seek to be
transparent in this regard, and acknowledge the contributions of AirAsia.
Under the One AirAsia concept, we share the same sustainability governance structure as AirAsia. A common
Sustainability Working Committee monitors all sustainability matters for the entire AirAsia Group, with oversight from the
AirAsia Group Board of Directors. The Sustainability Working Committee comprises Group Heads of Department and is
chaired by AirAsia Group CEO, Tan Sri Tony Fernandes. All matters related to sustainability are carried out by the related
departments, facilitated by Group Sustainability.

bility
SAFETY
ALWAYS OUR PRIORITY
INNOVATION
TO GET FROM GOOD TO GREAT
REWARDING & DEVELOPING OUR CREATING A HEALTHY SERVING OUR
TALENT ENVIRONMENT COMMUNITY

The Digital Airline
SAFETY
ALWAYS OUR PRIORITY
SAFETY, FIRST AND FOREMOST

Safety is our biggest priority. We are relentless in upholding
the highest aviation safety standards because nothing
matters more than the safety of our guests and Allstars.
We were the first airline in the AirAsia Group to undergo
and receive approval from the International Air Transport
Association (IATA) Operational Safety Audit (IOSA) in April
2015, and have since renewed our registry twice, the second
time in April 2018.
Our safety procedures are guided by a Safety Management

System (SMS) encompassing hazard and risk management
in line with the requirements of the International Civil
Aviation Organization (ICAO).
The system is constantly reviewed and updated according

to best practices and new technologies.
This year, having abolished paper reporting forms, we

introduced a new safety reporting system, Coruson, which
enables Allstars to raise safety reports using an application
on their personal electronic devices, supplementing the
use of the web-based forms. The convenience of the
mobile application contributed to a record number of
reports, signifying an intensifying safety culture within the
organisation. All the reports were thoroughly investigated
by our Safety Department, following which corrective
measures were taken. More than 50% of the reports were
hazard-related.
As we keep innovating and improving, AirAsia X plans to

digitalise our safety measures with a focus on centralisation
of data to enable real-time analysis and visualisation.
Flight Safety
We monitor our flight safety performance through a set of
Safety Performance Indicators (SPI) obtained from Flight
Data Monitoring and Air Safety Reports (ASRs). All AirAsia X
aircraft are retrofitted with wireless ground link data transfer
which automatically transmits flight data upon landing.
Deviations from the limits provided in the Standard Operating
Procedures (SOP) are thoroughly analysed and, where
necessary, corrective and/or preventive measures are taken.
A Flight Data Analysis Monitoring Team (FMT) comprising

independent line pilots meet monthly to review, discuss and
identify such deviations, and propose corrective actions
in line with international standards and recommended
practices. The FMT also ensures the risk levels of flight
operations deviations are maintained at or below
acceptable levels based on a flight safety risk register.
Cabin Safety
The role of our cabin crew goes beyond seeing to our guests’
comfort to ensuring all cabin products and services are
delivered safely. In this, our cabin crew are guided by our
Cabin Safety regulations which cover a range of disciplines,
topics and processes in the areas of risk management,
reporting, investigation and auditing, among others.
Ground Safety
In 2018, we strengthened our oversight of ground safety,
with more in-depth monitoring of specific tasks carried out
during turnaround operations.

Various assessments were also undertaken by the Ground
Safety Team to ensure Allstars follow set procedures in
the course of carrying out their functions. These covered
Positive Noise Monitoring and the risks of exposure to
hazardous chemicals used in the maintenance of aircraft.
The assessments show that our Allstars adhere to our safety
guidelines and that the Personal Protective Equipment used
are adequate to protect them against various hazards. The
assessments further indicate that we comply with the Noise
Exposure Regulations 1989 and the Occupational Safety
& Health Act 1994 (Use and Standards of Exposure of
Chemicals Hazardous to Health Regulations 2000).
Emergency Response Plan

AirAsia X’s Emergency Response Plan (ERP) meets strict
international standards and has been endorsed by the Civil
Aviation Authority of Malaysia (CAAM). Our procedures and
plans are tested biannually through ERP Table Top Exercises
to ensure safe, orderly and timely transition to normal
business operations following any emergency.
In 2018, “Exercise Kiwi X” was carried out at the Emergency

Operations Centre at our headquarters RedQ to test our
emergency response procedures and ensure that key
personnel are familiar with it. The four-hour exercise,
simulating a missing aircraft, revealed good overall
understanding of individual roles in times of emergency.
Where there was room for improvement, relevant steps
have been taken to fill the gaps.
Engineering Safety
Engineering maintenance ensures the airworthiness
of aircraft, and is critical for safe airline operations.
Towards this end, our Safety team works closely with the
Engineering Department to conduct joint investigations
on aircraft as well as develop more effective and efficient
corrective actions. In addition, Safety Action Group
(SAG) members meet on a quarterly basis to discuss
implementation issues pertaining to engineering activity.
Safety Promotion
As a people-oriented company, AirAsia X invests significant
resources to reinforce a safety culture throughout the
organisation. Our aim is to create a safety mindset through
regular engagement and communication of critical safety
information to all Allstars.
In 2018, we collaborated with the AirAsia Group to organise

a group-wide One AirAsia Safety Day, a roadshow-like
event that promoted safety awareness through interactive
activities. At the event, Allstars were able to consult subject
matter experts on any safety inquiries they may have and
provide feedback to facilitate in the development of future
initiatives. One of the highlights was the Safety Heroes
Award which was established to recognise Allstars whose
actions have helped to prevent serious safety incidents.
Apart from internal safety activities, our Safety Department

engages with aviation safety groups such as the Association of
Asia Pacific Airlines Flight Operations Safety Working Group,
the Flight Safety Foundation, ICAO Asia Pacific Regional
Aviation Safety Team, and the Airservices Australia Safety
Forum. Such engagement allows AirAsia X to adopt best
practices while sharing our own processes with the industry.

The Digital Airline
INNOVATION
TO GET FROM GOOD TO GREAT
GUEST SERVICE & INNOVATION Net Promoter Score Dashboard

We exist to serve our guests and are determined to exceed AirAsia’s in-house Net Promoter Score (NPS) dashboard
their expectations by constantly demonstrating that we has made a significant change in driving Allstars to relate
are not only affordable, but a great way to fly. Along with to and understand our guests’ experience in real time.
the rest of the AirAsia Group, we have become “guest- No less than 301 persons-in-charge use the dashboard,
obsessed” and are placing an increasing amount of time as continuously monitoring the Detractor Analysis, namely
well as resources to find more and better ways to please analysis of pain points which are categorised according to
our customers. Going digital has brought many advantages the relevant department, AOC and route.
in this regard, allowing us to offer countless services that
make it easier and more convenient for guests to connect New Mobile Application
with us and manage their travel arrangements.
As of December 2018, we have been rolling out different
phases of a new mobile application with enhanced features.
Taking our digital innovation a level higher, this year AirAsia
Guests can now stay updated on any changes to their
engaged Palantir as our strategic data science partner to
upcoming flight, use Siri to make voice commands, enjoy
drive in-depth sentimental analysis enabling us to better
the convenience of shortcuts to return to recent searches,
understand our guests and improve the way we market
and link easily to BigPay (if installed) for payment. The
our products as well as enhance their experience along
application also displays the fares for a particular flight
the entire value chain – from searching for flights till they
on different dates (on a low-fare calendar) and enables
depart from the airport at their travel destination.
guests to view and book hotels as well as activities while
purchasing items from OURSHOP (our rebranded and
Other digital innovations are described below.
product-enhanced DutyFree). If a guest is looking for travel
recommendations, he/she can avail of information provided
AVA
on all popular destinations in the AirAsia network. They can
AVA (AirAsia Virtual Allstar) was launched on 4 December also navigate themselves with ease once there, using the
2018 as the first point of contact in AirAsia to help guests Map on our application.
manage their online transactions. As a start, the chatbot
– available on Live Chat and AirAsia's customer support
Website
page – assists our guests with general Q&A and flight
status queries. In 2019, it will be able to help guests make During the year, we upgraded our website to be more
bookings, add ancillary products and make booking mobile-friendly in terms of speed and layout. The portal
changes. Currently available in English, Bahasa Indonesia, also remembers users’ last searches and bookings so they
Bahasa Malaysia, Chinese Simplified, Chinese Traditional can return to where they were quickly. Additionally, the
and Thai, more languages will be added in 2019. flight status function has been enhanced to provide more
accurate information on whether a flight has been delayed,
is on time, has departed early, has landed or been cancelled.

REWARDING & DEVELOPING OUR
TALENT
CREATING A DYNAMIC WORKPLACE
All our successes to date have been the result of our Allstars, who share our passion to make the travel dreams of millions
of people come true. In turn, we inspire our people themselves to have career dreams, and fuel their aspirations by
providing ample opportunities for learning and development, as well as moral support.
There are no offices at RedQ; everyone sits in an open-plan layout in which there is free and easy interaction between
people at all levels, from all functions. This provides for a highly engaged and engaging work environment in which every
Allstar feels respected and able to contribute his/her opinions or ideas for the betterment of the company.
Workplace
Further enhancing an ecosystem of collaboration, we have embraced Workplace@Facebook which serves as a platform for
Allstars to engage in live online sessions. Workplace also contains a repository of useful information that Allstars can easily
access. This year, we added to the resource base by launching Buster, a jargon bot to de-mystify aviation terms so Allstars
understand what their colleagues in different departments do. We also launched the Visitor Bot on Workchat for Allstars to
register their visitors to RedQ. These initiatives contributed to AirAsia winning the ‘Most Innovative Use of Workplace' title
at the annual #WorkplaceTransform 2018.
Workplace Lives is used to communicate Group updates such as the launch of new routes, and to celebrate achievements
such as our sixth consecutive Skytrax win for the World’s Best Low-Cost Airline Premium Cabin. These bring Allstars closer
together, engendering a sense of belonging to a community. As of end December, 91% (16,600) of Allstars were active
Workplace mobile application monthly users while 9,900 were weekly mobile users. The mobile application is integral to
our increasingly mobile work culture. Workchat usage now equals that of email, creating a better workflow, with up to
53,000 messages sent daily.
Onboarding Programme
To help new recruits understand and settle into our culture, we conduct a two-day Onboarding Programme during which
we share everything about AirAsia – from the story of how we were set up, our values and what we expect of our people as
well as what they can expect from us. They are taken on a tour of RedQ and are introduced to other Allstars. They also get
to spend half a day at the heart of our business, namely the departure hall in klia2.
The programme also introduces new Allstars to the essentials of AirAsia X, from our safety processes and procedures to
our ICT and digital systems including Workday, Workplace, G Suite and RedIcons.
New Allstar Values
There have been many changes at AirAsia in recent

years – from the listing of AirAsia Group Berhad, to
the creation of One AirAsia and a separate digital line
of business. In the face of these changes, we felt a
need to revisit our values to reflect where we are in
our ongoing transformation, and remind our Allstars of
what we stand for and how we are defined. Hence an
Allstar Values campaign was launched during which our
values were printed on posters and postcards (using
FSC-approved paper), and plastered all over our offices
throughout our six country operations and all stations.
An Allstar Values video was also produced featuring
Allstars from across the Group who typify our principles.
Our New Allstar Values:

Dare to Dream
Make it Happen
People First
One AirAsia
Be Guest-Obsessed
Safety Always

The Digital Airline
REWARDING & DEVELOPING OUR
TALENT
Caring for Allstars
Anyone who has visited RedQ will understand that part of the attraction of becoming an Allstar are the excellent facilities
that we offer. Within the airy, comfortable space we call home, we provide a wide selection of international and local
cuisine, including a vegetarian caterer, T&Co coffees and cakes, a convenience store, clinic, gymnasium and a hairdressing
salon. This year, we added two new facilities: a daycare centre for young parents to leave their children and a Physio Lab.
The daycare centre, operated by early childhood education experts Krista Education, includes four classrooms with
multimedia facilities and learning aids. Launched in January 2018 with 36 young ones, it ended the year with 40 children
aged 11 months to six years under the care of seven qualified staff. The daycare centre is open from 7am to 7pm from
Mondays to Fridays.
The Physio Lab provides physiotherapy services for Allstars with any injury or discomfort due to work-related or other
causes. Officially opened on 2 January 2018, it saw 893 patients sign up for rehabilitative programmes during the year. Of
this number, 732 patients have successfully completed their treatment.
OMNI Learning
Career development is integral to our work culture, and is something we invest in. We keep enhancing our learning
environment, and in 2018 achieved a snapshot win by launching our first in-house learning programme. Called OMNI
Learning, this digital platform provides updates on the different programmes that are being run at our training centre, and
serves as an easy channel through which Allstars can sign up for these. The platform also keeps track of individuals’ training
histories and provides actionable analytics for our People Department to work on.
ONE AIRASIA GROW ME PROGRAMME: OMNI LEARNING
Runway to the future
A “MUST” for every Allstar! The essentials programme defines the way we work and instills in us the work ethics
that is uniquely AirAsia.
From creating the organisational strategy to building teams to getting results, leadership, arguably, is the key to an
organisation’s success. Through these leadership development journeys nurture the leader in you to take AirAsia to
greater heights.
Digital is not just a fad. It is a way of using technology to achieve three objectives - Creating exceptional customer
experience; Making internal processes agile; Unlocking new business value. These courses help you as leaders to
redefine strategies and business models that help achieve these objectives.
This programme will bring you the nuances of practices like critical thinking and decision making, communication
skills, project management, negotiation skills, planning and organisation. Consider it your personal stash of flying
returns.
LEADERSHIP WORK OR ESSENTIALS DIGITAL

DEVELOPMENT MANAGERIAL SKILLS PROGRAM ACCUMEN

CREATING A HEALTHY
ENVIRONMENT
A GREENER AIRLINE
We recognise that airlines contribute to global carbon • Packs Off Take-off
emissions. Although many would be surprised by how little
the industry’s contributions are – at just about 2% of total This reduces fuel consumption while enabling greater
man-made emissions – we still believe we have a responsibility thrust power during take-off.
to operate as energy efficiently as possible while protecting
the environment in other ways too. As a measure of our • Reduced Flap Landing
commitment to going green, in 2017 AirAsia set up a Green This reduces drag, hence also fuel burn and noise
& Environmental Affairs Department, members of which are emission.
aptly called the Green Team. The Green Team has been largely
responsible for creating greater awareness of the importance
of being respectful of the environment – making Allstars think Fuel saved by the Group’s operations in 2018, in tonnes
twice about using straws, for example – and achieving better
environmental outcomes at RedQ as a result. Initiative AAX TAX IAX
Packs Off Take-off 95.71 28.45 –

Fuel Efficiency
Being fuel efficient is extremely important to AirAsia X as Reduced Flap 251.91 75.99 11.97
fuel comprises a significant portion of our overall costs. We Landing
undertake various initiatives to reduce our consumption,
which effectively also reduce our carbon emissions. These IDLE Reverse 551.46 169.56 39.30
initiatives are described below: Landing
OET on arrival 291.32 274.05 41.39

• One Engine Taxi-Arrival (OET-A)
When conditions permit, our pilots shut down one Class 2 - EFB 152.30 41.75 10.83
engine during the taxi-in, saving up to 10kg of fuel per
minute. Fuel savings are maximised when an aircraft has The Group’s emissions savings in 2018, in tonnes
to stay on the tarmac for an extended period of time
due to a long taxi-in or wait for parking bay allocation. Initiative AAX TAX IAX
Prior to 2018, we had obtained permission from airports
in Kuala Lumpur, Busan, Chengdu, Sydney and Perth to Packs Off Take-off 302.43 89.89 –
carry out OET-A. In 2018, we obtained the approval from
all remaining airports in our network, contributing to Reduced Flap 796.04 240.13 37.83
further reductions in CO2 emission. Landing
• Electronic Flight Bag (EFB) IDLE Reverse 1,742.61 535.81 124.19

Landing
We have replaced about 55kg worth of charts and
manuals on board our planes with Electronic Flight OET on arrival 920.58 865.99 130.79
Bag (EFB) applications, achieving up to 8.25kg of
fuel savings per sector, while also reducing the use Class 2 - EFB 481.28 131.94 34.23
of paper. The EFB application also allows for precise
performance calculations and fuel uplift calculations,
further reducing fuel consumption across the fleet.
• Opti-Climb
We have started to implement a climb manoeuvre in
which, instead of using managed speed, we engage a
digital Opti-Climb system that determines the optimum
speed the aircraft should be flying for minimal fuel burn.
The pilot then manually controls the aircraft’s speed
according to the data given. Opti-Climb trials have led
to an average of 100kg of fuel savings per sector.
• Idle factor
AirAsia X implemented an aircraft registration specific
IDLE factor that optimises the Flight Management
Guidance Envelope Computer’s (FMGEC) computation
of the vertical profile during the descent phase (idle
path segment). The calculation of the profile takes into
consideration the vertical flight plan, environmental
conditions and aircraft weight. Fuel savings can be
achieved by adjusting the point at which descent
commences, using idle thrust during this phase.

The Digital Airline
CREATING A HEALTHY
ENVIRONMENT
Energy Consumption
Most of the energy consumed by AirAsia X Group is in the form of fuel for our aircraft. For the year, our aircraft consumed
a total of 937,225.53 tonnes of fuel, marking a 6.67% increase from 878,646.98 tonnes in 2017. This was due to an overall
increase in our capacity.
At the same time, we consume electricity at our headquarters. Electricity consumption at RedQ increased 22.9% year-on-
year from 4,375,033.2kWh to 5,375,724.6kWh, as a result of rooftop construction works and interior design enhancement,
along with full operations of our new childcare centre, gym and the Physio Lab. Consumption at RedHouse, our HQ in Jakarta,
Indonesia, dropped by 2.7% due to fewer total working days in 2018 compared to 2017. We only started monitoring electricity
consumption at our headquarters in Bangkok as of 2018, hence are not able to provide a two-year comparison for our Thai
operations in this statement.
Comparison of electricity consumption at RedQ and RedHouse in 2017 & 2018:
RedQ RedHouse
Initiative 2017 2018 2017 2018
Electricity consumption (kWh) 4,375,033.20 5,375,724.60 1,328,838 1,293,201
Tonnes CO2e 3,036.27 3,730.75 1,165.391 1,134.137
Carbon Emissions Recyclable Waste

During the year, total greenhouse gas (GHG) emissions from Conscientious efforts are made to reduce and recycle our
fuel consumption for AirAsia X Group increased 6.67% from non-scheduled wastes in our office premises as well as our
2,776,524 tonnes of CO2 equivalent (tCO2eq) to 2,961,633 cabins to minimise our waste to landfill.
tCO2eq. For AirAsia X Malaysia specifically, GHG emissions
increased 2.5% from 2,007,786 tCO2eq to 2,058,070 tCO2eq In 2017, we installed bins at strategic locations within RedQ
while emissions from our ground vehicles increased 18.1% for Allstars to dispose of paper, metal and glass waste
from 448 tCO2eq to 529 tCO2eq (measurements for our (separately).
associates in Thailand and Indonesia are not available).
For the Malaysia operations, our GHG intensity ratio, as Recyclables collected in RedQ, 2017 & 2018:
measured by tCO2eq emitted per passenger kilometre
(tCO2e/pkm) improved from 72.73 tCO2e/pkm to 68.09
Initiative 2017 2018
tCO2e/pkm while, per flight, our average CO2eq emissions
decreased 3.8% from 105,834kg to 101,784kg. Again, Plastic (kg) 745 467
measurements for our associates in Thailand and Indonesia
are not available. Paper (kg) 18,482 14,524
AirAsia as a group implemented a carbon dashboard in Metal (kg) 1,524 2,675

June, which will allow us to report more comprehensively
as a Group from 2019 onwards. The dashboard has been Total (kg) 20,751 17,666
developed in-house as part of our commitment to the
Carbon Offsetting & Reduction Scheme for International mtCO2e 40.73 44.60
Aviation (CORSIA) by ICAO.
In August 2018, our Green Team also introduced
Effluents & Waste e-waste recycling in RedQ. Allstars have been educated
about e-waste and encouraged to avail of two bins in
We produce both scheduled waste (which is potentially our headquarters installed for its collection. The bins
toxic to people and the environment) and non-scheduled are emptied by Alam Flora, and the waste processed
waste. All scheduled waste is disposed of according to accordingly. Allstars have responded positively to the
the relevant environmental regulations. These include e-waste initiative, noting a general lack of environmentally-
spent lead acid batteries, electric and electronic waste, responsible methods of disposing of e-waste in the country.
substances containing mercury, fluorescent lamps, spent
oils and contaminated soil/absorbent, containers, gloves, Recyclable cabin waste is segregated on board and
rags and filters. We have a team of competent persons who disposed of upon landing. Because some of the airports we
ensure such waste is stored in appropriate containers in serve do not provide facilities to recycle the waste, the bags
designated areas in airports and disposed of by specialist are returned to Kuala Lumpur where they are disposed of
collectors. All our scheduled waste collectors in Malaysia along with other cabin recyclables. A total of 23,107kg of
are approved by the relevant authorities. During the year, recyclables was collected by the Malaysian operations of
nine more Allstars in Malaysia were certified as competent AirAsia X and AirAsia in 2018, representing a 67.1% increase
persons. from 13,830kg in 2017.

Environmental Management System Uniform Upcycling Contest
To date, our environmental initiatives have been managed Cabin crew change their uniforms every year while other
by our Safety, Facilities and Well-being departments, among uniformed Allstars change theirs every two years, resulting
others. In 2018, however, we have begun the process of in an average of five tonnes of discarded uniforms per
implementing a structured Environmental Management annum. To prevent these from ending up in landfills, the
System (EMS) for more efficient and coordinated efforts. Green Team organised a contest requiring participants to
Workshops have been conducted with the various operational design innovative products using the old garments. The
departments, and work is ongoing to establish a framework to contest was launched regionally in April 2018, receiving 144
support the system in Malaysia. Once proven, the EMS will be submissions from all countries across AirAsia, 42 of which
replicated across the other AOCs. were shortlisted. The winning designs will be made available
for sale in-flight from Q2 2019 onwards.
Along with the EMS, we will be conducting Supplier
Environmental Assessments. This, again, is a work in progress Regional Earth Hour Hunt
and we hope to have positive updates to report on in the
This year, we went beyond switching off all lights during
coming years.
Earth Hour; 100 Allstars from across the Group (Japan,
India, Malaysia, Indonesia, China and the Philippines) got
together on a special Treasure Hunt revolving around the
theme of battling plastic pollution. The highly educational
docu-movie STRAWS was also aired to increase Allstars’
general understanding of the issue, while also containing
clues for the hunt.

The Digital Airline
SERVING OUR
COMMUNITY
GIVING BACK TO OUR COMMUNITIES
We have a strong ethos of caring for the community, which is an extension of our belief in democratising privileges such
as flying. Everyone is important to us, and we demonstrate this by lending our aircraft whenever needed in times of crisis,
as well as to support social, cultural and sporting causes. Additionally, we partner non-governmental organisations (NGOs)
and community groups to help enhance their efforts to serve the underserved, and bring people of the world closer
together.
Need to Feed the Need (NFN) Hari Raya

This year, we made a commitment to support local NGO Need to Feed the Need (NFN) for a year. NFN assists the homeless
and urban poor in Kuala Lumpur. Among other initiatives, our management, led by CEO Benyamin Ismail, hosted some
of the beneficiaries of NFN at Medan Kasih, Lorong Medan Tuanku 2 to celebrate Aidilfitri. At the event, we also gave the
children snacks, candy and duit raya to take back with them.
AirAsia Juraki Surf Invitational 2018

AirAsia X became the official sponsor of the Juraki Surf Invitational, a modern-day corroboree that brings tribes from all
over Australia together in the spirit of surf and indigenous culture. The event, organised in Fingal Head on the Northern
New South Wales coast, is now called the AirAsia Juraki Surf Invitational.
NRL Touch Football Partnership

As part of our #DARETODREAM commitment, AirAsia X flew Australian youth touch football teams to Kuala Lumpur for
the Youth Touch World Cup 2018.
UFC® Scholarship Programme

In February 2019, we announced a joint scholarship with UFC for an outstanding athlete from Asia-Pacific to undergo
intensive four-week training at the UFC Performance Institute® in Las Vegas, Nevada. All expenses will be paid for.
JourneyD
JourneyD is a long-term responsible tourism project initiated by our colleagues in Thailand. The main objective is to help
local communities to establish community-based tourism (CBT) by connecting them with experts and organisations that
can enable them in this journey. The programme began as a pilot project four years ago in Nakhon Si Tammarat, and has
expanded to Krabi, Chiang Rai and Buriram. In line with the One AirAsia approach, JourneyD will be extended to include
communities from Malaysia and Indonesia in the near future.

Risk MANAGEMENT
MANAGING OUR RISKS
Risks are inherent to the aviation industry. To mitigate these risks, we have in place robust risk management systems which
maintain all risks within acceptable levels, in line with AirAsia. The objective is to safeguard our assets and avert negative
outcomes.
AirAsia’s Enterprise Risk Management (ERM) Framework standardises the processes of identifying, evaluating and managing
significant risks, adopting a bottom-up reporting approach with top-down oversight and management. Throughout the year,
risk awareness sessions were conducted for all business units across the Group to promote awareness of the importance of risk
management. This serves to strengthen the risk-aware culture at AirAsia X, in which everyone takes individual responsibility to
practise good risk management.
For more information on our significant risks, please refer to the Statement on Risk Management & Internal Control on pages
128 to 133 of this Annual Report.
BUSINESS CONTINUITY MANAGEMENT

The ERM Framework encompasses Business
Continuity Management (BCM), which serves to
ensure we are able to operate even in the event of
a crisis. We have a team dedicated to BCM, which
works assiduously to build our organisational
resilience and capability to respond effectively
should an event disrupt our operations.

“Serving Society with Superior Quality”
The Bridgestone Group is eternally committed to serving society with superior quality.
As you reach for the future, the Group will remain by your side.
Aircraft Tire Solutions
Bridgestone together with our partner airlines, is dedicated to supporting safer, secure
and efficient aircraft operations by providing tires and services with the highest quality
and advanced technologies.
Bridgestone Aircraft Tire Company (Asia) Limited

sales@bridgestone-baa.com
The Digital Airline
Corporate Governance
OVERVIEW STATEMENT
The Board of Directors (“the Board”) of AirAsia X Berhad (“AAX” or “the Company”) is
committed to ensure good corporate governance is applied throughout the Group. Save
as disclosed otherwise, the Board considers that it has complied with the principles and
recommendations as set out in the Malaysian Code on Corporate Governance 2017 (“MCCG”),
where applicable Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities
Berhad (“Bursa Malaysia”) during the period under review.
In building a sustainable business for a leading long-haul, The Board presents this statement to provide an insight
low-cost airline, operating primarily in the Asia-Pacific into the Corporate Governance practices of the Company
region, the Board is mindful of its accountability towards its under the leadership of the Board with reference to three (3)
shareholders and various stakeholders. Following the release principles:
of the MCCG by the Securities Commission Malaysia in April
2017, the Company Secretaries and the Company’s Legal
team conducted briefings on the new MCCG to the Board (a) board leadership and effectiveness;
and Senior Management. This helps the Board and Senior
Management to cultivate the spirit of MCCG in the Company
through the performance of their day-to-day duties. The (b) effective audit and risk management; and
Board’s commitment towards ensuring excellence corporate
governance standard is reflected in the explanation set
out in the Company’s Corporate Governance Report. This
statement takes guidance from the key practices of the (c) integrity in corporate reporting and meaningful
MCCG and should be read together with the Company’s relationship with stakeholders.
Corporate Governance Report published on its website at
www.airasiax.com.
PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS
1. Board Responsibilities 2. Board composition

The Board is actively overseeing the conduct and The size, balance and composition of the Board
provides direction to the management on the business support its role that drives the long-term direction
and affairs of the Company towards enhancing and strategy of the Company. It creates value for
business prosperity and corporate accountability shareholders and tracks the progress of the milestones
with the ultimate objective of realising long-term to meet its business objectives. It also ensures that
shareholder value and safeguarding the interests of good corporate governance is practiced and that
stakeholders. the Company meets its other obligations to its
shareholders and other stakeholders.
The Board sets corporate values and clear lines of
The Company has implemented procedures for
responsibility and accountability, including governance
the nomination and election of Directors via the
systems and processes that are communicated
Nomination and Remuneration Committee (“NRC”).
throughout the Group. It works closely with the senior
The NRC will assess candidates when sought as
management to ensure that the operations of the part of its recruitment exercise with the necessary
Company are conducted prudently, and within the skills, knowledge and experience. The Company also
framework of relevant laws and regulations. recognises and embraces the benefits of having a
diverse Board and has adopted a Board Diversity
Directors have independent access to the advice and Policy and through the NRC, will take steps to ensure
dedicated support services of the Company Secretaries that women candidates are sought as part of its
(who are legally qualified to act as company recruitment exercise. Selection of candidates to join
secretaries under the Companies Act 2016) to ensure the Board will be, in part, dependent on the pool of
effective functioning of the Board. The Directors may candidates with the necessary skills, knowledge and
seek advice from management on issues pertaining experience. The NRC will review the nominee(s) for
to their respective jurisdiction. The Board may seek directorship and Board Committees membership
independent professional advice at the Company’s by going through the profile and interviewing
expense in discharging its duties for the Company. the nominee(s) and thereupon submitting their
recommendation to the Board for decision. The
Company’s diverse Board includes and makes good
use of differences in skills, regional and industry
experience, background, race, gender, ethnicity, age
and other attributes of Directors.

The Board has in place a 9-year policy which limits the The NRC also reviews the composition of the Board and the
tenure of the Independent Non-Executive Director of Board’s Committees annually. During the year under review,
the Company to nine (9) years, with the view to enable the Board conducted the assessments on the performance
the Board’s continuous refreshment, to maintain its of the Board as a whole and its Board committees. The
effectiveness. An Independent Director may remain as NRC reports their findings to the Board for assessment of
Non-Independent Director after serving a cumulative the performance and effectiveness of the Board as a whole
term of nine (9) years. The Board may re-appoint him and its Board Committees and the performance of each
or her for the tenth (10th) until the twelfth (12th) year, Audit Committee Member. During the financial year, the
provided that the Board recommends this upon concrete NRC also reviewed and assessed the independence of the
justification and seeks annual shareholders’ approval in Independent Directors of the Company.
a general meeting. None of the independent directors
exceeded nine (9) years. While the Board had only The Constitution of the Company provides that at least
one (1) woman director represented on the Board for one-third of the Directors are subject to retirement by
the financial year ended 31 December 2018, the Board rotation at every Annual General Meeting (“AGM”) such
maintains its target of at least 30% women directors on that each Director shall retire from office once in every
the Board by 2021. In addition, the Board also aims to three (3) years, and are eligible to offer themselves for re-
achieve its target to have at least half of its composition election. The Constitution also provides that a Director who
comprising independent directors by 2021. is appointed during the year shall be subject to re-election
at the next AGM to be held following his appointment.
3. Remuneration
The Board has in place in a Remuneration Policy which is clear and transparent, designed to support and drive business
strategy and long-term objectives of the Company. In this regard, the NRC is responsible to formulate and review the
remuneration policies for the Non-Executive Directors and Senior Management of the Company to ensure the same remain
competitive, appropriate, and in alignment with the prevalent market practices.
A review of the Executive Directors’ and Non-Executive Directors’ remuneration is undertaken annually.
Remuneration details of the Directors for the financial year ended 31 December 2018 for the Company are as follows:
Director Fees Other Fees Salaries Bonuses EPF and other allowances Total
Executive Directors
#
Datuk Kamarudin bin Meranun – – 1,265,000 – 149,000 1,414,000
#
an Sri Anthony Francis
T
– – 1,200,000 – 149,000 1,349,000
Fernandes
Non-Executive Directors
Mr. Lim Kian Onn 95,000 – – – 10,000* 105,000
Dato’ Fam Lee Ee 125,000 – – – 18,000* 143,000
Tan Sri Rafidah Aziz 255,000 – – – 18,000* 273,000
Tan Sri Asmat bin Kamaludin 95,000 – – – 9,000* 104,000

Dato’ Yusli bin Mohamed Yusoff 145,000 – – – 19,000* 164,000
The basic Board fee shall be RM65,000.00 each per annum.

The basic Board Chairman fee shall be RM165,000.00 per annum.
* The meeting allowance shall be RM1,000.00 per meeting.
#
Re-designated to Non-Executive Director on 1 November 2018.

The Digital Airline
Corporate Governance OVERVIEW STATEMENT
4. Board Committees
To assist the Board in discharging its duties, the Board has established a number of Board Committees whose
compositions and terms of reference are in accordance with the Bursa Malaysia’s MMLR of Bursa Malaysia and consistent
with the recommendations of the MCCG. These Board Committees are:
(a) Audit Committee (“AC”); (c) Risk Management Committee (“RMC”); and
(b) NRC; (d) Safety Review Board.
The composition of the Board Committees and the attendance of members at Board Committees meeting held in the year
2018 are as follows:
Director Board AC NRC RMC SRB

Senior Independent Non-Executive Chairman 5/5 5/5 4/4 4/4
Datuk Kamarudin bin Meranun

(Re-designated from the existing position as Non-Independent Executive Director and
Group Chief Executive Officer to Non-Independent Non-Executive Director on
1 November 2018) 5/5 0/4
Tan Sri Anthony Francis Fernandes

(Re-designated from the existing position as Non-Independent Executive Director and
Co-Group Chief Executive Officer to Non-Independent Non-Executive Director on
1 November 2018) 5/5
Mr. Lim Kian Onn

Non-Independent Non-Executive Director 5/5 5/5
Dato’ Fam Lee Ee

Non-Independent Non-Executive Director 5/5 5/5 4/4 4/4

Independent Non-Executive Director 4/5 5/5
Dato’ Yusli bin Mohamed Yusoff

Independent Non-Executive Director 5/5 5/5 5/5 4/4
5. Limits of Authority 6. Review and adopting a strategic 7. Succession Planning

plan
The Limits of Authority (“LOA”) The Company places strong
is in place and defines decision Every quarter, the AC and the emphasis on the development
making limits for each level of Board reviewed the operational and of Allstars and growing the
management within the Group as financial performance of the next generation of leaders. The
disclosed in the Statement of Risk Company as well as each Joint organisation structure reflects
Management and Internal Control. Venture and Associate under the the drive to continuously groom
Approving authorities cover various Group. A detailed report on the successors across the group, in
levels of management and includes airlines within the Group is tabled the spirit of One AirAsia. Building
the Board. The LOA is reviewed for review and deliberation on capability is crucial; there is a
regularly and any amendments their performance against budget Group Talent Policy in place to
made to the LOA must be tabled and corresponding quarter of the identify and build a robust group
to and approved by the Board. The preceding year. This would enable talent pipeline. The talent pipeline
latest version of LOA was approved the Board to continually assess includes fresh graduates and
by the Board in July 2018. the performance of the Group, middle management, to ensure
progress of initiatives and projects. continuous supply of top talent.
Group strategy meeting is chaired The Group People & Culture
by the Group Chief Executive (“PAC”) Department works closely
Officer, and he updates the Board with the senior management
every quarter on the progress team in annual Talent Reviews
of the Group's strategy and new to map talent needs across the
initiatives, if any. Company’s locations and identify
future leaders, and the PAC Team

oversees structured talent entry and development initiatives, including leadership development programs, coaching, cross-
functional and cross-country assignments. In testament to the philosophy of growing its next generation of leaders, Tan
Sri Anthony Francis Fernandes and Datuk Kamarudin bin Meranun were re-designated from the Group Chief Executive
Officers to Non-Executive Directors of the Company, and the Company had appointed Nadda Buranasiri as the Group
Chief Executive Officer of the Company effective 1 November 2018.
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT

1. Audit Committee
The AC comprises of two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive
Director. It is chaired by Dato’ Yusli bin Mohamed Yusoff, who is an Independent Non-Executive Director and not the
Chairman of the Board. The Company has a policy which requires a former key audit partner to observe a cooling-off
period of at least two (2) years before being appointed as a member of the AC.
In the annual assessment on the suitability, objectivity and independence of the external auditors, the AC is guided
by the factors as prescribed under Paragraph 15.21 of the MMLR of Bursa Malaysia as well as the Company’s External
Auditor Independence Policy.
The composition of AC is reviewed annually to ensure the Chairman and members are financially literate and are
able to carry out their duties in accordance with the Terms of Reference of the AC. The AC members are expected to
update their knowledge continuously and enhance their skills.
Based on the performance evaluation for the AC for the financial year ended 31 December 2018, the Board is satisfied
that the Chairman and members of the AC have discharged their responsibilities effectively.
2. Risk Management and Internal Control Framework

The Company established the RMC in August 2017. The RMC oversees the risk management matters of the Group.
It supports the Board in fulfilling its responsibility for identifying significant risks. It also implements and maintains
sound Enterprise Risk Management (“ERM”) frameworks to manage the overall risk exposure of the Group. AAX’s ERM
frameworks aim to identify, assess, manage and monitor the Group’s strategic, financial, operational and compliance
risks. It covers the following key features:
(a) Roles and responsibilities of the (b) Guidance on the risk (c) Guidance on risk register and
RMC, Group Risk Department, management process and the controls assessment.
Management and the business associated methodologies and
units; tools; and
With regards to the internal control framework, the Company’s internal control is designed to manage the Company’s
risk within acceptable risk profile, and provides reasonable assurance against material errors, misstatement or
irregularities. In view of the limitations inherent in any system of internal control, such a system is designed to mitigate
rather than eliminate risks of failure to achieve corporate objectives. Accordingly, the system provides reasonable and
not absolute assurance against material error, misstatement or loss. The system of internal control covers, inter alia,
risks management, financial, operational and compliance controls. The Board confirms that the system of internal
control and risk management of the Company was in place during the financial year.
Based on the performance evaluation for the RMC for the financial year ended 31 December 2018, the Board is satisfied
that the Chairman and members of the RMC have discharged their responsibilities effectively.
The Statement on Risk Management and Internal Control is set out on pages 128 to 133 of the Annual Report 2018.

The Digital Airline
Corporate Governance OVERVIEW STATEMENT
PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS
1. Effective Communication with 2. AGM 3. Professional Development of

Shareholders and Investors Directors
The AGM is another avenue for
The Company is dedicated in shareholders to interact with During the year, the Directors
maintaining good communications the senior management of the were accorded with opportunities
with shareholders and investors Company. Shareholders will be to continue professionally to
through communication channels notified of the meeting date and develop and maintain their skills
such as the Annual Report, time together with an e-copy of and knowledge. The Directors
Financial Announcements and the Company’s Annual Report at attended a range of training
Key Operating Statistics and least 28 days before the meeting programmes to keep themselves
Announcements through Bursa is held. At the Twelfth (“12th”) abreast of legislative changes
Malaysia and AGMs. Senior AGM of the Company held on 4 and industry practices. The Board
management that is supported June 2018, all members of the was satisfied with the type of
by the Investor Relations Team, Board were present to respond training programmes the Directors
participate actively in investor to questions raised by the attended throughout the year.
relations activities that consist of shareholders or proxies. The Chief
road shows, conferences, quarterly Executive Officer delivered a brief
investor briefings locally and presentation on the Company’s
globally with financial analysts, financial performance and the
institutional investors and fund outlook. The voting at the 12th
managers. AGM was conducted through
electronic poll voting system and
The Company continues to fulfil was scrutinised by an independent
its duty on disclosure obligation scrutineer. The Company continues
required upon the Company to explore the leveraging of
according to the guidelines and technology, to enhance the
regulation of Bursa Malaysia’s quality of engagement with its
Corporate Governance Guidelines. shareholders and facilitate further
All disclosure of material corporate participation by shareholders at
information will be disseminated AGMs of the Company.
in an accurate, a clear and timely
manner via Bursa Malaysia
announcement.
The Company is embarking on

its integrated reporting journey
to develop a strategic corporate
reporting approach. The
Company aims to produce a fully
integrated annual report based
on the International Integrated
Reporting Council’s International
Integrated Reporting Framework
in the future.

The list of training programmes that were attended by the Board members are outlined below:
Name Programmes
Tan Sri Rafidah Aziz • Tan Sri Rafidah Aziz is a speaker at various conferences and
symposiums
Datuk Kamarudin bin Meranun • Competitive Malaysia Series organised by Ansara Malaysia in
collaboration with Malaysia Productivity Corporation
• Boeing Asia Pacific Airlines Symposium 2018
Tan Sri Anthony Francis Fernandes • World Economic Forum Annual Meeting 2018, Davos
• Visa Asia Pacific Senior Client Council Meeting, Seoul
• Sarawak Dialogue, Kuching
• Money20/20 Asia, Singapore
• ASEAN Australia Business Summit, Sydney
• Credit Suisse Asian Investment Conference, Hong Kong
• Deconomy 2018, Seoul
• Pitch@Palace 9.0, London
• Global Forum on Remittances, Investment and Development 2018, Asia-
Pacific organised by Bank Nagara Malaysia in collaboration with the
International Fund for Agricultural Development and the World Bank
Group
• ASEAN Business Club & CARI Roundtable, Kuala Lumpur
• Pampanga Chamber of Commerce and Industry, Inc., Manila
• Milken Institute Global Conference 2018, Singapore
• Google Cloud Next London 2018, London
• Bloomberg New Economy Forum, Singapore
• Credit Suisse Young Investors Organisation, Phuket
• Vietnam Economic Forum 2018, Hanoi
Dato’ Fam Lee Ee • Speaker at Malaysia-Guangdong Chamber of Investment Promotion

10th Anniversary Forum
• International Digital Economy Summit at Shijiazhuang, Hebei Province,
PRC
• Company Law 2018 in-house training
• Blockchain, Artificial Intelligence & 5G Seminar by Mr. Manro, Head of
Google Asia-Pacific
• The Digital Entrepreneurship: Ignite Your Entrepreneurship Within
organised by Malaysia-China Business Council
Tan Sri Asmat bin Kamaludin • Directors’ programmes organised by Panasonic
Dato’ Yusli bin Mohamed Yusoff • “What’s new in Procurement Governance?” organised by the Malaysian
Institute of Corporate Governance
• “Malaysian Code of Corporate Governance” organised by Symphony
Digest
• “Resolving Conflict in the Boardroom” organised by ICLIF Leadership &
Governance Centre
Mr. Lim Kian Onn • Anti-Money Laundering, Terrorism Financing & Proliferation Financing
organised by Libra Invest Berhad
• Cyber Risk Awareness organised by Libra Invest Berhad
This Corporate Governance Overview Statement was approved by the Board of AAX on 28 March 2019.

The Digital Airline
Statement on Risk Management

& Internal Control
AirAsia X Berhad (“AAX”) is committed to maintaining a comprehensive and robust risk
management and internal control system as part of our corporate governance and in line with
best practices. The Board is guided by the requirements set out within Paragraph 15.26 (b) of the
Main Market Listing Requirements (“MMLR”) issued by Bursa Malaysia Securities Berhad (“Bursa
Malaysia”) as well as the Malaysian Code on Corporate Governance (“MCCG”) 2017 released by the
Securities Commission Malaysia. The following statement outlines the nature and scope of the
Group’s internal controls and risk management framework in 2018.
RESPONSIBILITIES
The Board
The Board is committed to implementing and maintaining a robust risk management and internal control environment and
is responsible for the system of risk management and internal control. The Board acknowledges that the risk management
and internal control systems are designed to manage and minimise risks as it may not be possible to totally eliminate the
occurrence of unforeseeable circumstances or losses.
Audit Committee
The Audit Committee (“AC”) evaluates the adequacy and effectiveness of the system of internal controls through a review of
the results of work performed by the Internal Audit Department (“IAD”) and External Auditors and discussions with key Senior
Management.
The AC was established by the Board in 2013. The AC comprises of three (3) members of the Board, majority of whom are
Independent Directors. The AC Report is disclosed in pages 134 to 135 of this Annual Report.
The duties and responsibilities of the AC are set out in its Terms of Reference which is published on AAX corporate website
(http://airasiax.listedcompany.com/home.html).
Risk Management Committee

The Board has delegated the governance of Group risk to the Risk Management Committee (“RMC”) and the RMC consists of
three (3) members, all of whom are Non-Executive Directors and of which a majority of whom are Independent Directors.
The RMC was established in August 2017, to enable the Board to undertake and evaluate key areas of risk exposures. The
primary responsibilities of the RMC are:
• To oversee and recommend the • To implement and maintain sound • To develop and inculcate a risk
Enterprise Risk Management ERM frameworks, which identify, awareness culture within the
(“ERM”) strategies, frameworks and assess, manage and monitor Company
policies of the Group the Group’s strategic, financial,
operational and compliance risks
In fulfilling its responsibilities in risk management, the RMC is assisted by the Group Risk Department (“GRD”).
Prior to the formation of the RMC, risks and mitigations were tabled at the AC. In line with good corporate governance, the
RMC was formed to specifically look at risk management.
This is in line with the Group’s commitment to effective management of risks.
Management
The Management is responsible for ensuring that policies and procedures on risk and internal control are effectively
implemented. The Management is accountable for identifying and evaluating risks and monitoring the achievement of business
goals and objectives within the risk appetite parameters approved by the Board.

Group Risk Department
The Risk Management Framework is coordinated by the GRD. The GRD develops risk policies, sets minimum standards, provides
guidance on risk related matters, coordinates risk management activities with other departments, as well as monitors AAX’s
business risks. The GRD’s principal roles and responsibilities are as follows:
01
Review and update risk management 02
methodologies, specifically those Provide risk management
related to identification, measuring, training and workshops
controlling, monitoring and reporting
of risks
The GRD’s
principal roles and
responsibilities
03
05 Review risk profiles and
Monitor action plans for mitigation plans of business units
managing critical risks
04
Identify and inform the RMC and
Management of critical risks faced
by the Group
Internal Audit Department (IAD)

IAD regularly reviews AAX’s systems of internal controls and evaluates the adequacy and effectiveness of the controls, risk
management and governance processes implemented by Management. It integrates a risk-based approach in determining the
auditable areas and frequency of audits. The annual audit plan for AAX is reviewed and approved by the AC.
IAD is guided by its Internal Audit Charter approved by AC that provides independence & reflects the function and
responsibilities of the department. For any significant gaps identified in the governance processes, risk management
processes and controls during the engagements, IAD provides recommendations to Management to improve their design and
effectiveness of controls where applicable. The IA function is disclosed in the AC Report in pages 134 to 135 of this Annual
Report.
RISK MANAGEMENT FRAMEWORK

The ERM Framework standardises the process of identifying, evaluating and managing significant risks faced by the Group for
the year under review.
The Group has established a structured process for risk

The ERM Framework covers the following key features: management and reporting within the ERM Framework as
follows:
• Roles and responsibilities of the RMC, GRD, • The first line of defence is provided by Management
Management and business units and business units which are accountable for
identifying and evaluating risks under their respective
• Guidance on the risk management processes and
areas of responsibilities
associated methodologies and tools
• The second line of defence is provided by the GRD
• Guidance on risk register and controls assessment
and RMC which are responsible for facilitating and
monitoring risk management process and reporting
• The third line of defence is provided by the IAD

which provides assurance on the effectiveness of the
ERM framework

The Digital Airline
Statement on Risk Management & Internal Control
RISK MANAGEMENT INITIATIVES IN 2018

The Group made significant efforts to improve and enhances its risk management and internal control systems in 2018 through
the following initiatives:
• Robust awareness sessions for all • Focused risk assessment sessions • Review of risk parameters to
business units across the Group to ascertain key risk and mitigation quantify potential risks
plans
SIGNIFICANT RISKS
RISK MITIGATION ACTION
STRATEGIC RISKS
Sales Shocks - Changes in demand caused by events such The Commercial Department conducts periodic market
as political unrest or market downturns could impact our analysis and coordinates responses to market events. AAX
revenue stream significantly has also launched low-fare promotions from time to time to
generate sales in periods of low demand.
Competition - Intense competition from expansion of Strategic network expansion into greenfield markets to
competitor’s network and price erosion stemming from achieve “first entrant” incentives such as lower airport
price wars charges. We also utilise revenue modelling to lower price
points for targeted routes to maximise profitability.
Negative Publicity - Reputational risk that stems from AAX conducts annual brand health assessments the results
widespread social networks that have acted as platforms of which have been used to execute positive public relation
for airing consumer grievances or anti-sentiment actions including targeted marketing campaigns.
campaigns.
OPERATIONAL RISKS
System Outages - Outages of mission-critical systems AAX has developed, implemented and tested systems-
required for the continuity of flight operations and specific backup and failovers to reduce the impact of
revenue channels have occurred more frequently in the systems outages. We have also developed an IT Emergency
commercial aviation industry over the past 12 months Response Plan and a complementary Group Operational
resulting in significant losses to the affected airlines. Response Plan to ensure that the business continues to run
in the event of a critical systems outage.
Supply Chain - Failure in airport services such as airport AAX has created incident-specific business continuity plans
fueling systems, baggage handling systems or customs, for our main hubs while partnering closely with airport
immigration and quarantine processing could lead to operators and authorities.
significant delays and business disruption.
FINANCIAL RISKS
Fuel Price Risk - A surge in fuel price would have a AAX is exposed to jet fuel price risk arising from fluctuations
significant impact on AAX’s profits with fuel making up in the prices of jet fuel. AAX relies on a related party
one of the key cost components for operations. who has a large fleet size of its own for the monitoring,
contracting and hedging of its fuel price.
Foreign Currency Risk - Unexpected massive currency These exposures are managed by natural hedges that arise
depreciation, in particular the Malaysian Ringgit to the when payments for foreign currency are matched against
US Dollar, will have a detrimental effect on the cost of receivables denominated in the same foreign currency,
financing for AAX. or whenever possible by intra-group arrangements and
settlements.

RISK MITIGATION ACTION
CYBER SECURITY RISKS
Cyber Threats - AAX is exposed to cyber threats due to Group ICT has a dedicated security team focused on
our heavy focus on online sales channels, guest feedback, detecting, containing and remediating cyber threats.
help channels and other digital solutions.
We have achieved ISO/IEC 27001 Information Security
Management System (“ISMS”) certification for our systems and
follow this global standard via our processes and procedures.
The team and technology partners perform regular security

assessments, penetration tests and source code reviews
on our systems to ensure cyber resilience. The team uses
various technologies/tools to mitigate emerging threats
and constantly assess and implement new technology to
address the fact that cyber threats are constantly evolving.
COMPLIANCE RISKS
Non-Compliance to Regulatory Requirements - AAX AAX maintains a high level of engagement with local
must meet regulatory requirements of local aviation and regulators and authorities to ensure any new regulatory
consumer authorities in multiple jurisdictions. requirement is understood and swiftly adhered to. In
addition, we constantly monitor the local regulatory
landscape for new or amended regulations affecting the
Group.
Data Governance - AAX must ensure that data governance The Group has established a data governance working
and associated regulations are fully adhered to. group in 2018 to review existing policies and ensure
compliance to laws, regulations and best practices.
SAFETY RISK
General Safety Risk Exposure - Our exposure to Although air travel remains the safest mode of transport,
operational safety hazards and risks may increase as we airlines are constantly exposed to certain unavoidable risks.
grow our routes, flights and passenger volume. These risks are identified, assessed and managed to an
As Low As Reasonably Practicable (ALARP) level where
necessary mitigation actions are implemented through our
robust Safety Management System.
The Safety Review Board (SRB) oversees AAX's safety

performance, not only to ensure all safety targets are met
but the highest safety and quality standards are upheld
throughout the Group. New safety risk management
initiatives such as centralised use of operational safety data,
expansion of safety performance indicators and improving
procedures in relation to dangerous goods handling ensure
that our operational risks are always kept to an acceptable
level.
In addition to routine audits conducted by respective AOC's

Civil Aviation Authority, who issues operating licenses to
airlines, AAX and Thai AirAsia X are also certified with IATA
Operational Safety Audit (IOSA), which is an internationally
recognised and accepted evaluation system designed to
assess the operational management and control systems of
airlines.
SUSTAINABILITY RISK
Environmental Risk – The Group is subject to The Group has established a dedicated Environmental Affairs
environmental regulations and other environment-related team within the Group Sustainability team to steer the
schemes such as the Carbon Offsetting and Reduction Group towards proactive participation in global sustainability
Scheme for International Aviation (CORSIA) matters and ensure compliance to environmental regulatory
requirements.

The Digital Airline
Statement on Risk Management & Internal Control
INTERNAL CONTROL FRAMEWORK
The following key internal control structures (including audit committee & internal audit department disclosed above) are in
place to assist the Board to maintain a proper internal control system:
Board Governance Segregation of Duties People Management

Segregation of duties is embedded
The Board has governance over AAX acknowledges that robust risk
in the key business processes.
the Group’s operations. The Board management and internal control
The Group has in place a system
is kept updated on the Group’s system is dependent on its employees
to ensure there are adequate
activities and operations on a timely applying responsibility, integrity
risk management, financial and
and regular basis through Board and good judgment to their duties.
operational policies and procedures.
meetings with a formal agenda on As such, AAX has in place policies
matters for discussion. Other Board and procedures that govern its
Committees, namely the AC, RMC, recruitment, appointment, performance
Nomination and Remuneration management, compensation and
Committee and Safety Review reward mechanisms as well as
Internal Policies and Procedures
Board are established to assist policies and procedures that govern
the Board execute its governance Policies, procedures and processes discipline, termination and dismissal of
responsibilities as delegated by governing the Company’s businesses employees.
the Board. Further information and operations are documented
on the various Board Committees and made readily available to
is included in the Corporate employees across the Company on
Governance Overview Statement the Company’s intranet portal. These Limits of Authority
from pages 122 to 127. policies, procedures and processes
AAX documented its Limits
are reviewed and updated by the
of Authority (“LOA”) clearly
business and functional units through
defining the level of authority and
a structured and standardised
responsibility in making operational
process of review to cater to changes
and commercial business decisions.
Senior Management Responsibilities in legal and regulatory requirements
Approving authorities cover various
as well as to the business and
Regular management and operation levels of management and the Board.
operational environment. The
meetings are conducted by Senior The LOA is reviewed regularly and
policies, procedures and processes
Management which comprises of any amendments must be tabled
are reviewed to ensure that
the Group Chief Executive Officer to and approved by the Board. The
appropriate controls are in place to
(“Group CEO”), Chief Executive latest version of LOA was approved
manage risks inherent to the business
Officer (“CEO”) and Heads of by the Board in July 2018.
and operations.
Department.
The Board of our associated

company includes our Insurance
representatives. Information on
Financial Budgets The Group undertakes adequate
the financial performance of this
insurance and maintains physical
associated company is provided A detailed budgeting process has
safeguards on assets to ensure these
regularly to the Management been established requiring all Heads
are sufficiently covered against any
and Board of the Company via of Department to prepare budgets
mishap that could result in material
regular management reports and and business plans annually for
losses. Specifically, AAX Aviation
presentations at Board meetings. deliberation and approval by the
Insurance provides coverage for the
Board. A reporting system on actual
following:
In respect of the joint venture performance against the approved
entered into by the Group, the budget is also in place, which requires
Management of the joint venture, explanations for significant variances
which consist of representations and action plans by Management to • Aviation Hull and Spares All
from the Group and other joint address these. Risks and Liability
venture partners, are responsible • Aviation Hull and Spares War
to oversee the administration, and Allied Perils (Primary and
operation and performance of Excess)
the joint venture. Financial and
• Aircraft Hull and Spares
operational reports of this joint
Deductible
venture are provided regularly to the
Management of the Company. • Aviation War, Hijacking and
other Perils Excess Liability
(Excess AVN52)

Information Security Code of Conduct Conclusion
Information Technology (“IT”) AAX has a Code of Conduct (“the The Board has received assurance
security protects information (data), Code”) which governs the conducts from the Group CEO, CEO and
the systems it is housed in, and of its employees. The Code sets out Chief Financial Officer of the Company
the users of these systems from the standards and ethics that all that the Company’s risk management
a wide range of threats as well employees are expected to adhere and internal control system is
as safeguards the confidentiality, to in the course of their work. It operating adequately and effectively,
integrity and availability of highlights AAX’s expectations on in all material aspects. For areas which
information. IT security in the Group their professional conduct which require improvement, action plans are
is achieved through a set of controls includes: being developed with implementation
which includes policies, standards, dates monitored by the respective
procedures, guidelines, organisation Heads of Department. The Board also
structures and software control • The environment inside and receives quarterly updates on key
functions. outside of workplace risk management and internal control
• The working culture matters through its Board Committees.
The Group acknowledges the Based on assurance received from
importance of leveraging on IT • Conflict of interest Management and updates from the
to promote effectiveness and • Confidentiality and disclosure Board Committees, the Board is of the
efficiency of business operations. of information view that AAX’s risk management and
Heavy reliance on IT exposes us to • Good practices and controls internal control system was operating
emerging cyber security threats, adequately and effectively during the
• Duty and declaration
hence AAX Cyber Risk Management financial year under review up to the
is in place to manage cyber security date of approval of this statement.
risk. The Cyber Risk Management The Code also sets out the
programme includes: circumstances in which an employee Our associate companies are in the
would be deemed to have breached process of fully adopting the Company’s
the Code after due inquiry and risk management and internal controls.
disciplinary actions that can be taken The disclosure in this statement does
• Establishing an Information against such an employee if proven not include the risk management and
Security Management System guilty. internal control practices of the AAX’s
to design, implement and material joint ventures.
maintain a coherent set of Whistle Blower Policy
policies and processes to
A Whistle Blower Policy was
manage information risks Review of the Statement by External
approved by the Board in the year
• Conducting penetration 2013 and introduced to all staff Auditors
tests, system vulnerability within the same year. The Policy As required by Paragraph 15.23 of the
assessments and reviews to provides a platform for employees MMLR of Bursa Malaysia, the External
minimise IT security incidents or third parties to report instances Auditors have reviewed this Statement
on unethical behaviour, actual or on Risk Management and Internal
suspected fraud or dishonesty, or Control. Their limited assurance review
a violation of the Company’s Code was performed in accordance with
of Conduct. The Whistle Blower Audit and Assurance Practice Guide
Policy includes protection for the (“AAPG”) 3 issued by the Malaysian
whistle-blowers from any reprisals Institute of Accountants. AAPG3 does
as a direct consequence on making not require the External Auditors to
such disclosures. It also covers form an opinion on the adequacy and
the procedures for disclosure, effectiveness of the risk management
investigation and the respective and internal control systems of the
outcomes of such investigations. Group.
AAX expects its employees to act in
the Company’s best interests and to This statement is in accordance with the
maintain high principles and ethical resolution of the Board of Directors of
values. AAX will not tolerate any AAX on 28 March 2019.
irresponsible or unethical behaviour
that would jeopardise its good
standing and reputation.

The Digital Airline
Audit Committee (“AC”) Report

A. COMPOSITION OF AC & ATTENDANCE OF MEETINGS
The AC is established by the Board of Directors (“Board”) and comprises three (3) non-executive members, a majority of
whom are independent non-executive directors, including the Chairman and none of them are an alternate director. The
Chairman of AC is appointed by the Board and is not the Chairman of the Board.
The AC meets the requirement of paragraph 15.09(1)(c)(i) of the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad (“MMLR”), which stipulates that at least one (1) member of the AC must be a qualified accountant.
The duties and responsibilities of the AC are set out in its Terms of Reference, which is published on AirAsia X corporate
website (http://airasiax.listedcompany.com/home.html).
B. ACTIVITIES OF THE AC FOR 2018

A total of five (5) meetings were held during the financial year ended 31 December 2018 (“financial year”) and the details
of the attendance of the AC members are as follows:
Name Directorship Number of meetings attended
Dato’ Yusli bin Mohamed Yusoff Independent Non-Executive Director 5/5

– Chairman
Tan Sri Asmat bin Kamaludin Independent Non-Executive Director 5/5
Lim Kian Onn Non-Independent Non-Executive Director 5/5
The Head of Internal Audit of AAX attended the AC • The AC was also updated by the external auditors on
meetings to present the audit and investigation reports. changes to the relevant guidelines on the regulatory
Representing the senior management team, the Chief and statutory requirements.
Executive Officer (CEO) and Chief Financial Officer • Deliberated and reported the results of the annual
(CFO) were invited to attend all the AC meetings to audit for recommendation to the Board.
facilitate deliberations as well as to provide clarification
• Met with the external auditors without the presence
on the audit issues. Where required, the Management
of Management to discuss any matters that they may
of the audit subjects was also invited to provide an
wish to present.
explanation to the AC on specific control lapses and
issues arising from the relevant audit reports.
Internal Audit
In discharging its duties and responsibilities, the AC • Deliberated and approved the Internal Audit Plan
is guided by the AC Terms of Reference, which was for the financial year to ensure adequate scope and
approved by the Board and aligned with the provisions comprehensive coverage of audit as well as to ensure
of the MMLR, Malaysia Code of Corporate Governance the audit resources are sufficient to enable Audit to
2017 and other best practices. A summary of the work of discharge its functions effectively.
the AC during the financial year is as set out below:
• Deliberated on the investigation reports and after
Financial Reporting having understood the case in details, directed the
Management to implement controls to strengthen the
• Reviewed and deliberated on the quarterly financial control environment and prevent recurrence.
announcements and annual audited financial
• Deliberated and approved the Audit Charter for
statements prior to submission to the Board for
Internal Audit Department.
consideration and approval.
• Reviewed the quarterly status reports on audit
External Audit finding and deliberated on the rectification actions
and timeline taken by the Management to ensure the
• The AC reviewed external auditor’s overall work plan control lapses are addressed and resolved promptly.
and recommended to the Board their remuneration,
• Reviewed the results of operational audit reports.
terms of engagement and considered in detail the
results of the audit, external auditor’s performance • Provided assistance to the appointed external auditor
and independence and the effectiveness of the overall in all oversight of the operational audits on each
audit process. quarterly review.
• Reviewed updates on the Malaysian Financial
Reporting Standards and how they will impact the Related Party Transactions
Company and has monitored progress in meeting the
• Reviewed the related party transactions entered into
new reporting requirements.
by the Company and its affiliates in conformity to the
established procedures in adherence to the MMLR.

C. INTERNAL AUDIT (“IA”) FUNCTION & SUMMARY OF WORK
AAX has an in-house IA Department (“IAD”) to assist the AC in carrying out its functions. The mission of IAD is to enhance
and protect the organisational value of AAX by providing risk-based and objective assurance, advice and insight. IAD
helps AAX accomplish its business objectives by bringing systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control framework and governance processes.
IAD is guided by its Internal Audit Charter approved by AC that provides independence & reflects the function and
responsibilities of the department. IAD reports functionally to AC and administratively to the CEO. IAD executives declare
yearly that they are free from any conflict of interest, which could impair their objectivity and independence.
IAD is a corporate member of the Institute of Internal Auditors (“IIA”) and carries out its audits in accordance with the
International Professional Practices Framework issued by the IIA.
The principal responsibility of IAD is to undertake regular and systematic reviews of the systems of internal controls to
provide reasonable assurance that the systems continue to operate efficiently and effectively. IAD adopts a risk-based
methodology to develop its audit plans by determining the priorities of the internal audit activities.
The audits cover the review of the adequacy of risk management, the strength and effectiveness of internal controls,
compliance to internal statutory requirements, governance and management efficiency, among others.
During the financial year, audit reviews were conducted on a risk-based Internal Audit Plan approved by the AC. The areas
reviewed include revenue management, marketing, finance, inventory management, ground operations and station audits.
The audit reports which provide the results of the audit conducted, as well as key control issues and recommendations are
highlighted and submitted to the AC for review and execution. The Management is to ensure that corrective actions are
implemented within the required time frame.
The AC reviews and approves the IA’s human resource requirements to ensure that the function is adequately resourced
with a competent and proficient internal auditor. The IA department is staffed by five (5) executives. The Head of Internal
Audit, Mr. Seng Kian Aik was appointed in April 2017. He is a member of Institute of Internal Auditors Malaysia and
Malaysian Institute of Certified Public Accountants. He is also a Chartered Accountant of Malaysian Institute of Accountants
and Chartered Accountants of Australia and New Zealand. Total operational costs of the IA department for the financial
year were RM577,375.

The Digital Airline
Additional Compliance Information

The information set out below is disclosed in compliance with the Main Market Listing Requirements (“MMLR”) of Bursa
Malaysia Securities Berhad (“Bursa Malaysia”) for the financial year ended 31 December 2018 for AirAsia X Berhad (“AAX” or
“the Company”):-
1. UTILISATION OF PROCEEDS FROM CORPORATE PROPOSAL

There were no corporate proposals during the financial year ended 31 December 2018.
2. MATERIAL CONTRACTS INVOLVING DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

There were no material contracts entered into by the Company and its subsidiaries involving directors’ and major
shareholders' interests still subsisting at the end of the financial year ended 31 December 2018.
3. AUDIT AND NON-AUDIT FEES

The audit and non-audit fees of the Company and its Group as below are also disclosed in the Audited Financial
Statements set out under Note 7 to the Financial Statements on page 184 of this Annual Report:-
Company Group
Audit Fees RM’000 RM’000
Audit fees paid to the External Auditors for the financial year ended 31 December 2018 398 551
Company Group
Non-Audit Fees RM’000 RM’000
Non-audit fees paid to the External Auditors for the financial year ended 31 December 34 34
2018 in connection with advisory related work
4. RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

At the Annual General Meeting (“AGM”) held on 4 June 2018, the Company had obtained shareholders’ mandate to allow
the Company and/or its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature
(“RRPT Mandate”).
The RRPT Mandate is valid until the conclusion of the forthcoming Thirteenth AGM of the Company to be held on 26 June
2019. The Company proposes to seek a renewal of the existing RRPT Mandate and a new RRPT Mandate at its forthcoming
Thirteenth AGM. The renewal of the existing RRPT Mandate and the new RRPT Mandate, if approved by the shareholders,
will be valid until the conclusion of the Company’s next AGM. Details of the RRPT Mandate being sought is provided in the
Circular to Shareholders dated 30 April 2019 sent together with the Annual Report. Pursuant to paragraph 10.09(2)(b) and
paragraph 3.1.5 of Practice Note 12 of the MMLR of Bursa Malaysia, details of the recurrent related party transactions of a
revenue or trading nature entered into during the financial year ended 31 December 2018 are as follows:
Transacting Class and relationship of the

No. Parties Nature of Recurrent Related Party Transaction Related Parties Actual value
1 EXPENSE
AirAsia Berhad Rights granted by AirAsia to our Company to Interested Directors RM8,530,027
(“AirAsia”) operate air services under the “AIRASIA” trade Tan Sri Anthony Francis
(Company No.: name and livery in respect of our low-cost, Fernandes (“Tan Sri Tony”)
284669-W)
long-haul air services. Datuk Kamarudin bin Meranun
(“Datuk Kamarudin”)
Dato’ Fam Lee Ee
(“Dato’ Fam”)
Interested Major Shareholders
AirAsia
Tune Group Sdn. Bhd.
(Tune Group) (Company No. 798868-P)
Tan Sri Tony
Datuk Kamarudin

2 AirAsia Provision of the following range of services by Interested Directors RM17,080,257

AirAsia to our Company: Tan Sri Tony
Datuk Kamarudin
(a) Commercial Dato’ Fam
– Sales and distribution
– Sales support Interested Major Shareholders
– Direct channel AirAsia
– Branding and Creative
Tune Group
• Protection of brand to ensure
Tan Sri Tony
proper public perception is built
Datuk Kamarudin
• Manage communication imagery,
sponsorships (e.g. sports and
youth marketing) and commercial
branding
• Creative includes graphic designs
supporting branding activities
– Web team: Manage, plan, build and
develop airasia.com website
– Marketing
– Ancillary
(b) Treasury
– Fuel procurement
– Fuel hedging
(c) Quality Assurance - Credit card fraud unit
(d) Cargo
(e) Manpower cost (affiliate of companies in
China)
(f) IT Internal Audits
(g) Ground Operations
(h) Group Inflight Ancillary
(i) Engineering
(j) Legal
(k) Operations Control Centre
(l) Corporate Quality
(m) Flight Attendant Department
(n) Innovation, Commercial and Technology
– Involves all services related to
information technology
3. Rokki Sdn. Supply of in-flight entertainment system, Interested Directors RM3,724,683

Bhd. hardware, software, content and updates by Tan Sri Tony
(“Rokki”) Rokki. Datuk Kamarudin
(Company No.:
935105-W)
Dato’ Fam

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
4. BIGLIFE Sdn. Purchase of loyalty points from BIGLIFE, which Interested Directors RM6,139,982
Bhd. operates and manages a loyalty program Tan Sri Tony
(formerly known branded as the BIG Loyalty Program. Datuk Kamarudin
as BIG Loyalty
Sdn. Bhd. and
Dato’ Fam
Think BIG Digital Lim Kian Onn (“Mr. Lim”)
Sdn. Bhd.)
(“BIGLIFE”) Interested Major Shareholders
(Company No.:
AirAsia
924656-U)
Tune Group
Tan Sri Tony
Datuk Kamarudin

The Digital Airline

5. Tune Insurance Payment to Tune Insurance of insurance Interested Directors RM12,934,102

Malaysia premiums collected on its behalf pursuant to Tan Sri Tony
Berhad (“Tune our Company’s role as a corporate agent of Datuk Kamarudin
Insurance”) Tune Insurance for the provision of AirAsia
(Company No.: Insure, a travel protection plan which provides Interested Major Shareholders
30686-K)
coverage for losses arising from, amongst AirAsia
others, personal accident, medical and Tune Group
evacuation, emergency medical evacuation Tan Sri Tony
and mortal remains repatriation, travel Datuk Kamarudin
inconvenience such as flight cancellation or loss
or damage to baggage and personal effects,
flight delay and on-time guarantee.
6. AirAsia SEA Provision of the following shared services by Interested Directors RM3,239,321
Sdn. Bhd. AASEA to our Company: Tan Sri Tony
(formerly known (a) Finance and accounting support operation Datuk Kamarudin
as AirAsia
services; Dato’ Fam
Global Shared
Services Sdn. (b) People department support operation
Bhd.) (“AASEA”) services; Interested Major Shareholders
(Company No.: (c) Information and technology operation AirAsia
1045172-A) support services; and Tune Group
(d) Sourcing and procurement operation Tan Sri Tony
support services. Datuk Kamarudin
7. Yummy Provision of food catering services at the Interested Directors RM1,485,861

Kitchen Sdn. AAX airport lounge located at Kuala Lumpur Tan Sri Tony
Bhd. International Airport 2 (klia2) Datuk Kamarudin
(Company No.: Mr. Lim
1174912-W)

Tan Sri Tony
Datuk Kamarudin
Mr. Lim
8. PT Indonesia Provision of ground handling services for AAX Interested Directors NIL
AirAsia (“IAA”) flights in and out of Indonesia Tan Sri Tony
(Company No.: Datuk Kamarudin
30.06.1.51.07399)
Dato’ Fam

AirAsia
Tan Sri Tony
Datuk Kamarudin
9. Ground Team Provision of ground handling services by GTR Interested Directors RM21,894,402
Red Sdn. Bhd. to AAX at Kuala Lumpur International Airport Tan Sri Tony
(“GTR”) 2 (klia2) and diversion airports at Penang and Datuk Kamarudin
(Company No.: Langkawi, if required Dato’ Fam
800730-V)

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin

REVENUE / INCOME
1. AirAsia Provision of charter services to Beirut, Interested Directors NIL

Lebanon by our Company for the Malbatt Tan Sri Tony
contingent. The carried passenger services Datuk Kamarudin
for a long-haul destination is provided to Dato’ Fam
AirAsia on an ad-hoc basis, whereby the
passengers are procured by AirAsia but Interested Major Shareholders
are carried by our Company. AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
2. Tune Insurance Receipt of commission income of 25% on Interested Directors RM3,233,526

all insurance premiums received by Tune Tan Sri Tony
Insurance pursuant to our Company’s role Datuk Kamarudin
as a corporate agent of Tune Insurance
for the provision of AirAsia Insure, a travel Interested Major Shareholders
protection plan which provides coverage AirAsia
for losses arising from, amongst others, Tune Group
personal accident, medical and evacuation, Tan Sri Tony
emergency medical evacuation and mortal Datuk Kamarudin
remains repatriation, travel inconvenience
such as flight cancellation or loss or
damage to baggage and personal effects,
flight delay and on-time guarantee.
3. AirAsia Services provided by AAX to AirAsia for Interested Directors RM1,788,107

AAX airport lounge usage by AirAsia’s Tan Sri Tony
passengers. Datuk Kamarudin
Dato’ Fam

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
4. AirAsia Japan Co. Provision of the following commercial Interested Directors RM463,698
Ltd (“AAJ”) services by AAX to AAJ, including but not Tan Sri Tony
(Company No.: 1800- limited to: Datuk Kamarudin
01-113372)
Dato’ Fam
1. Line Operations Department; and
2. People Department Interested Major Shareholders

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
5. Philippines AirAsia Provision of the following commercial Interested Directors USD381,814

Inc. (“PAA”) services by AAX to PAA, including but not Tan Sri Tony (RM1,530,016)
(Registration No.: limited to: Datuk Kamarudin
A199707490)
Dato’ Fam
1. Airport management and group
handling; and
2. Government and regulatory liaison AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin

The Digital Airline
6. Thai AirAsia Provision of the following commercial Interested Directors RM314,697

Company Limited services by AAX to TAA, including but not Tan Sri Tony
(“TAA”) limited to: Datuk Kamarudin
(Company No.: Dato’ Fam
0105546113684) 1. Airport management and group
handling; and
2. Government and regulatory liaison AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
7. IAA Provision of the following commercial Interested Directors RM29,120

services by AAX and AAX Service Pty. Tan Sri Tony
Ltd. (Company No. 141 326 463) to IAA, Datuk Kamarudin
including but not limited to: Dato’ Fam
1. Airport management and group
handling; and
AirAsia
2. Government and regulatory liaison Tune Group
Tan Sri Tony
Datuk Kamarudin
8. BIGLIFE Revenue from ticket sales and/or other Interested Directors RM12,675,043
ancillary sales arising from redemption of Tan Sri Tony
loyalty points from BIGLIFE which operates Datuk Kamarudin
and manages a loyalty program branded as Dato’ Fam
the BIG Loyalty Program. Mr. Lim

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin
9. RedCargo Purchase of AAX’s cargo transportation Interested Directors RM88,407,366

Logistics Sdn. Bhd. capacity by RedCargo on routes operated Tan Sri Tony
(“RedCargo”) by AAX Datuk Kamarudin
(Company No.: Dato’ Fam
1271940-D)

AirAsia
Tune Group
Tan Sri Tony
Datuk Kamarudin

The shareholdings of the interested Directors and interested Major Shareholders in our Company as at 20 March 2019 are
as follows:
Direct Indirect
No. of Shares % No. of Shares %
Interested Directors
Tan Sri Tony 111,587,228 2.69 1,310,331,376(1) 31.59
Datuk Kamarudin 370,709,939 8.94 1,310,331,376(1) 31.59
Dato’ Fam – – – –
Mr. Lim – – 175,833,356(2) 4.24
AirAsia 570,728,502 13.76 – –
Tune Group 739,602,874 17.83 – –
Tan Sri Tony 111,587,228 2.69 1,310,331,376(1) 31.59
Datuk Kamarudin 370,709,939 8.94 1,310,331,376(1) 31.59
Note:
(1) Deemed interested via their interests in AirAsia and Tune Group, being the Major Shareholders of our Company pursuant to Section 8 of the
Companies Act, 2016.
(2) Deemed interest via shareholdings of his spouse and children.
Please refer to Sections 2.3 and 7 of the Circulars to Shareholders dated 30 April 2018 and 30 April 2019 respectively on
the directorships and shareholdings of the interested directors and interested major shareholders in the transacting parties
as stated above.

The Digital Airline
Code of Business Conduct

OBJECTIVES
The objective of AAX is to engage efficiently, responsibly and profitably in the commercial aviation business. AAX seeks a
high standard of performance and aim to maintain a long-term position in its respective competitive environments.
RESPONSIBILITIES
AAX recognises five areas of responsibility:
To shareholders To employees To those with whom it does

business
To protect shareholders’ To respect the human rights of
investment, and provide an the employees, to provide the To seek mutually beneficial
acceptable return. employees with good and safe relationships with vendors,
conditions of work, and good and suppliers and in joint ventures
competitive terms and conditions of and to promote the application of
service, to promote the development these principles in so doing. The
To guests and best use of human talent and ability to promote these principles
equal opportunity employment, effectively will be an important
To win and maintain guests by
and to encourage the involvement factor in the decision to enter into
developing and providing services
of employees in the planning and or remain in such relationships.
which offer value in terms of
price, quality and safety, which are direction of their work, and in the
supported by the operations and application of these principles
commercial expertise. within AAX. It is recognised that
commercial success depends on the To society
full commitment of all employees. To conduct business as responsible
corporate members of society, to
observe the laws of the countries in
which AAX operates, to express
support for fundamental human
rights in line with the legitimate
role of business.
These five areas of responsibility are seen as inseparable. Therefore it is the duty of management continuously to assess
the priorities and discharge its responsibilities as best it can on the basis of that assessment.
ECONOMIC PRINCIPLES
Profitability is essential to discharging these responsibilities and staying in business. It is a measure both of efficiency
and of the value that guests place on AAX services. It is essential for AAX to maintain low operational unit cost without
compromising Flight Safety Standards to be able to consistently provide low cost fares to guests. Without profits and a
strong financial foundation it would not be possible to fulfil the responsibilities outlined above.
BUSINESS INTEGRITY
AAX insists on honesty, integrity and fairness in all aspects of its business and expect the same in its relationships with all
those with whom it does business. The direct or indirect offer, payment, soliciting and acceptance of bribes in any form are
unacceptable practices. Employees must avoid conflicts of interest between their private financial activities and their part
in the conduct of company business. All business transactions on behalf of AAX must be reflected accurately and fairly in
the accounts of the company in accordance with established procedures and be subject to audit.
POLITICAL ACTIVITIES
AAX acts in a socially responsible manner within the laws of the countries in which it operates in pursuit of its legitimate
commercial objectives. AAX does not make payments to political parties, organisations or its representatives or take
any part in party politics. However, when dealing with governments, AAX has the right and the responsibility to make its
position known on any matter which affects themselves, its employees, its guests, or its shareholders. AAX also has the
right to make its position known on matters affecting the community, where it has a contribution to make.

HEALTH, SAFETY AND THE ENVIRONMENT
Consistent with AAX’s commitment to maintain low operational cost, AAX will ensure that in doing so, it will not compromise
Flight Safety Standards.
To this end AAX manages these matters as any other critical business activity, set targets for improvement, and measure,
appraise and report performance.
THE COMMUNITY
The most important contribution that companies can make to the social and material progress of the countries in which
they operate is in performing their basic activities as effectively as possible. In addition, AAX takes a constructive interest
in societal matters which may not be directly related to the business. Opportunities for involvement - for example through
community, educational or donations programmes – will vary depending upon the size of the company concerned, the
nature of the local society, and the scope for useful private initiatives.
COMPETITION
AAX supports free enterprise. It seeks to compete fairly and ethically and within the framework of applicable competition
laws; AAX will not prevent others from competing freely with it.
COMMUNICATION
AAX recognises that in view of the importance of the activities in which they are engaged and the impact on national
economies and individuals, open communication is essential. To this end, AAX has comprehensive corporate information
programmes and provides full relevant information about its activities to legitimately interested parties, subject to any
overriding considerations of business confidentiality and cost.
PERSONAL DATA PROTECTION

AAX recognises the importance of personal data protection. AAX undertakes that the personal information provided by its
guests through AirAsia’s website will only be used to purposes for which the personal information was originally requested
and for directly related purposes unless AAX is required or authorised under law to disclose such personal information or
written consent allowing disclosure of such personal information is given by our guests.
AAX also undertakes to not sell the name and/or personal data of our guests to third parties.

ALPHA
B R AV O
COLLINS
We are Collins Aerospace. With our customers,

we chart new journeys and reunite families.
We protect nations and save lives. We fuse
intelligence and partnership to tackle the
toughest challenges in our industry. And, every
day, we imagine ways to make the skies and
spaces we touch smarter, safer and more
amazing than ever.
UTC Aerospace Systems and Rockwell Collins

are now Collins Aerospace.
TOGETHER, WE ARE
R E D E F I N I N G A E R O S PA C E
collinsaerospace.com
© 2019 Collins Aerospace, a United Technologies company. All rights reserved.
financAIRASIA X BERHAD
AAX_AR/18
FINANCIAL STATEMENTS
148 Directors’ Report

152 Statements of Profit or Loss
153 Statements of Comprehensive Income
154 Statements of Financial Position
158 Consolidated Statement of Changes in Equity
159 Statement of Changes in Equity
160 Statements of Cash Flows
162 Notes to The Financial Statements
232 Statement by Directors
232 Statutory Declaration
233 Independent Auditors’ Report

ial
statements
OTHER INFORMATION
238 Analysis of Shareholdings

239 List of Directors’ Shareholdings
240 List of Top 30 Largest Shareholders
241 Analysis of Warrant Holdings
242 List of Directors’ Warrant Holdings
243 List of Top 30 Largest Warrant Holders
244 Corporate Directory
246 Notice of Annual General Meeting
249 Glossary
• Form of Proxy

The Digital Airline
Directors’ Report
The Directors hereby present their report together with the audited financial statements of the Group and of the Company
for the financial year ended 31 December 2018.
PRINCIPAL ACTIVITIES
The principal activity of the Company is that of providing long haul air transportation services.
The principal activities of the subsidiaries, associate and joint venture are disclosed in Notes 14, 15 and 16 to the financial statements.
FINANCIAL RESULTS
Group Company
RM’000 RM’000
Loss for the financial year (301,482) (302,777)
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the
financial statements.
In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year
were not substantially affected by any item, transaction or event of a material and unusual nature.
ISSUE OF SHARES AND DEBENTURES

During the financial year, 375 warrants were exercised and converted to 375 ordinary shares at an exercise price of RM0.46
per share. Total issued and paid up share capital at the end of the financial year was RM1,534,043,217 (2017: RM1,534,043,045).
These new shares rank pari passu with the existing ordinary shares.
DIRECTORS
The names of the Directors of the Company in office since the beginning of the financial year to the date of this report are:

Datuk Kamarudin Bin Meranun
Dato’ Yusli Bin Mohamed Yusoff
Lim Kian Onn
Tan Sri Asmat Bin Kamaludin
Dato’ Fam Lee Ee
The names of the Directors of the Company’s subsidiaries in office since the beginning of the financial year to the date of
this report (not including those Directors listed above) are:
Jean Marc Kin Voon Likamtin

Benyamin Bin Ismail
Natacha Sabrina Kong Hung Cheong
Tommy Lo Seen Chong
Wong Mee Yen
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangement to which the
Company was a party, whereby the Directors might acquire benefits by means of the acquisition of shares in the Company
or any other body corporate.

Directors’ Report

DIRECTORS’ BENEFITS (CONT’D.)

Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than
benefits included in the aggregate amount of emoluments received or due and receivable by the Directors or the fixed salary
of a full-time employee of the Company as shown in Note 6 to the financial statements) by reason of a contract made by
the Company or a related corporation with any Director or with a firm of which he is a member, or with a company in which
the Director has a substantial financial interest, other than as disclosed in Note 31 to the financial statements.
INDEMNITY AND INSURANCE FOR DIRECTORS AND OFFICERS

The Directors and officers of the Company and its subsidiaries are covered under a Directors’ and Officers’ Liability Insurance
up to an aggregate limit of RM50 million against any legal liability, if incurred by the Directors and officers of the Company
and its subsidiaries in the discharge of their duties while holding office for the Company and its subsidiaries. The insurance
premium paid by the Company was RM180,000.
DIRECTORS’ REMUNERATION
The Directors’ remuneration are disclosed in Note 6 to the financial statements.
DIRECTORS’ INTERESTS
According to the Register of Directors’ Shareholdings, the interests of the Directors in office at the end of the financial
year in shares in the Company or its related corporations during and at the end of the financial year are as follows:
Number of ordinary shares
The Company 1.1.2018 Acquired Disposed 31.12.2018
Datuk Kamarudin Bin Meranun

Direct interest 337,702,739 33,007,200 – 370,709,939
Indirect interest* 1,135,887,338 174,444,038 – 1,310,331,376

Direct interest 87,303,728 24,283,500 – 111,587,228
Indirect interest* 1,135,887,338 174,444,038 – 1,310,331,376
Lim Kian Onn

Indirect interest** 175,833,356 – – 175,833,356

Direct interest 175,000 – – 175,000
Indirect interest*** 100,000 – – 100,000
Tan Sri Asmat Bin Kamaludin

Direct interest 297,400 – – 297,400
Indirect interest**** 40,000 – – 40,000
* Deemed interest by virtue of their shareholding interests in AirAsia Berhad and Tune Group Sdn Bhd pursuant to Section 8A of the Companies Act 2016.
** Pursuant to Section 59(11)(c) of the Companies Act 2016, the interests of spouse and children of Lim Kian Onn in the shares of the Company shall also be
treated as the interest of Lim Kian Onn.
*** Pursuant to Section 59(11)(c) of the Companies Act 2016, the interest of spouse (deceased) of Tan Sri Rafidah Aziz in the shares of the Company shall also
be treated as the interest of Tan Sri Rafidah Aziz.
**** Pursuant to Section 59(11)(c) of the Companies Act 2016, the interests of spouse and children of Tan Sri Asmat Bin Kamaludin in the shares of the
Company shall also be treated as the interest of Tan Sri Asmat Bin Kamaludin.
None of the other Directors in office at the end of the financial year had any interest in shares in the Company or its
related corporations during the financial year.

The Digital Airline
Directors’ Report

EMPLOYEES’ SHARE OPTION SCHEME (“ESOS”)

On 11 October 2017, the ESOS had expired and the Board of Directors had resolved that there shall be no further extension
and/or renewal on the ESOS.
At an Extraordinary General Meeting held on 12 October 2012, shareholders approved the Senior Executive Option Plan and
the General Employee Share Option Plan for the granting of non-transferable options that are settled by physical delivery
of the ordinary shares of the Company, to eligible senior executives and employees respectively.
The committee administering the Employee Share Option Plans comprise Datuk Kamarudin Bin Meranun, Benyamin Bin
Ismail and Varun Nhatia.
The tenure of the ESOS shall be five (5) years with an option to extend for a further five (5) years, subject to a maximum
duration of ten (10) years.
The salient features of the ESOS are disclosed in Note 28 of the financial statements.
As at the end of the previous financial year, the number of options outstanding under ESOS was NIL following the expiration
as approved by the Board of Directors.
None of the Directors were granted any options as they are not eligible to participate in the ESOS under the By-Law of
the Scheme.
OTHER STATUTORY INFORMATION

(a) Before the statements of comprehensive income and statements of financial position of the Group and of the Company
were made out, the Directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of
allowance for doubtful debts and satisfied themselves that there were no known bad debts and that adequate
allowance had been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records
in the ordinary course of business had been written down to an amount which they might be expected so to
realise.
(b) At the date of this report, the Directors are not aware of any circumstances which would render:
(i) it necessary to write off any bad debts or the amount of the allowance for doubtful debts in the financial statements
of the Group and of the Company inadequate to any substantial extent; and
(ii) the values attributed to the current assets in these financial statements of the Group and of the Company misleading.
(c) At the date of this report, the Directors are not aware of any circumstances which have arisen which would render
adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or
inappropriate.
(d) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or
the financial statements of the Group and of the Company which would render any amount stated in the financial
statements misleading.
(e) At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year
which secures the liabilities of any other person; or
(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.

Directors’ Report

OTHER STATUTORY INFORMATION (CONT’D.)

(f) In the opinion of the Directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of
twelve months after the end of the financial year which will or may affect the ability of the Group or of the
Company to meet their obligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the
financial year and the date of this report which is likely to affect substantially the results of the operations of the
Group or of the Company for the financial year in which this report is made.
SUBSEQUENT EVENTS
Details of subsequent events are disclosed in Note 37 to the financial statements.
AUDITORS AND AUDITORS’ REMUNERATION

The auditors, Ernst & Young, have expressed their willingness to continue in office.
Auditors’ remuneration are disclosed in Note 7 to the financial statements.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms
of its audit engagement against claims by third parties arising from the audit (for an unspecified amount). No payment has
been paid to indemnify Ernst & Young during or since the end of the financial year.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors dated 28 March 2019.
Tan Sri Rafidah Aziz Datuk Kamarudin Bin Meranun

Director Director
Kuala Lumpur, Malaysia

The Digital Airline
Statements of profit or loss

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Revenue 4 4,571,376 4,578,674 4,568,277 4,576,558

Operating expenses
– Staff costs 5 (422,845) (421,259) (412,383) (408,982)
– Depreciation of property, plant and equipment 13 (127,268) (109,338) (127,268) (109,338)
– Aircraft fuel expenses (1,876,060) (1,466,681) (1,876,060) (1,466,681)
– Maintenance and overhaul (485,389) (652,922) (485,389) (652,922)
– User charges (508,121) (508,507) (508,121) (508,507)
– Aircraft operating lease expenses (898,654) (944,599) (898,654) (944,599)
– Other operating expenses 7 (464,398) (413,811) (473,727) (422,668)
Other income 8 7,414 51,015 7,414 50,976
Operating (loss)/profit (203,945) 112,572 (205,911) 113,837

Finance income 9 55,773 33,204 55,773 33,204
Finance costs 9 (70,611) (61,224) (70,611) (61,224)
Net operating (loss)/profit (218,783) 84,552 (220,749) 85,817

Net foreign exchange gain 9 16,011 106,517 16,112 106,504
Share of results of an associate 15 – – – –
Share of results of a joint venture 16 – – – –
Other losses 10 (23,889) (4,265) (23,889) (4,265)
(Loss)/profit before taxation (226,661) 186,804 (228,526) 188,056
Taxation
– Current taxation 11 (918) (6,405) 172 (6,125)
– Deferred taxation 11 (73,903) (81,513) (74,423) (81,680)
(74,821) (87,918) (74,251) (87,805)
(Loss)/profit for the financial year (301,482) 98,886 (302,777) 100,251
(Loss)/earnings per share (sen)

– Basic 12 (7.3) 2.4
– Diluted 12 (7.3) 2.4
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Statements of comprehensive income FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
(Loss)/profit for the financial year (301,482) 98,886 (302,777) 100,251
Other comprehensive loss

Items that may be subsequently reclassified
to profit or loss
Cash flow hedges (98,374) (107,377) (98,374) (107,377)

Foreign currency translation differences (149) (17) – –
for the financial year, net of tax (98,523) (107,394) (98,374) (107,377)
Total comprehensive loss for the financial year (400,005) (8,508) (401,151) (7,126)

The Digital Airline
Statements of financial position

AS AT 31 DECEMBER 2018 (CONT’D.)
2018 2017
Group Note RM’000 RM’000
Assets
Non-current assets
Property, plant and equipment 13 624,964 1,595,903
Investment in an associate 15 – –
Investment in a joint venture 16 – –
Deferred tax assets 17 385,753 423,664
Trade and other receivables 20 1,714,195 1,513,349
Amount due from an associate 21 67,287 81,305
Amount due from a joint venture 21 – 44,010
2,792,199 3,658,231
Current assets
Inventories 19 13,257 8,518
Trade and other receivables 20 189,837 537,388
Amount due from an associate 21 – 28,969
Amount due from related parties 21 48,851 75,305
Derivative financial assets 18 – 23,094
Tax recoverable 806 –
Deposits, cash and bank balances 22 297,609 432,675
550,360 1,105,949
Non-current assets held for sale 23 999,012 –
1,549,372 1,105,949
Total assets 4,341,571 4,764,180
Equity and liabilities

Current liabilities
Sales in advance 676,245 714,586
Derivative financial liabilities 18 96,811 –
Trade and other payables 24 1,102,512 1,164,130
Provision for taxation – 782
Amount due to an associate 21 7,777 –
Amount due to a joint venture 21 – 122,827
Amount due to related parties 21 97,381 28,963
Borrowings 25 192,324 188,528
2,173,050 2,219,816
Net current liabilities (623,678) (1,113,867)

As at 31 December 2018 (CONT’D.)
2018 2017
Group Note RM’000 RM’000
Non-current liabilities
Trade and other payables 24 52,767 93,273
Borrowings 25 494,728 673,442
Provision for aircraft maintenance 26 1,013,689 789,043
1,594,859 1,555,758
Total liabilities 3,767,909 3,775,574
Net assets 573,662 988,606
Equity attributable to equity holders of the Company

Share capital 27 1,534,043 1,534,043
Warrant reserve 29 62,222 62,222
Other reserves 29 (99,169) (795)
Currency translation reserve 29 178
Accumulated losses (923,463) (607,042)
Total equity 573,662 988,606

The Digital Airline

2018 2017
Company Note RM’000 RM’000
Assets
Non-current assets
Property, plant and equipment 13 624,964 1,595,903
Investments in subsidiaries 14 * *
Investment in an associate 15 20,018 20,018
Investment in a joint venture 16 – –
Deferred tax assets 17 385,108 423,497
Trade and other receivables 20 1,714,195 1,513,020
Amount due from an associate 21 67,287 81,305
Amount due from a joint venture 21 – 44,010
2,811,572 3,677,753
Current assets
Inventories 19 13,257 8,518
Trade and other receivables 20 189,760 537,288
Amount due from a subsidiary 21 33,464 151,744
Amount due from an associate 21 15,662 –
Amount due from related parties 21 48,851 75,305
Derivative financial assets 18 – 23,094
Tax recoverable 1,641 –
Deposits, cash and bank balances 22 296,150 431,556
598,785 1,227,505
Non-current assets held for sale 23 999,012 –
1,597,797 1,227,505
Total assets 4,409,369 4,905,258
Equity and liabilities

Current liabilities
Sales in advance 676,245 714,586
Trade and other payables 24 1,099,787 1,160,773
Provision for taxation – 557
Amount due to a subsidiary 21 1,688 1,747
Amount due to an associate 21 56,902 122,775
Amount due to a joint venture 21 – 122,827
Amount due to related parties 21 99,723 30,587
Borrowings 25 192,324 188,528
2,223,480 2,342,380
Net current liabilities (625,683) (1,114,875)

2018 2017
Company Note RM’000 RM’000
Non-current liabilities
Trade and other payables 24 52,767 93,273
Borrowings 25 494,728 673,442
Provision for aircraft maintenance 26 1,013,689 789,043
1,594,859 1,555,758
Total liabilities 3,818,339 3,898,138
Net assets 591,030 1,007,120
Equity attributable to equity holders of the Company

Share capital 27 1,534,043 1,534,043
Warrant reserve 29 62,222 62,222
Other reserves 29 (99,169) (795)
Accumulated losses (906,066) (588,350)
Total equity 591,030 1,007,120
* Less than RM1,000

The Digital Airline
Consolidated statement of changes in equity

Attributable to equity holders of the Company
Cash flow Currency

Number Share Warrant hedge translation Accumulated Total
of shares capital reserve reserve reserve losses equity
Group Note ’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2018 4,148,148 1,534,043 62,222 (795) 178 (607,042) 988,606

Effects of adoption of
MFRS 9 and MFRS 15 2.27 – – – – – (14,939) (14,939)
At 1 January 2018 (As restated) 4,148,148 1,534,043 62,222 (795) 178 (621,981) 973,667
Net loss for the financial year – – – – – (301,482) (301,482)

for the financial year – – – (98,374) (149) – (98,523)
Total comprehensive loss
for the financial year – – – (98,374) (149) (301,482) (400,005)
At 31 December 2018 4,148,148 1,534,043 62,222 (99,169) 29 (923,463) 573,662
Attributable to equity holders of the Company
Cash flow Share Currency

Number Share Share Warrant hedge option translation Accumulated Total
of shares capital premium reserve reserve reserve reserve losses equity
Group Note ’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2017 4,148,148 622,222 911,821 62,222 106,582 2,558 195 (708,727) 996,873
Transfer to no-par value
regime – 911,821 (911,821) – – – – – –
Profit for the financial year – – – – – – – 98,886 98,886

Other comprehensive loss for
the financial year – – – – (107,377) – (17) – (107,394)
Total comprehensive (loss)/
income for the financial
year – – – – (107,377) – (17) 98,886 (8,508)
Employee Share Option
Scheme (“ESOS”) 28 – – – – – 241 – – 241
Transferred to accumulated
losses upon expiry of
ESOS – – – – – (2,799) – 2,799 –
At 31 December 2017 4,148,148 1,534,043 – 62,222 (795) – 178 (607,042) 988,606

Statement of changes in equity FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
Cash flow
Number Share Warrant hedge Accumulated Total
of shares capital reserve reserve losses equity
Company Note ’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2018 4,148,148 1,534,043 62,222 (795) (588,350) 1,007,120

Effects of adoption of MFRS 9 and MFRS 15 2.27 – – – – (14,939) (14,939)
At 1 January 2018 (As restated) 4,148,148 1,534,043 62,222 (795) (603,289) 992,181
Loss for the financial year – – – – (302,777) (302,777)

Other comprehensive loss for the financial year – – – (98,374) – (98,374)
Total comprehensive loss for the financial year – – – (98,374) (302,777) (401,151)
At 31 December 2018 4,148,148 1,534,043 62,222 (99,169) (906,066) 591,030
Cash flow Share

Number Share Share Warrant hedge option Accumulated Total
of shares capital premium reserve reserve reserve losses equity
Company Note ’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2017 4,148,148 622,222 911,821 62,222 106,582 2,558 (691,400) 1,014,005
Transfer to no-par value
regime – 911,821 (911,821) – – – – –
Profit for the financial year – – – – – – 100,251 100,251

for the financial year – – – – (107,377) – – (107,377)
Total comprehensive
(loss)/income for the
financial year – – – – (107,377) – 100,251 (7,126)
Employee Share Option
Scheme (“ESOS”) 28 – – – – – 241 – 241
Transferred to accumulated
losses upon expiry of
ESOS – – – – – (2,799) 2,799 –
At 31 December 2017 4,148,148 1,534,043 – 62,222 (795) – (588,350) 1,007,120

The Digital Airline
Statements of cash flows

Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities

Adjustments for:
Property, plant and equipment
– Depreciation 13 127,268 109,338 127,268 109,338
– Write off 13 7,844 431 7,844 431
– Loss on disposal 7 – 93 – 93
Allowance for impairment of trade and other
receivables 7 149,897 60,049 149,897 60,049
Bad debts written off 7 – 19 – 19
Finance income 9 (17,961) (20,344) (17,961) (20,344)
Finance costs 9 31,007 38,581 31,007 38,581
Discounting and accretion of interest on
deposits (net) 9 1,792 9,783 1,792 9,783
Fair value losses on derivative financial
instruments 10 23,889 4,265 23,889 4,265
Share option expense 5 – 241 – 241
Net unrealised foreign exchange gain 9 (2,100) (73,005) (2,201) (72,992)
Operating profit before working capital

changes 94,975 316,255 93,009 317,520
Changes in working capital:
Inventories (4,739) 5,633 (4,739) 5,633
Trade and other receivables (187,961) (492,524) (188,313) (492,170)
Related parties balances 77,324 47,205 77,982 48,452
Trade and other payables 168,598 427,664 169,769 425,485
Sales in advance (49,733) (11,180) (49,733) (11,180)
Cash flows generated from operations 98,464 293,053 97,975 293,740

Finance costs paid (3,834) (2,106) (3,834) (2,106)
Interest received 5,263 4,527 5,263 4,527
Tax paid (2,027) (4,079) (2,027) (4,286)
Net cash generated from operating activities 97,866 291,395 97,377 291,875

Statements of cash flows
For the financial year ended 31 December 2018 (CONT’D.)
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Cash flows from investing activities

Additions of property, plant and equipment (9,165) (26,629) (9,165) (26,629)
Proceeds from disposal of property, plant and
equipment – 4,635 – 4,635
Net cash used in investing activities (9,165) (21,994) (9,165) (21,994)
Cash flows from financing activities

Proceeds from borrowings 25 – 62 – 62
Repayment of borrowings 25 (187,339) (199,876) (187,339) (199,876)
Interest paid 25 (28,291) (36,476) (28,291) (36,476)
Deposits pledged as securities (3,777) (1,613) (3,777) (1,613)
Net cash used in financing activities (219,407) (237,903) (219,407) (237,903)
Net (decrease)/increase in cash and cash

equivalents (130,706) 31,498 (131,195) 31,978
Currency translation differences (8,137) (22,457) (7,988) (22,440)
Cash and cash equivalents at beginning of the
financial year 391,447 382,406 390,328 380,790
Cash and cash equivalents at end of the

financial year 22 252,604 391,447 251,145 390,328

The Digital Airline
Notes to the financial statements

– 31 DECEMBER 2018
1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main
Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The registered office of the Company is located at
Unit 30-01, Level 30, Tower A, Vertical Business Suite Avenue 3, Bangsar South No. 8, Jalan Kerinchi 59200 Kuala
Lumpur, Wilayah Persekutuan Malaysia. The principal place of business of the Company is located at RedQ, Jalan
Pekeliling 5, Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA2), 64000 KLIA, Selangor Darul Ehsan.
The principal activity of the Company is that of providing long haul air transportation services. The principal activities
of the subsidiary companies are disclosed in Note 14.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
Directors on 28 March 2019.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that
are considered material in relation to the financial statements:
2.1 Basis of preparation

The financial statements of the Group and of the Company have been prepared in accordance with the Malaysian
Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements
of the Companies Act 2016 in Malaysia.
The financial statements of the Group and of the Company have been prepared under the historical cost basis
except as disclosed in this summary of significant accounting policies below.
The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand
(RM’000) except when otherwise indicated.
As of 1 January 2018, the Group and the Company adopted new MFRS and amendments to MFRS (collectively
referred to as “pronouncements”) that have been issued by the Malaysian Accounting Standards Board (“MASB”)
as described fully in Note 2.27.
The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses
during the reported financial year. It also requires Directors to exercise their judgment in the process of applying
the Group’s and the Company’s accounting policies. Although these estimates and judgment are based on the
Directors’ best knowledge of current events and actions, actual results may differ. The areas involving a higher
degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 3.
As at 31 December 2018, the Group’s and the Company’s current liabilities exceeded their current assets by
RM623,678,000 (2017: RM1,113,867,000) and RM625,683,000 (2017: RM1,114,875,000) respectively.
The Directors are of the view that the Group and the Company will have sufficient cash flows for the next twelve
months from the reporting date to meet their cash flow requirements. The Directors believe that the Group and
the Company are able to realise their assets and discharge their liabilities in the normal course of business and
that the financial position will be improved through operating profits and cash flows from disposal of certain assets.
Thus, the Directors believe that it is appropriate to prepare the financial statements of the Group and the Company
on a going concern basis.

For the financial year ended 31 December 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Basis of consolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that control
ceases.
The Group applies the acquisition method to account for business combinations. The consideration transferred
for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the
former owners of the acquiree and the equity interests issued by the Group. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially
at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree
on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate
share of the recognised amounts of acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred.
When a business combination is achieved in stages, the Group remeasures its previously held non-controlling
equity interest in the acquiree at fair value at the acquisition date, with any resulting gain or loss recognised
in the profit or loss. Increase in the Group’s ownership interest in an existing subsidiary is accounted for as
equity transactions, with differences between the fair value of consideration paid and the Group’s proportionate
share of net assets acquired, recognised directly in equity.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or
liability is recognised in accordance with MFRS 9 either in profit or loss or as a change to other comprehensive
income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement
is accounted for within equity.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
identifiable net assets acquired is recognised as goodwill. If the total of consideration transferred, non-controlling
interest recognised and previously held interest measured is less than the fair value of the net assets of the
subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the profit or
loss.
Inter-company transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated. Where necessary, amounts reported by subsidiaries have
been adjusted to conform with the Group’s accounting policies.
(ii) Associates
Associates are all entities over which the Group has significant influence but not control, generally accompanying
a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for
using the equity method of accounting. Under the equity method, the investment is initially recognised at
cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss
of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified
on acquisition.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss
where appropriate.

The Digital Airline


2.2 Basis of consolidation (cont’d.)
(ii) Associates (cont’d.)
The Group’s share of post-acquisition profit or loss is recognised in the profit or loss, and its share of post-
acquisition movements in other comprehensive income is recognised in other comprehensive income with a
corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an
associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group
does not recognise further losses, unless it has incurred legal or constructive obligations or made payments
on behalf of the associate. If the associate subsequently reports profits, the Group resumes recognising its
share of those profits only after its share of profits equals the share of losses not recognised.
The Group determines at each reporting date whether there is any objective evidence that the investment in
the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognises the amount adjacent
to ‘share of results of associates’ in the profit or loss.
Profits and losses resulting from upstream and downstream transactions between the Group and its associates
are recognised in the Group’s financial statements only to the extent of unrelated investor’s interests in the
associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the
asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency
with the policies adopted by the Group.
Dilution gains and losses arising from investments in associates are recognised in profit or loss.
(iii) Joint arrangements

A joint arrangement is an arrangement of which there is contractually agreed sharing of control by the Group
with one or more parties, where decisions about the relevant activities relating to the joint arrangement require
unanimous consent of the parties sharing control. The classification of a joint arrangement as a joint operation
or a joint venture depends upon the rights and obligations of the parties to the arrangement. A joint venture
is a joint arrangement whereby the joint venturers have rights to the net assets of the arrangement. A joint
operation is a joint arrangement whereby the joint operators have rights to the assets and obligations for the
liabilities, relating to the arrangement.
The Group’s interest in a joint venture is accounted for in the financial statements using the equity method
of accounting. Under the equity method of accounting, interests in joint ventures are initially recognised at
cost and adjusted thereafter to recognise the group’s share of the post-acquisition profits or losses and
movements in other comprehensive income. When the Group’s share of losses in a joint venture equals or
exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part
of the Group’s net investment in the joint ventures), the Group does not recognise further losses, unless it
has incurred obligations or made payments on behalf of the joint ventures. If the joint venture subsequently
reports profits, the Group resumes recognising its share of those profits only after its share of profits equals
the share of losses not recognised. Where an entity loses joint control over a joint venture but retains significant
influence, the Group does not re-measure its continued ownership interest at fair value.
Where an indication of impairment exists, the carrying value of the investment is assessed and written down
immediately to its recoverable amount. Refer to accounting policy Note 2.5 on impairment of non-financial
assets.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the
Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been
changed where necessary to ensure consistency with the policies adopted by the Group.


2.3 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses. The cost of an item of property, plant and equipment initially recognised includes its purchase price and
any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management. Costs also include borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying asset (refer to accounting policy Note
2.14 on borrowing costs).
Where significant parts of an item of property, plant and equipment are required to be replaced at intervals, the
Group and the Company recognises such parts in the carrying amount of the property, plant and equipment as
a replacement when it is probable that future economic benefits associated with the parts will flow to the Group
and the Company and the cost of the parts can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are recognised as expenses in profit or loss during the period
in which they are incurred.
Significant parts of an item of property, plant and property are depreciated separately over their estimated useful
lives in accordance with the principle in MFRS 116 “Property, Plant and Equipment”. Depreciation is calculated using
the straight-line method to write-off the cost of the assets to their residual values over their estimated useful lives.
The useful lives for this purpose are as follows:

Aircraft
– engines and airframe excluding service potential 25 years
– service potential of engines and airframe 6 or 12 years
Aircraft spares 10 years
Aircraft fixtures and fittings Useful life of aircraft or remaining lease
term of aircraft, whichever is shorter
Motor vehicles 5 years
Office equipment, furniture and fittings 5 years
Service potential of 6 years represents the period over which the expected cost of the first major aircraft engine
overhaul is depreciated. Subsequent to the engine overhaul, the actual cost incurred is capitalised and depreciated
over the subsequent 6 years.
Certain elements of the cost of an airframe are attributed on acquisition to 6 years interval check or 12 years
interval check, reflecting its maintenance conditions. This cost is amortised over the shorter of the period to the
next scheduled heavy maintenance or the remaining life of the aircraft.
Assets not yet in operation are stated at cost and are not depreciated until the assets are ready for their intended
use. Useful lives of assets are reviewed and adjusted if appropriate, at the financial position date.
Residual values, where applicable, are reviewed annually against prevailing market values at the financial position
date for equivalent aged assets, and depreciation rates are adjusted accordingly on a prospective basis. For the
current financial year ended 31 December 2018, the estimated residual value for aircraft airframes and engines is
10% of their cost (2017: 10% of their cost).
An element of the cost of an acquired aircraft is attributed on acquisition to its service potential, reflecting the
maintenance condition of its engines and airframe. This cost, which can equate to a substantial element of the
total aircraft cost, is amortised over the shorter of the period to the next checks or the remaining life of the
aircraft.

The Digital Airline


2.3 Property, plant and equipment (cont’d.)
The costs of upgrades to leased assets are capitalised and amortised over the shorter of the expected useful life
of the upgrades or the remaining life of the aircraft.
Pre-delivery payments on aircraft purchase are included as part of the cost of the aircraft and are depreciated
from the date that the aircraft is ready for its intended use.
At each financial year, the Group and the Company assess whether there is any indication of impairment. If such
an indication exists, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable.
A write down is made if the carrying amount exceeds the recoverable amount. Refer to accounting policy Note
2.5 on impairment of non-financial assets.
Gains and losses on disposals are determined by comparing net proceeds with carrying amounts and are included
in the profit or loss.
Non-current assets are classified as assets held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are
stated at the lower of carrying amount and fair value less costs to sell, except for assets such as deferred tax
assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value
and contractual rights under insurance contracts, which are specifically exempt from this requirement. Costs to
sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income
tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset
or disposal group is available for immediate sale in its present condition. Actions required to complete the sale
should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will
be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed
within one year from the date of the classification.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to
sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess
of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of
the sale of the non-current asset is recognised at the date of derecognition.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other
expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the statement of financial position. The liabilities of a disposal group
classified as held for sale are presented separately from other liabilities in the statement of financial position.
2.4 Investments in subsidiaries, associates and joint ventures

In the Group’s and the Company’s separate financial statements, investments in subsidiaries, associates and joint
ventures are stated at cost less accumulated impairment losses. Where an indication of impairment exists, the
carrying amount of the investment is assessed and written down immediately to its recoverable amount. Refer to
Note 2.5 on impairment of non-financial assets.
On disposal of investments in subsidiaries, associates and joint ventures, the difference between disposal proceeds
and the carrying amounts of the investments are recognised in profit or loss.


2.5 Impairment of non-financial assets
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of
an asset’s fair value less cost to sell and value-in-use. For the purpose of assessing impairment, assets are grouped
at the lowest level for which there are separately identifiable cash flows or cash generating units (CGUs). Non-
financial assets other than goodwill that suffered an impairment are reviewed for possible reversal at each reporting
date.
Any impairment loss is charged to profit or loss unless it reverses a previous revaluation in which case it is charged
to the revaluation surplus. Impairment losses on goodwill are not reversed. In respect of other assets, any subsequent
increase in recoverable amount is recognised in profit or loss unless it reverses an impairment loss on a revalued
asset in which case it is taken to revaluation surplus.
2.6 Maintenance and overhaul

(i) Owned aircraft
The accounting for the cost of major airframe and certain engine maintenance checks for own aircraft is
described in the accounting policy in Note 2.3 for property, plant and equipment.
(ii) Leased aircraft

Where the Group and the Company have a commitment to maintain aircraft held under operating leases, a
provision is made during the lease term for the rectification obligations contained within the lease agreements.
The provisions are based on estimated future costs of major airframe, certain engine maintenance checks and
one-off costs incurred at the end of the lease by making appropriate charges to the profit or loss calculated
by reference to the number of flying hours, flying cycles operated during the financial year and calendar
months of the components used.
2.7 Leases
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment, or series of payments,
the right to use an asset for an agreed period of time.
(i) Finance leases

Leases of property, plant and equipment where the Group and the Company assume substantially all the
benefits and risks of ownership are classified as finance leases.
Finance leases are capitalised at the commencement dates of the respective leases at the lower of the fair
value of the leased property and the present value of the minimum lease payments at the date of inception.
Each lease payment is allocated between the liability and finance charges so as to achieve a periodic constant
rate of interest on the balance outstanding. The corresponding rental obligations, net of finance charges, are
included in payables. The interest element of the finance charge is charged to the profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
Initial direct costs incurred by the Group and the Company in negotiating and arranging finance leases are
added to the carrying amount of the leased assets and recognised as an expense in profit or loss over the
lease term on the same basis as the lease expense.
Property, plant and equipment acquired under finance lease contracts are depreciated over the estimated
useful life of the asset, in accordance with the annual rates stated in Note 2.3 above. Where there is no
reasonable certainty that the ownership will be transferred to the Group and the Company, the asset is
depreciated over the shorter of the lease term and its useful life.

The Digital Airline


2.7 Leases (cont’d.)
(ii) Operating leases
Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases (net of incentives received from the
lessor) are charged to the profit or loss on a straight-line basis over the lease period.
Assets leased out by the Group and the Company under operating leases are included in property, plant and
equipment in the financial positions. They are depreciated over their expected useful lives on a basis consistent
with similar owned property, plant and equipment. Rental income (net of any incentives given to lessees) is
recognised on a straight line basis over the lease term.
(iii) Sale and leaseback transactions

When a sale and leaseback results in a finance lease, any gain on the sale is deferred and recognised as
income over the lease term. Any loss on the sale is immediately recognised as an impairment loss when the
sale occurs.
If the leaseback is classified as an operating lease, then any gain is recognised immediately if the sale and
leaseback terms are demonstrably at fair value. Otherwise, the sale and leaseback are accounted for as follows:
– If the sale price is below fair value then the gain or loss is recognised immediately other than to the extent
that a loss is compensated for by future rentals at below-market price, then the loss is deferred and
amortised over the period that the asset is expected to be used.
– If the sale price is above fair value, then any gain is deferred and amortised over the useful life of the
asset.
– If the fair value of the asset is less than the carrying amount of the asset at the date of the transaction,
then that difference is recognised immediately as a loss on the sale.
2.8 Inventories
Inventories comprising consumables used internally for repairs and maintenance and in-flight merchandise, are
stated at the lower of cost and net realisable value.
Cost is determined on the weighted average basis, and comprises the purchase price and incidentals incurred in
bringing the inventories to their present location and condition.
Net realisable value represents the estimated selling price in the ordinary course of business, less all estimated
costs to completion and applicable variable selling expenses. In arriving at net realisable value, due allowance is
made for all damaged, obsolete and slow-moving items.
2.9 Derivative financial instruments and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
re-measured at their fair value.
The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging
instrument, and the nature of the item being hedged. Derivatives that do not qualify for hedge accounting are
classified as held for trading and accounted for as financial liabilities in accordance with the accounting policy set
out in Note 2.24. The Group and the Company designate certain derivatives as hedges of a particular risk associated
with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge).
The Group and the Company document at the inception of the transaction the relationship between hedging
instruments and hedged items, as well as its risk management objectives and strategy for undertaking various
hedging transactions. The Group and the Company also document their assessment, both at hedge inception and
on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in
offsetting changes in cash flows of hedged items.


2.9 Derivative financial instruments and hedging activities (cont’d.)
The fair values of various derivative instruments used for hedging purposes are disclosed in Note 18. The full fair
value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is
more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less
than 12 months.
Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised
immediately in the profit or loss.
Amounts accumulated in equity are reclassified to the profit or loss in the periods when the hedged item affects
profit or loss (for example, when the forecast sale that is hedged takes place).
When the forecast transaction that is hedged results in the recognition of a non-financial asset (for example,
inventory or property, plant and equipment), the gains and losses previously deferred in equity are transferred
from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately
recognised in the cost of goods sold in the case of inventory or in depreciation in the case of property, plant and
equipment.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast
transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in equity is immediately transferred to the profit or loss.
2.10 Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary
course of business. If collection is expected in one year or less (or in the normal operating cycle of the business
if longer), they are classified as current assets. Otherwise, they are presented as non-current assets.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less allowance for impairment.
2.11 Cash and cash equivalents

For the purpose of the statements of cash flows, cash and cash equivalents comprise cash on hand, bank balances,
demand deposits, bank overdrafts and other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
Bank overdrafts which are repayable on demand and form an integral part of the Group’s and the Company’s cash
management are included as a component of cash and cash equivalents in the statement of cash flows. In the
financial positions, banks overdrafts are shown within borrowings in current liabilities.
Deposits held as pledged securities for term loans granted are not included as cash and cash equivalents.

The Digital Airline


2.12 Provision
Provisions are recognised when the Group and the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable (i.e., more likely than not) that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Where
the Group and the Company expects a provision to be reimbursed, the reimbursement is recognised as a separate
asset, but only when the reimbursement is virtually certain. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense
in profit or loss.
Contingent liabilities are not recognised in the consolidated statement of financial position but are disclosed in
the notes to consolidated financial statements, unless the possibility of an outflow of resources embodying economic
benefits is remote. Contingent assets are not recognised but disclosed in the notes to consolidated financial
statements when an inflow of economic benefits is probable. If it is virtually certain that an inflow of economic
benefits will arise, the asset and the related income are recognised in the consolidated financial statements.
2.13 Share capital

(i) Classification
Ordinary shares with discretionary dividends are classified as equity. Other shares are classified as equity and/
or liability according to the economic substance of the particular instrument.
(ii) Share issue costs

Incremental external costs directly attributable to the issuance of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
(iii) Dividends to shareholders of the Company

Dividends are recognised as a liability in the period in which they are declared. A dividend declared after the
end of the reporting period, but before the financial statements are authorised for issue, is not recognised as
a liability at the end of the reporting period.
2.14 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between initial recognised amount and the redemption value is recognised
in profit or loss over the period of the borrowings using the effective interest method.
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or
sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down,
the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which
it relates.


2.14 Borrowings (cont’d.)
Interest, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liability
is reported within finance cost in the profit or loss.
Borrowings are classified as current liabilities unless the Group and the Company have an unconditional right to
defer settlement of the liability for at least twelve months after the financial year.
2.15 Income taxes

(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised
outside profit or loss, either in other comprehensive income or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.
(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
– where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
– in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax
assets are recognised only to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be
utilised.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be
utilised except:
– where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
– in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax
assets are recognised only to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be
utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax assets to be utilised.

The Digital Airline


2.15 Income taxes (cont’d.)
(ii) Deferred tax (cont’d.)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred
tax items are recognised in correlation to the underlying transaction either in other comprehensive income or
directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
2.16 Employee benefits

(i) Short term employee benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the
financial year in which the associated services are rendered by the employees of the Group and of the
Company.
(ii) Defined contribution plan

The Group’s and the Company’s contributions to the Employees’ Provident Fund are charged to the profit or
loss in the period to which they relate. Once the contributions have been paid, the Group and the Company
have no further payment obligations. Prepaid contributions are recognised as an asset to the extent that a
cash refund or a reduction in the future payments is available.
2.17 Revenue recognition

(a) Revenue from contracts with customers
The Group and the Company recognise revenue from contracts with customers for the provision of services
and sale of goods based on the five-step model as set out below:
(i) Identify contract(s) with a customer. A contract is defined as an agreement between two or more parties
that creates enforceable rights and obligations and sets out the criteria that must be met.
(ii) Identify performance obligations in the contract. A performance obligation is a promise in a contract with
a customer to transfer a good or service to the customer.
(iii) Determine the transaction price. The transaction price is the amount of consideration to which the Group
and the Company expect to be entitled in exchange for transferring promised goods or services to a
customer, excluding amounts collected on behalf of third parties.
(iv) Allocate the transaction price to the performance obligations in the contract. For a contract that has
more than one performance obligation, the Group and the Company allocate the transaction price to
each performance obligation in an amount that depicts the amount of consideration to which the Group
and the Company expect to be entitled in exchange for satisfying each performance obligation.
(v) Recognise revenue when (or as) the Group and the Company satisfy a performance obligation.
The Group and the Company satisfy a performance obligation and recognise revenue over time if the Group’s
and the Company’s performance:
(i) Do not create an asset with an alternative use to the Group and the Company and have an enforceable
right to payment for performance completed to-date;
(ii) Create or enhance an asset that the customer controls as the asset is created or enhanced; or
(iii) Provide benefits that the customer simultaneously receives and consumes as the Group and the Company
perform.


2.17 Revenue recognition (cont’d.)
(a) Revenue from contracts with customers (cont’d.)
Revenue from scheduled passenger flights is recognised upon the rendering of transportation services net of
discounts. The revenue of seats sold for which services have not been rendered is included in current liabilities
as sales in advance.
Revenue from charter flights is recognised upon the rendering of transportation services.
Fuel surcharge, insurance surcharge, administrative fees, seat fees, change fees, convenience fees, excess
baggage and baggage handling fees are recognised upon the completion of services rendered net of discounts.
Freight and other related revenue are recognised upon the completion of services rendered net of discounts.
Management fees, incentives and commission income are recognised on an accrual basis.
Interest income is recognised using the effective interest method.
(b) Other revenue

Revenue from aircraft operating lease is recorded on a straight line basis over the term of the lease.
2.18 Foreign currencies

(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (“the functional currency”). The financial
statements are presented in Ringgit Malaysia, which is the Company’s functional and presentation currency.
(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss, except when
deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Foreign exchange gains and losses arising from operations are included in arriving at the operating profit.
Foreign exchange gains and losses arising from borrowings (after effects of effective hedges) are separately
disclosed after net operating profit.
(iii) Group companies

The results and financial position of all entities within the Group (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are translated
into the presentation currency as follows:
– assets and liabilities for each financial position presented are translated at the closing rate at the date of
that financial position;
– income and expenses for each profit or loss are translated at average exchange rates (unless this average
is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated at the dates of the transactions); and
– all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations
are taken to shareholders’ equity. When a foreign operation is disposed of or sold, such exchange differences
that were recorded in equity are recognised in the profit or loss as part of the gain or loss on disposal.

The Digital Airline


2.19 Contingent liabilities
The Group and the Company do not recognise a contingent liability but discloses its existence in the financial
statements. A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by uncertain future events beyond the control of the Group and of the Company, or a present obligation
that is not recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in the extremely rare circumstance where there is a liability that cannot
be recognised because it cannot be measured reliably. However contingent liabilities do not include financial
guarantee contracts.
The Group and the Company recognise separately the contingent liabilities of the acquirees as part of allocating
the cost of a business combination where their fair values can be measured reliably. Where the fair values cannot
be measured reliably, the resulting effect will be reflected in the goodwill arising from the acquisitions.
Subsequent to the initial recognition, the Group and the Company measure the contingent liabilities that are
recognised separately at the date of acquisition at the higher of the amount that would be recognised in accordance
with the provisions of MFRS 137 “Provisions, Contingent Liabilities and Contingent Assets” and the amount initially
recognised.
2.20 Financial assets

(i) Recognition and initial measurement
Financial assets are classified, at initial recognition, as well as subsequent measurement at amortised cost, fair
value through other comprehensive income (“OCI”), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s and the Company’s business model for managing them.
With the exception of trade receivables that do not contain a significant financing component or for which
the Group and the Company have applied the practical expedient, the Group and the Company initially measure
a financial asset at its fair value plus, transaction costs, in the case of a financial asset not at fair value through
profit or loss.
Prior to 1 January 2018, trade receivables are carried at amortised cost.
Trade receivables that do not contain a significant financing component or if the period between performance
and payment is 1 year or less under practical expedient of MFRS 15, are measured at the transaction price
determined under MFRS 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are solely payments of principal and interest (“SPPI”) on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s and the Company’s business model for managing financial assets refers to how it manages its
financial assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place (“regular way trades”) are recognised on the trade date, that is the date
that the Group or the Company commits to purchase or sell the asset.
(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:
(a) Financial assets at amortised cost (debt instruments)
(b) Financial assets at fair value through OCI (debt instruments)
(c) Financial assets at fair value through profit or loss


2.20 Financial assets (cont’d.)
(ii) Subsequent measurement (cont’d.)
Financial assets at amortised cost
This category is the most relevant to the Group and the Company. The Group and the Company measure
financial assets at amortised cost if both of the following conditions are met:
i. The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows, and
ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest rate (“EIR”) method
and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised,
modified or impaired.
(iii) Derecognition
A financial asset is derecognised when:
(a) The rights to receive cash flows from the asset have expired, or
(b) The Group and the Company have transferred their rights to receive cash flows from the asset or have
assumed an obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through’ arrangement; and either:
i. The Group and the Company have transferred substantially all the risks and rewards of the asset, or
ii. The Group and the Company have neither transferred nor retained substantially all the risks and
rewards of the asset, but have transferred control of the asset.
When the Group and the Company have transferred their rights to receive cash flows from an asset or have
entered into a pass-through arrangement, they evaluate if, and to what extent, they have retained the risks
and rewards of ownership. When they have neither transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the Group and the Company continue to recognise
the transferred asset to the extent of its continuing involvement. In that case, the Group and the Company
also recognise an associated liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Group and the Company have retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Group and
the Company would required to repay.
2.21 Impairment of financial assets

The Group and the Company recognise an allowance for expected credit losses (“ECLs”) for all debt instruments
carried at amortised cost and fair value through OCI. ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Group and the Company expect
to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows
from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a
significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

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2.21 Impairment of financial assets (cont’d.)
For trade receivables, the Group and the Company apply a simplified approach in calculating ECLs. Therefore, the
Group and the Company do not track changes in credit risk, but instead recognise a loss allowance based on
lifetime ECLs at each reporting date. The Group and the Company have established a provision matrix that is
based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
The Group and the Company consider a financial asset in default when contractual payments are 90 days past
due. However, in certain cases, the Group and the Company may also consider a financial asset to be in default
when internal or external information indicates that the Group and the Company are unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements held by the Group
and the Company. A financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.
2.22 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is presented in the financial position when there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or
realise the asset and settle the liability simultaneously.
2.23 Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or
less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
2.24 Financial liabilities

(i) Recognition and initial measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings and payables.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
The Group’s and the Company’s financial liabilities include trade and other payables and loans and borrowings.
(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group and the
Company that are not designated as hedging instruments in hedge relationships as defined by MFRS 9.
Separated embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments.
Gain or losses on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria in MFRS 9 are satisfied. The Group and the Company
have not designated any financial liability as at fair value through profit or loss.


2.24 Financial liabilities (cont’d.)
(ii) Subsequent measurement (cont’d.)
Loans and borrowings
This is the category most relevant to the Group and the Company. After initial recognition, interest-bearing
loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses
are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of
profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Subsequent to initial recognition, other financial liabilities are subsequently measured at amortised cost using
the effective interest method.
Gains and losses are recognised in the profit or loss when the liabilities are derecognised as well as through
the amortisation process.
(iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in the profit or loss.
2.25 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Group Chief Executive Officer that makes
strategic decisions.
2.26 Warrant reserve

Warrant reserve arising from the issuance of free warrants together with the rights issue, is determined based on
the allocation of the proceeds from the rights issue using the fair value of the warrants and the ordinary shares
on a pro-rate basis. Proceeds from warrants which are issued at a value, are credited to a warrant reserve. Warrant
reserve is non-distributable, and is transferred to the share capital account upon the exercise of warrants. Warrant
reserve in relation to unexercised warrants at the expiry of the warrants period is transferred to accumulated
losses.
2.27 Adoption of new and revised pronouncements

As at 1 January 2018, the Group and the Company have adopted the following pronouncements that are applicable
and have been issued by the MASB as listed below:
Effective for annual periods beginning on or after 1 January 2018
MFRS 9 Financial Instruments

MFRS 15 Revenue from Contracts with Customers
Amendments to MFRS 15 Revenue from Contracts with Customers: Clarifications
Amendments to MFRS 128 Investments in Associates and Joint Ventures (Annual Improvements to
MFRSs 2014-2016 Cycle)
Amendments to MFRS 140 Investment Property: Transfers to Investment Property
IC Interpretation 22 Foreign Currency Transactions and Advance Consideration

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2.27 Adoption of new and revised pronouncements (cont’d.)
The principal changes in accounting policies and their effects are set out below:
(i) MFRS 9 Financial Instruments

MFRS 9 replaces the guidance in MFRS 139 Financial Instruments: Recognition and Measurement for annual
periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial
instruments: classification and measurement, impairment and hedge accounting.
The Group and the Company applied MFRS 9 retrospectively, with an initial application date of 1 January
2018. Under the transitional provisions of MFRS 9, the Group and the Company have elected not to restate
the comparative information, which continues to be reported under MFRS 139. Differences arising from the
adoption of MFRS 9 have been recognised in opening accumulated losses.
(a) Classification and measurement

Under MFRS 9, debt instruments are subsequently measured at fair value through profit or loss, amortised
cost, or fair value through OCI. The classification is based on two criteria: the Group’s and the Company’s
business model for managing the assets; and whether the instruments’ contractual cash flows represent
‘solely payments of principal and interest’ on the principal amount outstanding.
The assessment of the Group’s and the Company’s business model was made as of the date of initial
application, 1 January 2018. The assessment of whether contractual cash flows on debt instruments are
solely consist of principal and interest was made based on the facts and circumstances as at the initial
recognition of the assets.
The classification and measurement requirements of MFRS 9 did not have a significant impact to the
Group and the Company. The following are the changes in the classification of the Group’s and the
Company’s financial assets:
Trade receivables and other financial assets

Trade receivables and other financial assets previously classified as loans and receivables are held to
collect contractual cash flows and give rise to cash flows representing solely payments of principal and
interest. These are now classified and measured as debt instruments at amortised cost.
(b) Impairment
MFRS 9 also replaces the incurred loss model in MFRS 139 with a forward-looking ECL model. Under
MFRS 9, loss allowances will be measured on either 12-month ECLs or lifetime ECLs.
Upon adoption of MFRS 9, the Group and the Company had recognised additional impairment on the
Group’s and the Company’s trade receivables which resulted in an increase in accumulated losses of
RM1,072,000 as at 1 January 2018. The impact to the Group’s and the Company’s impairment allowances
is as below:
Under Under
MFRS 139 MFRS 9
balances as balances as
at 31.12.2017 Adjustments at 1.1.2018
RM’000 RM’000 RM’000
Trade and other receivables 2,050,737 (1,410) 2,049,327

Deferred tax assets 423,664 338 424,002
Accumulated losses (607,042) (1,072) (608,114)


(ii) MFRS 15 Revenue from Contracts with Customers
MFRS 15 replaces the guidance in MFRS 111 Construction Contracts, MFRS 118 Revenue, IC Interpretation 13
Customer Loyalty Programmes, IC Interpretation 15 Agreements for Construction of Real Estate, IC Interpretation
18 Transfers of Assets from Customers and IC Interpretation 131 Revenue – Barter Transactions Involving
Advertising Services. MFRS 15 provides a single model of accounting for revenue arising from contracts with
customers, focusing on the identification and satisfaction of performance obligations.
The Group and the Company adopted MFRS 15 using the modified retrospective method of adoption with the
date of initial application of 1 January 2018. Under this method, the standard can be applied either to all
contracts at the date of initial application or only to contracts that are not completed at this date.
Upon adoption of MFRS 15, the Group and the Company had deferred revenue from processing fees and
change fees upon flown dates which were previously accounted for at transaction dates.
Effects arising from the initial application of MFRS 15 are as follows:
Under Under
MFRS 118 MFRS 15
balances as balances as
at 31.12.2017 Adjustments at 1.1.2018
RM’000 RM’000 RM’000
Sales in advance 714,586 18,246 732,832

Deferred tax assets (after MFRS 9 impact) 424,002 4,379 428,381
Accumulated losses (after MFRS 9 impact) (608,114) (13,867) (621,981)
The summary of effects of above adoption of MFRS 15 and 9 in increasing the opening accumulated losses
is as follows:
RM’000
MFRS 15 (13,867)
MFRS 9 (1,072)
Total (14,939)
(iii) Amendments to MFRS 128 Investments in Associates and Joint Ventures (Annual Improvements to MFRSs
2014-2016 Cycle)
The amendments clarify that an entity that is a venture capital organisation, or other qualifying entity, may
elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and
joint ventures at fair value through profit or loss. If an entity that is not itself an investment entity, has an
interest in an associate or joint venture that is an investment entity, then it may, when applying the equity
method, elect to retain the fair value measurement applied by that investment entity associate or joint venture
to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately
for each investment entity associate or joint venture, at the later of the date on which: (a) the investment
entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment
entity; and (c) the investment entity associate or joint venture first becomes a parent.

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(iii) Amendments to MFRS 128 Investments in Associates and Joint Ventures (Annual Improvements to MFRSs
2014-2016 Cycle) (cont’d.)
These amendments do not have any impact on the Group’s consolidated financial statements.
(iv) IFRIC Interpretation 22 Foreign Currency Transactions and Advance Considerations

The Interpretation clarifies that, in determining the spot exchange rate to use on initial recognition of the
related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary
liability relating to advance consideration, the date of the transaction is the date on which an entity initially
recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there
are multiple payments or receipts in advance, then the entity must determine the date of the transactions for
each payment or receipt of advance consideration. This Interpretation does not have any impact on the Group’s
consolidated financial statements.
2.28 Pronouncements yet in effect

The following pronouncements that have been issued by the MASB will become effective in future financial reporting
periods and have not been adopted by the Group and/or the Company in these financial statements:

MFRS 16 Leases
Amendments to MFRS 3 Business Combinations

(Annual Improvements 2015-2017 Cycle)
Amendments to MFRS 112 Income taxes

Amendments to MFRS 123 Borrowing costs

Amendments to MFRS 128 Investments in Associates and Joint

Ventures: Long-term Interests in Associates and Joint Ventures
Amendments to MFRS 119 Employee Benefits: Plan Amendment, Curtailment or Settlement
IC Interpretation 23 Uncertainty Over Income Tax Treatment

Amendment to MFRS 3 Business Combinations (Definition of Business)
Amendments to MFRS 101 Presentation of Financial Statements (Definition of Material)
Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors
(Definition of Material)
Effective for a date yet to be confirmed

Amendments to MFRS 10 Consolidated Financial Statements: Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture
Amendments to MFRS 128 Investments in Associates and Joint Ventures: Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
The Group and the Company are expected to apply the abovementioned pronouncements beginning from the
respective dates the pronouncements become effective. The initial application of the abovementioned pronouncements
are not expected to have any material impacts to the financial statements of the Group and the Company except
as mentioned below:


2.28 Pronouncements yet in effect (cont’d.)
MFRS 16 Leases
MFRS 16 replaces existing leases guidance in MFRS 117 Leases, IC Interpretation 4 Determining whether an Arrangement
contains a Lease, IC Interpretation 115 Operating Leases – Incentives and IC Interpretation 127 Evaluating the
Substance of Transactions Involving the Legal Form of a Lease.
MFRS 16 introduces a single, on financial position lease accounting for lessees. A lessee recognise a right of use
asset representing its right to use the underlying asset and a lease liability representing its obligation to make
lease payments. There are recognition exemptions for short-term leases, leases of low-value items and variable
lease payments. Lessor accounting remains similar to the current standard which continues to be classified as
finance lease or operating lease.
MFRS 16 will affect primarily the accounting by lessees and will result in the recognition of almost all leases on
the statement of financial position. The standard removes the current distinction between operating and financing
leases and requires recognition of an asset (the right to use the leased item) and a financial liability to pay rentals
for virtually all lease contracts. An optional exemption exists for short-term and low-value leases.
The statement of profit or loss will also be affected because the total expense is typically higher in the earlier
years of a lease and lower in later years. Additionally, operating expense will be replaced with interest and
depreciation, so key metrics like earning before interest, tax, depreciation and amortization (“EBITDA”) will change.
Operating cash flows will be higher as cash payments for the principal portion of the lease liability are classified
within financing activities. Only the part of the payments that reflects interest can continue to be presented as
operating cash flows.
The accounting by lessors will not significantly change. Some differences may arise as a result of the new guidance
on the definition of a lease. Under MFRS 16, a contract is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration.
During the financial year ended 31 December 2018, the Group and the Company performed a detailed impact
assessment of the aspects of MFRS 16. The assessment is based on present day available information and may
subject to changes arising from further reasonable and supportable information being made available to the
Group and the Company in the financial year ending 31 December 2019 when the Group and the Company adopt
MFRS 16.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgments are continually evaluated by the Directors and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group and the Company make estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, rarely equal the related actual results. To enhance the information content of the estimates, certain
key variables that are anticipated to have a material impact to the Group’s and the Company’s results and financial
position are tested for sensitivity to changes in the underlying parameters.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are outlined below:
(i) Estimated useful lives and residual values of aircraft frames and engines
The Group and the Company reviews annually the estimated useful lives and residual values of aircraft frames and
engines based on factors such as business plan and strategies, expected level of usage, future technological
developments and market prices.
Future results of operations could be materially affected by changes in these estimates brought about by changes
in the factors mentioned above. A reduction of 5% in the residual values of aircraft airframes and engines as
disclosed in Note 2.3, would increase the recorded depreciation for the financial year ended 31 December 2018 by
RM3,626,000 (2017: RM3,346,000) and decrease the carrying amount of property, plant and equipment as at 31
December 2018 by RM26,916,000 (2017: RM23,174,000).

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3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D.)

(ii) Deferred tax assets
Deferred tax assets are mainly originating from unutilised tax incentives, unabsorbed capital allowances and tax
losses carry forward. The deferred tax assets are recognised to the extent that it is probable that future taxable
profits will be available against which temporary differences can be utilised. Estimating the future taxable profits
involves significant assumptions, especially in respect of regulatory approvals for prospective routes, aircraft delivery,
fares, load factors, fuel price, maintenance cost and currency movements. These assumptions have been built based
on past performance and adjusted for non-recurring circumstances and a reasonable growth rate. Based on these
projections, management believes that the temporary differences will be utilised and has recognised the deferred
tax assets as at reporting date.
(iii) Provision for aircraft maintenance

The Group and the Company operate aircraft under the operating leases. In respect of these operating lease
arrangements, the Group and the Company are contractually obligated to maintain the aircraft during the lease
period and to redeliver the aircraft to the lessors at the end of the lease term, in certain pre-agreed conditions.
The Group is obligated to carry out heavy duty maintenance check on the airframe, engines, life-limited parts,
landing gears and auxiliary power units, being part of the return conditions of its leased aircraft under contract.
Provision for heavy maintenance cost is made progressively in the financial statements based on number of flight
hours or cycles. In arriving at the cost to be incurred, and the timing of when the check is to be carried out.
These assumptions are formed based on past experience, and are regularly reviewed to ensure they approximate
to actual. Any revision in assumptions and estimations that causes a material effect to the provision would be
adjusted prospectively in the financial statements.
Management estimates the overhaul, restoration and redelivery costs and accrues such costs over the lease term.
The calculation of such costs includes management assumptions and estimates in respect of the anticipated rate
of aircraft utilisation which includes flying hours and flying cycles and calendar months of the asset as used. These
aircraft utilisation and calendar months affect the extent of the restoration work that will be required and the
expected costs of such overhaul, restoration and redelivery at the end of the lease term.
4. REVENUE
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Revenue from contracts with customers 4,118,460 4,125,947 4,115,361 4,123,831

Aircraft operating lease income 452,916 452,727 452,916 452,727
4,571,376 4,578,674 4,568,277 4,576,558
Revenue from contracts with customers

Type of goods or services
Scheduled flights 2,941,796 2,940,354 2,941,796 2,940,354
Charter flights 136,369 165,306 136,369 165,306
Freight services 182,997 171,008 182,997 171,008
Ancillary revenue 854,199 847,163 854,199 847,163
Management fees 3,099 2,116 – –
4,118,460 4,125,947 4,115,361 4,123,831
Timing of revenue recognition

At a point of time 4,118,460 4,125,947 4,115,361 4,123,831
Ancillary revenue includes assigned seat, cancellation, documentation and other fees, and on-board sale of meals and merchandise.

5. STAFF COSTS
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Wages, salaries, bonuses and allowances 388,684 382,623 378,955 371,106

Defined contribution retirement plan 34,161 38,395 33,428 37,635
Share option expense (Note 28) – 241 – 241
422,845 421,259 412,383 408,982
Included in staff costs of the Group and of the Company were Executive Directors’ remuneration amounting to RM2,763,000
(2017: RM2,688,000) as further disclosed in Note 6.
6. DIRECTORS’ REMUNERATION
The details of remuneration paid to Directors of the Group and Company during the financial years ended 31 December
2018 and 2017, respectively, are as follows:
Salary EPF and

and other Other
emoluments Fees allowances Total
RM’000 RM’000 RM’000 RM’000
2018
Executive Directors:
Datuk Kamarudin Bin Meranun 1,265 – 149 1,414
Tan Sri Anthony Francis Fernandes 1,200 – 149 1,349
2,465 – 298 2,763
Non-executive Directors:
Lim Kian Onn – 95 10 105
Dato’ Fam Lee Ee – 125 18 143
Tan Sri Rafidah Aziz – 255 18 273
Tan Sri Asmat Bin Kamaludin – 95 9 104
Dato’ Yusli Bin Mohamed Yusoff – 145 19 164
– 715 74 789
Total Executive and Non-executive Directors 2,465 715 372 3,552
2017
Executive Director:
Datuk Kamarudin Bin Meranun 2,400 – 288 2,688
2,400 – 288 2,688
Tan Sri Anthony Francis Fernandes – 65 3 68
Lim Kian Onn – 65 40 105
Dato’ Fam Lee Ee – 65 57 122
Tan Sri Rafidah Aziz – 165 82 247
Tan Sri Asmat Bin Kamaludin – 65 40 105
Dato’ Yusli Bin Mohamed Yusoff – 65 79 144
– 490 301 791
Total Executive and Non-executive Directors 2,400 490 589 3,479

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6. DIRECTORS’ REMUNERATION (CONT’D.)

The remuneration paid to the Directors of the Group and of the Company is analysed as follows:
Number of Directors
2018 2017
Executive Directors:
– Less than RM100,000 – –
– RM100,001 to RM150,000 – –
– RM150,001 to RM200,000 – –
– More than RM200,000 2 1
– Less than RM100,000 – 1
– RM100,001 to RM150,000 3 4
– RM150,001 to RM200,000 1 –
– More than RM200,000 1 1
7. OTHER OPERATING EXPENSES

The following items have been charged in arriving at other operating expenses:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Management fee – – 10,254 8,799

Rental of land and buildings 8,132 8,120 7,911 7,835
Auditors’ remuneration
– Statutory audit 551 452 398 341
– Non-audit fees 34 39 34 14
Rental of equipment 78 320 78 320
Advertising expenses 77,409 74,400 77,180 74,324
Credit card charges 42,556 44,465 42,556 44,465
In-flight meal expenses 24,362 23,631 24,362 23,631
Insurance expenses 15,464 28,988 15,462 28,986
Allowance for impairment of trade and other
receivables (Note 20) 149,897 60,049 149,897 60,049
Property, plant and equipment written off (Note 13) 7,844 431 7,844 431
Loss on disposal of property, plant and equipment – 93 – 93
Bad debts written off – 19 – 19

8. OTHER INCOME
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Commission income from insurance 2,856 3,801 2,856 3,801

Others 4,558 47,214 4,558 47,175
7,414 51,015 7,414 50,976
Other income include gain on disposal of assets previously held for sale of RMNil (2017: RM43.8 million).
9. FINANCE INCOME/(COSTS) AND NET FOREIGN EXCHANGE GAIN
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
(a) Finance income:

Interest income from deposits with licensed
bank 5,807 5,523 5,807 5,523
Other interest income 12,154 14,821 12,154 14,821
17,961 20,344 17,961 20,344

Discounting and accretion of interest
on deposits 37,812 12,860 37,812 12,860
55,773 33,204 55,773 33,204
Finance costs:
Interest expense on bank borrowings (28,291) (36,476) (28,291) (36,476)
Bank facilities and other charges (2,716) (2,105) (2,716) (2,105)
(31,007) (38,581) (31,007) (38,581)

Discounting and accretion of interest on
deposits (39,604) (22,643) (39,604) (22,643)
(70,611) (61,224) (70,611) (61,224)
(b) Net foreign exchange gain:

– Realised 13,911 33,512 13,911 33,512
– Unrealised 2,100 73,005 2,201 72,992
16,011 106,517 16,112 106,504
10. OTHER LOSSES
Group and Company
2018 2017
RM’000 RM’000
Other losses from fuel contracts held for trading (23,889) (4,265)

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11. TAXATION
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Current taxation:
Malaysian income tax 3,151 4,889 3,151 5,042
Foreign tax 1,090 280 – –
4,241 5,169 3,151 5,042

(Over)/under provision in respect of prior years (3,323) 1,236 (3,323) 1,083
918 6,405 (172) 6,125
Deferred taxation (Note 17):

Relating to origination and reversal of temporary
differences 85,575 48,246 86,095 48,413
(Over)/under provision in respect of previous year (11,672) 33,267 (11,672) 33,267
73,903 81,513 74,423 81,680
Total income tax expense 74,821 87,918 74,251 87,805
The Group is subject to income tax on an entity basis on the profit arising in or derived from the tax jurisdictions in
which members of the Group are domiciled and operate.
Domestic current income tax is calculated at the statutory tax rate of 24% (2017: 24%) of the estimated assessable
profit for the year.
A reconciliation of income tax expense applicable to (loss)/profit before taxation at the statutory income tax rate to
income tax expense at the effective income tax rate of the Group and of the Company is as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Tax at Malaysian statutory tax rate of 24%

(2017: 24%) (54,399) 44,833 (54,846) 45,133
Expenses not deductible for tax purposes 10,594 17,290 10,471 17,030
Income not subject to tax (5,327) (8,708) (5,327) (8,708)
Deferred tax assets not recognised 138,948 – 138,948 –
(Over)/underprovision of deferred tax
in respect of prior years (11,672) 33,267 (11,672) 33,267
(Over)/under provision of income tax
in respect of prior years (3,323) 1,236 (3,323) 1,083
Total income tax expenses 74,821 87,918 74,251 87,805

12. (LOSS)/EARNINGS PER SHARE (SEN)

(a) Basic (loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit for the financial year by the weighted
average number of ordinary shares in issue during the financial year.
Group
2018 2017
(Loss)/profit for the financial year (RM’000) (301,482) 98,886

Weighted average number of ordinary shares in issue (’000) 4,148,148 4,148,148
(Loss)/earnings per share (sen) (7.3) 2.4
(b) Diluted (loss)/earnings per share

The diluted (loss)/earnings per share of the Group is similar to the basic (loss)/earnings per share as the Group
has no dilutive potential ordinary shares as at the end of the reporting date. There has been no other transaction
involving ordinary shares or potential ordinary shares between the reporting date and the date of authorisation
of these financial statements.
13. PROPERTY, PLANT AND EQUIPMENT
Aircraft
engines,
airframes Office
and equipment, Assets not Pre-
service Aircraft Motor furniture Ramp yet in delivery
potential spares vehicles and fittings equipment operation payments Total
Group and Company RM‘000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018
Net book value
At 1 January 2018 1,413,376 59,995 580 6,459 5 210 115,278 1,595,903
Additions 156,454 6,217 – 455 (4) 63 – 163,185
Depreciation (112,190) (12,466) (170) (2,442) – – – (127,268)
Write off (Note 7) (4) (105) – – – (273) (7,462) (7,844)
Reclassification (Note 23) (998,629) (383) – – – – – (999,012)
At 31 December 2018 459,007 53,258 410 4,472 1 – 107,816 624,964
2017
Net book value
At 1 January 2017 1,504,031 56,463 944 7,013 42 – 115,278 1,683,771
Additions 3,437 21,028 364 1,586 4 210 – 26,629
Disposals – (4,315) (347) (32) (34) – – (4,728)
Depreciation (93,883) (12,959) (381) (2,108) (7) – – (109,338)
Write off (Note 7) (209) (222) – – – – – (431)
At 31 December 2017 1,413,376 59,995 580 6,459 5 210 115,278 1,595,903

The Digital Airline

13. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

The reconciliation of the gross carrying amount and the accumulated depreciation and impairment losses at the beginning
and end of the financial year is as follows:
Aircraft
engines,
airframes Office
and equipment, Assets not Pre-
service Aircraft Motor furniture Ramp yet in delivery
potential spares vehicles and fittings equipment operation payments Total
Group and Company RM‘000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018
Cost 670,312 143,067 3,588 16,955 1 – 107,816 941,739
Accumulated depreciation (211,305) (79,181) (3,178) (12,073) – – – (305,737)
Accumulated impairment
losses – (10,628) – (410) – – – (11,038)
459,007 53,258 410 4,472 1 – 107,816 624,964
2017
Cost 2,208,170 153,067 3,589 16,500 5 210 115,278 2,496,819
Accumulated depreciation (765,747) (82,444) (3,009) (9,631) – – – (860,831)
Accumulated impairment
losses (29,047) (10,628) – (410) – – – (40,085)
1,413,376 59,995 580 6,459 5 210 115,278 1,595,903
The reclassification amounting to RM999 million is related to asset held for sale (Note 23).
The additions and net book value of assets under hire purchase are as follows:
Group and Company
2018 2017
RM’000 RM’000
Assets under hire purchase:

Addition – 62
Net book value at the end of financial year 46 78
Included in property, plant and equipment of the Group and Company are aircraft pledged as security for borrowings
(Note 25) with a net book value of RM449 million (2017: RM1,404 million).
The beneficial ownership and operational control of certain aircraft pledged as security for borrowings rests with the
Group and the Company when the aircraft is delivered to the Group and the Company. Where the legal title to the
aircraft is held by the financiers during delivery, the legal title will be transferred to the Group and the Company only
upon settlement of the respective facilities.
Pre-delivery payments on aircraft purchases are denominated in US Dollar which represent initial payment made in
respect of the price of the aircraft and are deducted from the final price on delivery.
Pre-delivery payments as at 31 December 2018 are in respect of aircraft purchases which will be delivered from financial
year 2019 to 2027.

14. INVESTMENTS IN SUBSIDIARIES
Company
2018 2017
RM’000 RM’000
Unquoted investments, at cost * *
* Denotes RM10 (2017: RM21).
The details of the subsidiaries are as follows:
Country of Group’s effective

incorporation/ equity interest
Principal
place of 2018 2017
Name business % % Principal activities
AirAsia X Services Pty Ltd* Australia 100 100 Provision of management logistical
and marketing services
AAX Capital Ltd*+ Malaysia – 100 Dormant
AAX Leasing I Limited*# Malaysia – 100 Provision of engine leasing facilities
AAX Mauritius One Limited* Mauritius 100 100 Provision of aircraft leasing facilities
Fly X Limited* Malaysia 100 100 Dormant
AAX Aviation Capital Ltd Malaysia 100 – Holding company
(Incorporated on 14 March 2018)
AAX Leasing One Ltd Malaysia 100 – Provision of aircraft leasing facilities
(Incorporated on 14 March 2018)
AAX Leasing Two Ltd Malaysia 100 – Provision of aircraft leasing facilities
(Incorporated on 24 May 2018)
AAX Leasing Three Ltd Malaysia 100 – Provision of aircraft leasing facilities
(Incorporated on 24 May 2018)
AAX Leasing Four Ltd Malaysia 100 – Provision of aircraft leasing facilities
(Incorporated on 25 October
2018)
AAX Leasing Five Ltd Malaysia 100 – Provision of aircraft leasing facilities
2018)
AAX Leasing Six Ltd (Incorporated Malaysia 100 – Provision of aircraft leasing facilities
on 25 October 2018)
AAX Leasing Seven Ltd Malaysia 100 – Provision of aircraft leasing facilities
2018)
AAX Leasing Eight Ltd Malaysia 100 – Provision of aircraft leasing facilities
2018)
AAX Leasing Nine Ltd Malaysia 100 – Provision of aircraft leasing facilities
2018)
AAX Leasing Ten Ltd Malaysia 100 – Provision of aircraft leasing facilities
(Incorporated on 12 December
2018)
* Not audited by Ernst & Young.

+ Struck off on 21 February 2018
# Struck off on 16 April 2018.
Subsequent to year end, the Company incorporated AAX Leasing Eleven Ltd on 18 January 2019 for a total consideration
of USD1,000 equivalent to RM4,138.

The Digital Airline

15. INVESTMENT IN AN ASSOCIATE
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Unquoted investments, at cost 20,018 20,018 20,018 20,018

Group’s share of post-acquisition losses (20,018) (20,018) – –
– – 20,018 20,018
The details of the associate are as follows:
Group’s effective
equity interest
Country of 2018 2017

Name incorporation % % Principal activities
Thai AirAsia X Co., Ltd (“TAAX”)* Thailand 49 49 Commercial air transport services
* Audited by an affiliate of Ernst & Young Malaysia in Thailand.
TAAX is a private company for which there is no quoted market price available for its shares.
There are no contingent liabilities relating to the Group’s investment in TAAX.
TAAX is an operator of commercial air transport services which is based in Thailand. This associated company is a
strategic investment of the Company and forms an essential part of the Company’s growth strategy. It provides access
to a wider geographical market and network coverage in the provision of air transport services across the ASEAN region.
Set out below is the summarised financial information for the associate which is accounted for using the equity method:
Summarised statement of financial position
TAAX
2018 2017
RM’000 RM’000
Current:
Cash and cash equivalents 153,837 193,108
Other current assets 294,039 225,775
Total current assets 447,876 418,883
Non-current:
Assets 165,393 106,293
Current:
Financial liabilities (83,033) (69,605)
Other liabilities (507,547) (499,960)
Total current liabilities (590,580) (569,565)
Non-current:
Net assets/(liabilities) 11,115 (53,465)

15. INVESTMENT IN AN ASSOCIATE (CONT’D.)

Summarised statement of comprehensive income
TAAX
2018 2017
RM’000 RM’000
Revenue 1,523,905 1,154,285

Cost of sales (1,390,683) (1,043,393)
Other operating expenses (106,712) (92,472)
Interest expense (1,149) (2,538)
Other income 39,926 22,987
Profit before tax 65,287 38,869

Taxation 469 435
Profit after tax 65,756 39,304

Other comprehensive income/(loss) 196 (41)
Total comprehensive income 65,952 39,263
Dividend received from associate – –
Reconciliation of summarised financial information
TAAX
2018 2017
RM’000 RM’000
Opening net liabilities at 1 January (75,167) (92,757)

Total comprehensive income for the financial year 65,952 39,263
Effect of foreign exchange translation (3,111) 30
Elimination of unrealised profit from downstream sales (20,465) (21,703)
Closing net liabilities at 31 December (32,791) (75,167)
Cumulative unrecognised share in losses as at 1 January (61,399) (70,018)

Reduction of share of loss for the financial year 20,764 8,619
Cumulative unrecognised share in losses as at 31 December (40,635) (61,399)
16. INVESTMENT IN A JOINT VENTURE
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Unquoted investments, at cost 53,888 53,888 53,888 53,888

Group’s share of post-acquisition losses (53,888) (53,888) – –
Accumulated impairment losses – – (53,888) (53,888)
– – – –

The Digital Airline

16. INVESTMENT IN A JOINT VENTURE (CONT’D.)

The details of the joint venture are as follows:
Group’s effective
equity interest
Country of 2018 2017

Name incorporation % % Principal activities
PT Indonesia AirAsia Extra Indonesia 49 49 Commercial air transport services

(“IAAX”)*
* Audited by an affiliate of Ernst & Young Malaysia in Indonesia.
IAAX is a private company for which there is no quoted market price available for its shares.
There are no contingent liabilities relating to the Group’s investment in IAAX.
IAAX is an operator of commercial air transport services which is based in Indonesia. This joint venture company is a
strategic investment of the Company and forms an essential part of the Company’s growth strategy. It provides access
to a wider geographical market and network coverage in the provision of air transport services across the ASEAN
region.
In previous financial years, impairment losses were recognised due to the continuous losses incurred by the joint venture.
Set out below is the summarised financial information for the joint venture which is accounted for using the equity
method:
Summarised statement of financial position
IAAX
2018 2017
RM’000 RM’000
Current:
Cash and cash equivalents 1,336 6,666
Other current assets 316,869 315,090
Total current assets 318,205 321,756
Non-current:
Assets 12,044 41,779
Current:
Financial liabilities (516,794) (373,653)
Total current liabilities (536,313) (467,281)
Non-current:
Liabilities (5,679) (4,128)
Net liabilities (211,743) (107,874)

16. INVESTMENT IN A JOINT VENTURE (CONT’D.)

Summarised statement of comprehensive income
IAAX
2018 2017
RM’000 RM’000
Revenue 265,573 234,371

Cost of sales (322,326) (290,296)
Other operating expenses (21,402) (18,321)
Interest income 83 147
Interest expense – (46)
Other income 5,708 19,936
Loss before tax (72,364) (54,209)

Taxation (27,581) 14,718
Loss after tax (99,945) (39,491)

Other comprehensive income/(loss) 939 (581)
Total comprehensive loss (99,006) (40,072)
Dividend received from joint venture – –
Reconciliation of summarised financial information
IAAX
2018 2017
RM’000 RM’000
Opening net liabilities at 1 January (114,846) (77,343)

Total comprehensive loss for the financial year (99,006) (40,072)
Effect of foreign exchange translation (3,621) 9,541
Other adjustments (297) –
Elimination of unrealised profit from downstream sales (6,574) (6,972)
Closing net liabilities at 31 December (224,344) (114,846)
Cumulative unrecognised share in losses as at 1 January (77,641) (59,265)

Reduction of share of loss for the financial year (53,654) (18,376)
Cumulative unrecognised share in losses as at 31 December (131,295) (77,641)

The Digital Airline

17. DEFERRED TAX ASSETS
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
At 1 January 423,664 505,177 423,497 505,177

Recognised in profit or loss (Note 11) (73,903) (81,513) (74,423) (81,680)
Deferred tax effect on items taken to equity 36,034 – 36,034 –
Exchange rate differences (42) – – –
At 31 December 385,753 423,664 385,108 423,497
Presented after appropriate offsetting as follows:

Deferred tax assets 721,511 772,486 720,866 772,319
Deferred tax liabilities (335,758) (348,822) (335,758) (348,822)
385,753 423,664 385,108 423,497
The components and movements of deferred tax assets and liabilities during the financial years prior to offsetting are
as follows:
Deferred tax assets of the Group:
Unutilised
tax losses,
investment
allowances
and capital Sales in Derivatives
allowances advance and others Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2018 584,045 171,501 16,940 772,486

Recognised in profit or loss (98,432) (4,877) 16,342 (86,967)
Recognised directly to equity – – 36,034 36,034
Exchange rate differences – – (42) (42)
At 31 December 2018 485,613 166,624 69,274 721,511
At 1 January 2017 681,207 179,626 18,031 878,864

Recognised in profit or loss (97,162) (8,125) (1,091) (106,378)
At 31 December 2017 584,045 171,501 16,940 772,486
Deferred tax liabilities of the Group:
Property,
plant and
equipment Derivatives Total
RM’000 RM’000 RM’000
At 1 January 2018 343,279 5,543 348,822

Recognised in profit or loss (7,521) (5,543) (13,064)
At 31 December 2018 335,758 – 335,758
At 1 January 2017 365,110 8,577 373,687

At 31 December 2017 343,279 5,543 348,822

17. DEFERRED TAX ASSETS (CONT’D.)

The components and movements of deferred tax assets and liabilities during the financial years prior to offsetting are
as follows: (cont’d.)
Deferred tax assets of the Company:
Unutilised
tax losses,
investment
allowances
and capital Sales in Derivatives
allowances advance and others Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2018 584,045 171,501 16,773 772,319

Recognised in profit or loss (98,432) (4,877) 15,822 (87,487)
Recognised directly to equity – – 36,034 36,034
At 31 December 2018 485,613 166,624 68,629 720,866
At 1 January 2017 681,207 179,626 18,031 878,864

Recognised in profit or loss (97,162) (8,125) (1,258) (106,545)
At 31 December 2017 584,045 171,501 16,773 772,319
Deferred tax liabilities of the Company:
Property,
plant and
equipment Derivatives Total
RM’000 RM’000 RM’000
At 1 January 2018 343,279 5,543 348,822

At 31 December 2018 335,758 – 335,758
At 1 January 2017 365,110 8,577 373,687

At 31 December 2017 343,279 5,543 348,822
Deferred tax assets are mainly originating from unutilised tax incentives, unabsorbed capital allowances and tax losses
carry forward. As disclosed in Note 3(ii) to the financial statements, the deferred tax assets are recognised to the
extent that it is probable that future taxable profits will be available against which temporary differences can be utilised.
Estimating the future taxable profits involves significant assumptions, especially in respect of regulatory approvals for
prospective routes, aircraft delivery, fares, load factors, fuel price, maintenance cost and currency movements. These
assumptions have been built based on past performance and adjusted for non-recurring circumstances and a reasonable
growth rate. Based on these projections, management believes that the temporary differences will be utilised and has
recognised the deferred tax assets as at reporting date.

The Digital Airline

17. DEFERRED TAX ASSETS (CONT’D.)

Deferred tax assets not recognised in respect of the following items:
Group and Company
2018 2017
RM’000 RM’000
Unutilised investment tax allowances and other temporary differences 578,952 –
18. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES
Group and Company
2018 2017
Assets Liabilities Assets Liabilities

RM’000 RM’000 RM’000 RM’000
Current
Commodity derivatives
– held for trading – – 23,094 –
– cash flow hedge – 96,811 – –
Non-current
Commodity derivatives
– held for trading – – – –
– cash flow hedge – 33,675 – –
The full fair value of a hedging derivative is classified as a non-current assets or liabilities if the remaining maturity of
the hedged item is more than 12 months and, as a current assets or liabilities, if the maturity of the hedged item is
less than 12 months. Derivatives held for trading are those which do not qualify for hedge accounting. These derivatives
are denominated in US Dollar.
Fuel contracts
The outstanding number of barrels of Brent and fuel derivative contracts as at 31 December 2018 is 4,857,328 barrels
(2017: 364,862 barrels).
As at 31 December 2018, the Group and the Company had entered into Brent fixed swap contracts which represent
an additional 31% (2017: 13%) of the Group’s total expected fuel volume for the financial years 2019 to 2021. This is to
hedge against the fuel price risk that the Group and the Company is exposed to. Gains and losses recognised in the
hedging reserve in equity on Brent and fuel derivative contracts as of 31 December 2018 are recognised in the profit
or loss in the period or periods during which the hedged forecast transactions affect the profit or loss.
19. INVENTORIES
Group and Company
2018 2017
RM’000 RM’000
Consumables and in-flight merchandise 13,257 8,518

20. TRADE AND OTHER RECEIVABLES
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Non-current
Deposits (c) 800,767 555,674 800,767 555,674
Prepayments (d) 876,537 925,644 876,537 925,315
Deferred lease expenses (e) 36,891 32,031 36,891 32,031
1,714,195 1,513,349 1,714,195 1,513,020
Current
Trade receivables 66,228 159,130 66,228 159,130
Less: Allowance for impairment of
receivables (59,324) (57,089) (59,324) (57,089)
Trade receivables, net (a) 6,904 102,041 6,904 102,041
Other receivables 225,797 331,338 225,797 331,338

Less: Allowance for impairment of
receivables (165,157) (17,495) (165,157) (17,495)
(b) 60,640 313,843 60,640 313,843

Deposits (c) 26,047 26,804 25,992 26,724
Prepayments (d) 90,705 89,613 90,683 89,593
Deferred lease expenses (e) 5,541 5,087 5,541 5,087
Other receivables, net 182,933 435,347 182,856 435,247
189,837 537,388 189,760 537,288
Total trade and other receivables 1,904,032 2,050,737 1,903,955 2,050,308

Add: Deposits, cash and bank balances
(Note 22) 297,609 432,675 296,150 431,556
Add: Amount due from a subsidiary
(Note 21) – – 33,464 151,744
Add: Amount due from an associate
(Note 21) 67,287 110,274 82,949 81,305
Add: Amount due from a joint venture
(Note 21) – 44,010 – 44,010
Add: Amount due from related parties
(Note 21) 48,851 75,305 48,851 75,305
Less: Prepayments (967,242) (1,015,257) (967,220) (1,014,908)
Less: Deferred lease expense (42,432) (37,118) (42,432) (37,118)
Total financed assets carried at amortised

cost (Note 33 (a)) 1,308,105 1,660,626 1,355,717 1,782,202
The normal credit terms of the Group and of the Company range from 15 to 30 days (2017: 15 to 30 days).

The Digital Airline

20. TRADE AND OTHER RECEIVABLES (CONT’D.)

(a) Trade receivables
(i) Financial assets that are neither past due nor impaired
Trade receivables that are neither past due nor impaired for the Group and Company of RM4,095,000 (2017:
Group and Company of RM54,079,000) are substantially from companies with good collection track records.
(ii) Financial assets that are past due but not impaired
As of 31 December 2018, trade receivables for the Group and Company of RM2,809,000 (2017: RM47,962,000)
were past due but not impaired. These debts relate to a number of independent customers for whom there
is no recent history of default.
The ageing analysis of these trade receivables that are past due but not impaired are as follows:
Group and Company
2018 2017
RM’000 RM’000
Less than 30 days 2,809 20,561

Between 31 and 60 days – 25,381
Between 61 and 90 days – 223
Between 91 and 120 days – 7
More than 180 days – 669
2,809 47,962
(iii) Financial assets that are past due and impaired

The carrying amounts of trade receivables individually determined to be impaired are as follows:
Group and Company
2018 2017
RM’000 RM’000
More than 180 days 59,324 57,089

Less: Allowance for impairment of receivables (59,324) (57,089)
– –
The individually impaired trade receivables relate mainly to disputed balances with customers or balances for
which management is of the view that the amounts may not be recoverable.
Movements on the allowance for impairment of trade receivables are as follows:
Group and Company
2018 2017
RM’000 RM’000
At 1 January 57,089 746

Charged to profit or loss (Note 7) 2,235 56,343
At 31 December 59,324 57,089


(b) Other receivables
Other receivables include lease receivables, refunds of value-added tax receivable from the authorities in various
countries in which the Group and the Company operates.
(i) Financial assets that are neither past due nor impaired
Other receivables that are neither past due nor impaired for the Group and Company of RM51,035,000 (2017:
RM61,772,000) respectively are substantially with companies with good collection track records.
(ii) Financial assets that are past due but not impaired
As at 31 December 2018, other receivables for the Group and Company of RM9,605,000 (2017: RM252,071,000)
were past due. These debts relate to a number of external parties where there is no expectation of default.
The ageing analysis of these other receivables that are past due but not impaired are as follows:
Group and Company
2018 2017
RM’000 RM’000
Less than 30 days 4 8,970

Between 31 and 60 days 565 9,232
Between 61 and 90 days 751 8,942
Between 121 and 180 days 8,285 24,298
More than 180 days – 177,249
9,605 252,071
(iii) Financial assets that are past due and impaired

The carrying amounts of other receivables individually determined to be impaired are as follows:
Group and Company
2018 2017
RM’000 RM’000
More than 180 days 165,157 17,495

Less: Allowance for impairment of receivables (165,157) (17,495)
– –
The individually impaired other receivables relate mainly to disputed balances with customers or balances for
which management is of the view that the amounts may not be recoverable.
Movements on the allowance for impairment of other receivables are as follows:
Group and Company
2018 2017
RM’000 RM’000
At 1 January 17,495 13,789

Charged to profit or loss (Note 7) 147,662 3,706
At 31 December 165,157 17,495

The Digital Airline


(c) Deposits
Deposits of the Group and of the Company at the reporting date are with a number of external parties.
Included in deposits are deposits paid to lessors for leased aircraft and funds placed with lessor in respect of
maintenance of the leased aircraft. These deposits are denominated in US Dollar.
(d) Prepayments
Included in prepayments are prepayments for maintenance of aircraft, advances made for purchases of fuel, lease
of aircraft and maintenance of engines.
(e) Deferred lease expenses

Deferred lease expenses represent the differences between fair value of non-current rental deposits recognised at
initial recognition and the absolute deposit amount, which are amortised on a straight-line basis over the lease
terms ranging from 6 to 12 years (2017: 9 to 12 years).
The movement of deferred lease expense (current and non-current) is as follows:
Group and Company
2018 2017
RM’000 RM’000
At 1 January 37,118 37,135

Unwinding of discount – net 5,314 (17)
At 31 December 42,432 37,118
Representing:
Current 5,541 5,087
Non-current 36,891 32,031
42,432 37,118
The other classes within receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables
mentioned above. The Group and the Company do not hold any collateral as security.
The currency profile of trade and other receivables (excluding prepayments and deferred lease expense) are as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 63,194 36,731 63,194 36,731

US Dollar 815,548 874,272 815,548 874,272
Australian Dollar 1,214 18,562 1,159 18,482
Euro 352 473 352 473
Indian Rupee 4,582 2,893 4,582 2,893
Chinese Renminbi 1,406 5,394 1,406 5,394
Japanese Yen 4,371 8,282 4,371 8,282
Others 3,691 51,755 3,691 51,755
894,358 998,362 894,303 998,282

21. AMOUNT DUE FROM/(TO) A SUBSIDIARY, AN ASSOCIATE, A JOINT VENTURE AND RELATED PARTIES
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Amount due from

Non-current
Amount due from an associate 67,287 81,305 67,287 81,305
Amount due from a joint venture – 44,010 – 44,010
67,287 125,315 67,287 125,315
Current
Amount due from a subsidiary – – 33,464 151,744
Amount due from an associate – 28,969 15,662 –
Amount due from related parties 48,851 75,305 48,851 75,305
48,851 104,274 97,977 227,049
116,138 229,589 165,264 352,364
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Amount due to
Current
Amount due to a subsidiary – – (1,688) (1,747)
Amount due to an associate (7,777) – (56,902) (122,775)
Amount due to a joint venture – (122,827) – (122,827)
Amount due to related parties (97,381) (28,963) (99,723) (30,587)
(105,158) (151,790) (158,313) (277,936)
The amount due from a subsidiary, an associate and related parties are unsecured, interest free and repayable on
demand.
Included in amount due from an associate and a joint venture at Group of RM67,287,000 (2017: RM110,274,000) and
RMNil (2017: RM44,010,000) and at Company of RM82,949,000 (2017: RM81,305,000) and RMNil (2017: RM44,010,000)
respectively are unsecured, bearing effective weighted average interest rate at 9.6% and 10.6% per annum respectively
and repayable over 6 to 7 years.
The amount due to a subsidiary, an associate, a joint venture and related parties are unsecured, interest free and
repayable on demand.
The amount due from/(to) related parties are in respect of trading transactions. The normal credit terms of the Group
and the Company range from 30 to 60 days (2017: 30 to 60 days).

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21. AMOUNT DUE FROM/(TO) A SUBSIDIARY, AN ASSOCIATE, A JOINT VENTURE AND RELATED PARTIES (CONT’D.)
The currency profile of amount due from a subsidiary, an associate, a joint venture and related parties are as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 385 42,533 33,849 42,533

US Dollar 96,945 165,227 112,607 288,002
Others 18,808 21,829 18,808 21,829
116,138 229,589 165,264 352,364
Amount due from a subsidiary, an associate, a joint venture and related parties that are neither past due nor impaired
for the Group and the Company amounted to RM111,256,000 and RM155,191,000 (2017: RM215,032,000 and RM193,139,000)
respectively.
The ageing analysis of amount due from a subsidiary, an associate, a joint venture and related parties that are past
due but not impaired is as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Less than 6 months 4,881 2,019 10,072 68,674

More than 6 months 1 12,538 1 90,551
4,882 14,557 10,073 159,225
The maximum exposure to credit risk as at the reporting date is the carrying value of the amount due from a subsidiary,
an associate, a joint venture, and related parties mentioned above.
The Group and the Company have not made any impairment on these balances as management is of the view that
these amounts are recoverable as there is no history of default.
The currency profile of amount due to a subsidiary, an associate, a joint venture and related parties are as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000

US Dollar 72,780 135,916 118,091 260,438
Others 18,946 – 18,946 –
105,158 151,790 158,313 277,936

22. DEPOSITS, CASH AND BANK BALANCES

For the purposes of the statements of cash flows, cash and cash equivalents include the following:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Cash and bank balances 241,017 287,875 239,558 286,756

Deposits with licensed banks 56,592 144,800 56,592 144,800
Total deposits, cash and bank balances 297,609 432,675 296,150 431,556
Less:
Bank balances pledged as securities (29,412) (26,887) (29,412) (26,887)
Deposits pledged as securities (15,593) (14,341) (15,593) (14,341)
Cash and cash equivalents 252,604 391,447 251,145 390,328
The currency profile of deposits, cash and bank balances are as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000

US Dollar 41,089 38,058 41,089 38,058
Euro 673 803 673 803
Indian Rupee 6,920 8,026 6,920 8,026
Japanese Yen 12,797 43,219 12,797 43,219
Others 34,263 55,405 34,263 55,405
297,609 432,675 296,150 431,556
The Group’s and the Company’s weighted average effective interest rate of deposits at the reporting date is 3.15%
(2017: 3.36%) per annum.
The bank balances and deposits with licensed banks of the Group and of the Company amounting to RM29,412,000
and RM15,593,000 (2017: RM26,887,000 and RM14,341,000) respectively are pledged as securities for banking facilities
granted to the Group and of the Company.

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23. NON-CURRENT ASSETS HELD FOR SALE
Group and Company
2018 2017
RM’000 RM’000
At net book value:

Property, plant and equipment 999,012 –
The non-current assets held for sale are pledged as security for borrowings (Note 25).
The non-current assets held for sale are for certain aircraft and related equipments for which potential buyers have
been identified.
24. TRADE AND OTHER PAYABLES
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Current
Trade payables (a) 300,728 222,506 300,728 222,506
Other payables and accruals (b) 799,794 937,815 797,069 934,458
Deferred lease income (c) 1,990 3,809 1,990 3,809
1,102,512 1,164,130 1,099,787 1,160,773
Non-current
Other deposits 43,069 76,864 43,069 76,864
Deferred lease income (c) 9,698 16,409 9,698 16,409
52,767 93,273 52,767 93,273
Total trade and other payables 1,155,279 1,257,403 1,152,554 1,254,046

Add: Borrowings (Note 25) 687,052 861,970 687,052 861,970
Add: A mount due to a
subsidiary (Note 21) – – 1,688 1,747
Add: A mount due to an
associate (Note 21) 7,777 – 56,902 122,775
Add: A mount due to a
joint venture (Note 21) – 122,827 – 122,827
Add: Amount due to related
parties (Note 21) 97,381 28,963 99,723 30,587
Less: Deferred lease income (11,688) (20,218) (11,688) (20,218)
Total financial liabilities carried

at amortised cost (Note 33 (a)) 1,935,801 2,250,945 1,986,231 2,373,734

24. TRADE AND OTHER PAYABLES (CONT’D.)

(a) Trade payables
The credit term of trade payables granted to the Group and the Company is 7 to 90 days (2017: 7 to 90 days).
(b) Other payables and accruals

Included in other payables and accruals are operational expenses and passenger service charges payable to airport
authorities.
(c) Deferred lease income

Deferred lease income represent the differences between fair value of non-current rental deposits recognised at
initial recognition and the absolute deposit amount, which are amortised on a straight-line basis over the lease
terms ranging from 10 to 12 years (2017: 10 to 12 years).
The movement of deferred lease income (current and non-current) are as follows:
Group and Company
2018 2017
RM’000 RM’000
At 1 January 20,218 20,235

Unwinding of discount (8,530) (17)
At 31 December 11,688 20,218
Representing:
Current 1,990 3,809
Non-current 9,698 16,409
11,688 20,218
The currency profile of trade and other payables (excluding deferred lease income) are as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000

US Dollar 369,297 413,476 369,297 413,476
Euro 3,739 8,260 3,739 8,260
Indian Rupee 6,688 682 6,688 682
Japanese Yen 4,629 176,018 4,629 176,018
Others 30,113 184,070 30,113 184,070
1,143,591 1,237,185 1,140,866 1,233,828

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25. BORROWINGS
Weighted average
rate of finance Group and Company
2018 2017 2018 2017

% % RM’000 RM’000
Current
Secured:
– Term loans 4.13 3.39 192,313 188,501
– Hire purchase 3.96 3.80 11 27
192,324 188,528
Non-current
Secured:
– Term loans 4.13 3.39 494,694 673,392
– Hire purchase 3.96 3.80 34 50
494,728 673,442
Total borrowings 687,052 861,970
Total borrowings consist of the following banking facilities:
Group and Company
2018 2017
RM’000 RM’000
Fixed rate borrowings 323,610 449,853

Floating rate borrowings 363,442 412,117
687,052 861,970

25. BORROWINGS (CONT’D.)

The Group’s and Company’s borrowings are repayable as follows:
Group and Company
2018 2017
RM’000 RM’000
Not later than 1 year 192,324 188,528

Later than 1 year and not later than 5 years 416,323 526,744
Later than 5 years 78,405 146,698
687,052 861,970
The currency profile of borrowings are as follows:
Group and Company
2018 2017
RM’000 RM’000
Ringgit Malaysia 45 77
US Dollar 687,007 861,893
687,052 861,970
The carrying amounts and fair values of the fixed rate borrowings are as follows:
Group and Company
2018 2017
Carrying Fair Carrying Fair

amount value amount value
RM’000 RM’000 RM’000 RM’000
Term loans 323,565 324,810 449,776 451,327

Hire purchase 45 44 77 74
323,610 324,854 449,853 451,401
The fair values of floating rate borrowings approximates their carrying amounts, as the impact of discounting is not
significant.
The fair values of the fixed rate borrowings are based on cash flows discounted using borrowing rates that are reflective
of the Group’s and Company’s credit risk at the reporting date, at 3.57% (2017: 2.34%) per annum. The fair values of
fixed rate borrowings are within level 2 of the fair value hierarchy (refer Note 32(e)).

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25. BORROWINGS (CONT’D.)

Term loans
The term loans are for the purchase of new Airbus A330-300 aircraft. The repayment of the term loans is on a quarterly
basis over 10 to 12 years, with equal principal instalments, at a combination of floating rate of LIBOR + 0.8% and fixed
interest rates of between 2.34% to 3.23% (2017: 2.82% to 5.45%) per annum. The term loans are secured by the
following:
(a) Assignment of rights under contract with Airbus over each aircraft;
(b) Assignment of insurance of each aircraft; and
(c) Assignment of airframe and engine warranties of each aircraft.
Reconciliation of movement of liabilities to cash flows arising from financing activities are as follows:
Group and Company
Hire
Term loan purchase Total
RM’000 RM’000 RM’000
Balance as at 1 January 2018 861,893 77 861,970

Changes from financing cash flows
Repayment of borrowings (187,307) (32) (187,339)
Interest paid (28,286) (5) (28,291)
Total changes from financing cash flows 646,300 40 646,340
Other changes
Liability-related
Finance costs 28,286 5 28,291
Unrealised foreign exchange gains 12,421 – 12,421
Balance as at 31 December 2018 687,007 45 687,052
Group and Company
Hire
Term loan purchase Total
RM’000 RM’000 RM’000
Balance as at 1 January 2017 1,160,294 32 1,160,326

Changes from financing cash flows
Proceeds from borrowings – 62 62
Repayment of borrowings (199,859) (17) (199,876)
Interest paid (36,476) – (36,476)
Total changes from financing cash flows 923,959 77 924,036
Other changes
Liability-related
Finance costs 36,476 – 36,476
Unrealised foreign exchange gains (98,542) – (98,542)
Balance as at 31 December 2017 861,893 77 861,970

26. PROVISION FOR AIRCRAFT MAINTENANCE
Group and Company
2018 2017
RM’000 RM’000
Aircraft maintenance provision 1,013,689 789,043
The movements in the provision account are as follows:
Group and Company
2018 2017
RM’000 RM’000
At 1 January 789,043 591,574

Additions during the year 235,158 201,633
Reversal during the year (10,512) (4,164)
At 31 December 1,013,689 789,043
27. SHARE CAPITAL
Group and Company
2018 2017
RM’000 RM’000
Issued and fully paid up:

Ordinary shares:
At beginning of financial year 1,534,043 622,222
Transfer to no par value regime – 911,821
At end of financial year 1,534,043 1,534,043
The new Companies Act 2016 (the “Act”), which came into operation on 31 January 2017, abolished the concept of
authorised share capital and par value of share capital. Consequently, the amounts outstanding in the share premium
account become part of the Group and the Company share capital pursuant to the transitional provisions set out in
Section 618(2) of the Act. Notwithstanding this provision, the Group and the Company may within 24 months from
the commencement of the Act, use the amount outstanding in the share premium account of RM911,821,000 for purposes
as set out in Sections 618(3) of the Act. There is no impact on the number of ordinary shares in issue or the relative
entitlement of any of the members as a result of this transition.
28. EMPLOYEE SHARE OPTION SCHEME (“ESOS”)

On 11 October 2017, the ESOS had expired and the Board of Directors had resolved that there shall be no further
extension and/or renewal on the ESOS. Consequently, the share option reserve has been transferred to accumulated
losses as the ESOS has lapsed as at year end.
In previous financial years, the Group and the Company had implemented an ESOS which entails the issuance of up
to ten percent (10%) of the issued and paid-up share capital of the Group and of the Company at any one time
pursuant to the exercise of options to be granted under the ESOS, to full-time eligible employees of the Group and
of the Company (“ESOS Options”). The tenure of the ESOS shall be five (5) years with an option to extend for a
further five (5) years, subject to a maximum duration of ten (10) years. The ESOS is governed by the By-Laws which
were approved by the shareholders on 12 October 2012.

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28. EMPLOYEE SHARE OPTION SCHEME (“ESOS”) (CONT’D.)

The main features of the ESOS are as follows:
(a) The maximum number of ordinary shares, which may be allotted pursuant to the exercise of options under the
scheme, shall not exceed ten percent (10%) of the issued and paid-up share capital of the Group and of the
Company at any point in time during the duration of the scheme.
(b) The ESOS Committee duly authorised by the Board (and governed by the By-Laws) may, at its absolute discretion,
offer such number of ESOS Options to the eligible employees during the subsistence of the ESOS, provided that
such number of new shares issued under the ESOS Options granted shall not exceed the maximum number
permitted under the listing requirements of Bursa Malaysia, the By-Laws and any laws, regulations and guidelines
issued by other relevant authorities.
(c) An eligible employee who accepts an offer of ESOS Option must return, on or before the expiry date, the duly
completed prescribed acceptance form accompanied by the payment of the sum of RM1.00 as a consideration for
acceptance of that offer. If that offer is not accepted in such manner, the offer shall, upon the expiry date,
automatically lapse and be null and void.
(d) The options granted are exercisable in tranches of 25% at each anniversary of date of grant.
The shares to be allotted and issued upon any valid exercise of options will, upon such allotment and issuance, rank
pari passu in all respects with the existing and issued shares except that such shares so issued will not be entitled to
any dividends, rights, allotments and/or any other distributions which may be declared, made or paid to shareholders
prior to the date of allotment of such shares. The options shall not carry any right to vote at a general meeting of
the Company.
29. WARRANT AND OTHER RESERVES
Group and Company
Cash flow Share

hedge option
reserve reserve Total
RM’000 RM’000 RM’000
2018
At 1 January 2018 (795) – (795)
Net change in fair value, net of deferred tax (98,374) – (98,374)
At 31 December 2018 (99,169) – (99,169)
2017
At 1 January 2017 106,582 2,558 109,140
Net change in fair value (795) 241 (554)
Transferred to profit or loss (106,582) – (106,582)
Transferred to accumulated losses upon expiry of ESOS – (2,799) (2,799)
At 31 December 2017 (795) – (795)

29. WARRANT AND OTHER RESERVES (CONT’D.)

The share option reserve had been transferred to accumulated losses during the previous financial year following the
lapsing of the ESOS as disclosed in Note 28.
Warrant reserve
On 11 June 2015, the Company completed a renounceable rights issue of new ordinary shares of RM0.15 each in the
Company together with free detachable warrants for working capital purpose. As a result, 1,777,777,790 ordinary shares
of RM0.15 each were issued during the financial year ended 31 December 2015. These new ordinary shares rank pari
passu with the existing ordinary shares. Following the completion of the exercise, the issued and fully paid ordinary
shares of the Company consists of 4,148,148,177 ordinary shares of RM0.15 each with a share premium of RM911,820,644
and warrant reserve of RM62,222,223. Each warrant is entitled at any time during the exercise period, to subscribe for
one new ordinary share at the exercise price of RM0.46.
30. COMMITMENTS
(a) Capital commitments not provided for in the financial statements are as follows:
Group and Company
2018 2017
RM’000 RM’000
Property, plant and equipment – approved and contracted for:

– Later than 1 year and not later than 5 years 72,688,701 41,382,655
– Later than 5 years 43,036,513 66,491,199
115,725,214 107,873,854
Included in capital commitments as at 31 December 2018 is the purchase of aircraft over the next 9 years.
(b) Non-cancellable operating leases

The future minimum lease payments and sublease receipts under non-cancellable operating leases are as follows:
Group and Company
2018 2017
Future Future Future Future

minimum minimum minimum minimum
lease sublease lease sublease
payments receipts payments receipts
RM’000 RM’000 RM’000 RM’000
Not later than 1 year 987,091 291,298 949,216 285,525

Later than 1 year and not later than 5 years 4,968,902 1,290,295 3,889,129 1,142,098
Later than 5 years 708,527 174,113 2,753,187 578,813
6,664,520 1,755,706 7,591,532 2,006,436
The Group and the Company leases various aircraft and engines under non-cancellable operating lease agreements.
The lease terms are between 6 to 12 years (2017: 9 to 12 years).

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31. SIGNIFICANT RELATED PARTY TRANSACTIONS

In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other
significant related party disclosures.
The related parties of the Group and Company and their relationships at 31 December 2018 are as follows:
Name of Companies Relationship

AirAsia X Services Pty Ltd Subsidiary
AirAsia X Mauritius One Ltd Subsidiary
Thai AirAsia X Co., Ltd Associate
PT Indonesia AirAsia Extra Joint Venture
AirAsia Berhad Shareholder of the Company for which there is no control, significant influence
or joint control; common Directors and shareholders
Subsidiaries of AirAsia Berhad
– AirAsia SEA Sdn Bhd

(formerly known as AirAsia Global
Shared Services Sdn Bhd) Common Directors and shareholders
– Rokki Sdn Bhd Common Directors and shareholders
– BIGLIFE Sdn Bhd
(formerly known as Big Loyalty Sdn Bhd
and Think Big Digital Sdn Bhd) Common Directors and shareholders
– Big Pay Malaysia Sdn Bhd Common Directors and shareholders
– Ground Team Red Sdn Bhd Common Directors and shareholders
– Red Cargo Logistics Sdn Bhd Common Directors and shareholders
– AirAsia (Guangzhou)
Aviation Service Limited Common Directors and shareholders
– Asian Aviation Centre of
Excellence Sdn Bhd Common Directors and shareholders
Associates of AirAsia Berhad
– Thai AirAsia Co., Ltd Common Directors and shareholders

– PT Indonesia AirAsia Common Directors and shareholders
– AirAsia Japan Co. Ltd Common Directors and shareholders
– Philippines AirAsia Common Directors and shareholders
– Philippines AirAsia Inc Common Directors and shareholders
– AirAsia (India) Pvt Ltd Common Directors and shareholders
– AAE Travel Pte Ltd Common Directors and shareholders
Other related entities
– CaterhamJet Global Ltd Common Directors and shareholders

– Yummy Kitchen Sdn Bhd Common Directors and shareholders
– Tune Protect Re Ltd Common Directors and shareholders
– Tune Insurance Malaysia Berhad Common Directors and shareholders
All related party transactions were carried out on agreed terms and conditions.

31. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONT’D.)

Key management personnel are categorised as head or senior management officers of key operating divisions within
the Group and the Company. The key management compensation is disclosed in Note 31(g) below.
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
(a) Income:
Aircraft operating lease income for leased aircraft
– AAX Mauritius One Limited – – 365,464 338,853
– PT Indonesia AirAsia Extra 87,452 113,874 87,452 113,874
– Thai AirAsia X Co., Ltd 365,464 338,853 – –
Sale of ramp equipment to
Ground Team Red Sdn Bhd – 4,630 – 4,630
Commission on travel insurance for
passengers charged to Tune
Insurance Malaysia Berhad 3,234 2,266 3,234 2,266
Provision of lounge services to AirAsia Berhad 1,788 2,001 1,788 2,001
Provision of carried passenger services
to AirAsia Berhad – 9,021 – 9,021
Management fees charged to PT Indonesia AirAsia 3,098 2,117 – –
Sale of ticket and other ancillary revenue
to BIGLIFE Sdn Bhd 12,675 973 12,675 973
Sale of cargo transportation to
Red Cargo Logistics Sdn Bhd 88,407 – 88,407 –
(b) Recharges:
Recharges of expenses to
– Philippines AirAsia Inc 1,530 1,249 1,530 1,249
– Thai AirAsia Co., Ltd 315 519 315 519
– AirAsia Japan Co., Ltd 464 176 464 176
– PT Indonesia AirAsia 29 19 29 19
– Thai AirAsia X Co., Ltd 27,567 28,270 27,567 28,270
– PT Indonesia AirAsia Extra 2,991 8,620 2,991 8,620
Recharges of expenses by
– AirAsia Berhad (40,133) (41,627) (40,133) (41,627)
– AirAsia Japan Co., Ltd (3,089) (121) (3,089) (121)
– AirAsia (India) Pvt Ltd (926) (1,276) (926) (1,276)
– AirAsia SEA Sdn Bhd (1,948) – (1,948) –
– Ground Team Red Sdn Bhd (530) – (530) –
– AirAsia (Guangzhou) Aviation Service Limited 199 – 199 –

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Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
(c) Other charges:

Management fees charged by AirAsia X
Services Pty Ltd – – (10,254) (9,680)
Brand license fee charged by AirAsia Berhad (8,530) (8,530) (8,530) (8,530)
Office rental charged by AirAsia Berhad (3,360) (2,520) (3,360) (2,520)
Training services charged by Asian Aviation
Centre of Excellence Sdn Bhd – (12,851) – (12,851)
In-flight entertainment system and software
expense charged by Rokki Sdn Bhd (3,725) (3,906) (3,725) (3,906)
Charter air travel services charged by
CaterhamJet Global Ltd – (2,780) – (2,780)
Shared service management fee charged by
AirAsia SEA Sdn Bhd (3,239) (3,345) (3,239) (3,345)
Provision of food catering services charged by
Yummy Kitchen Sdn Bhd (1,486) (1,047) (1,486) (1,047)
Ground handling services charged by Ground
Team Red Sdn Bhd (21,894) (5,917) (21,894) (5,917)
Purchase of loyalty point from BIGLIFE
Sdn Bhd (6,140) (4,193) (6,140) (4,193)
(d) Premium collected on travel insurance

for passengers paid to Tune Insurance
Malaysia Berhad (12,934) (9,064) (12,934) (9,064)
(e) Receivables (Note 21):

– AAX Mauritius One Limited – – 33,464 151,744
– Philippines AirAsia
(including Philippines AirAsia Inc) – 10,943 – 10,943
– Thai AirAsia X Co., Ltd 67,287 110,274 82,949 81,305
– PT Indonesia AirAsia Extra – 44,010 – 44,010
– AirAsia Berhad 24,302 57,183 24,302 57,183
– Others 24,549 7,179 24,549 7,179
116,138 229,589 165,264 352,364

Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
(f) Payables (Note 21):

– Thai AirAsia X Co., Ltd 7,777 – 56,902 122,775
– PT Indonesia AirAsia Extra – 122,827 – 122,827
– Philippines AirAsia (including Philippines
AirAsia Inc) 19,806 – 19,806 –
– Rokki Sdn Bhd 1,670 1,373 1,670 1,373
– Tune Insurance Malaysia Berhad 2,233 5,130 2,233 5,130
– PT Indonesia AirAsia 18,862 6,960 21,203 8,584
– Thai AirAsia Co., Ltd 26,422 2,338 26,422 2,338
– AirAsia X Services Pty Ltd – – 1,688 1,747
– CaterhamJet Global Ltd – 708 – 708
– Others 28,388 12,454 28,389 12,454
105,158 151,790 158,313 277,936
(g) Key management personnel compensation:

– Basic salaries, bonus and allowances 8,857 9,806 8,857 9,806
– Defined contribution plan 852 1,176 852 1,176
9,709 10,982 9,709 10,982
Included in the key management compensation is Executive Director’s as disclosed in Note 6 and some key management
personnel remuneration.

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32. FINANCIAL RISK MANAGEMENT POLICIES

The Group’s and the Company’s financial risk management policies seek to ensure that adequate financial resources
are available for the development of the Group’s and the Company’s businesses whilst managing their market risk
(including fuel price risk, interest rate risk and foreign currency exchange risk), credit risk and liquidity and cash flow
risk. The Group and the Company operate within defined guidelines that are approved and reviewed periodically by
the Board of Directors to minimise the effects of such volatility on their financial performance.
The Board of Directors is responsible for setting the objectives and underlying principles of financial risk management
for the Group and the Company. The management team then establishes detailed policies such as risk identification
and measurement, exposure limits and risk management strategies. Risk management policies and procedures are
reviewed regularly to reflect changes in the market condition, and the Group’s and the Company’s activities.
The Group and the Company also seek to ensure that the financial resources that are available for the development
of the Group’s and the Company’s businesses are constantly monitored and managed vis-a-vis its ongoing exposure
to fuel price, interest rate, foreign currency exchange, credit, liquidity and cash flow risks.
The policies in respect of the major areas of treasury activities are as follows:
(a) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices such as foreign currency exchange rates, jet fuel prices and interest rates. The objective
of market risk management is to manage and control market risk exposure within acceptable parameters while
optimising the return on risk.
(i) Fuel price risk

The Group and the Company are exposed to jet fuel price risk arising from the fluctuations in the prices of
jet fuel. The Group and the Company rely on a related party for certain treasury activities, including hedging
of fuel price, which is contracted and managed by the related party. Any gain or loss arising from fuel hedging
is recognised when the risk transfers to the Group and the Company upon consumption of the fuel, within
“Aircraft fuel expenses” in Operating Expenses.
During the financial year ended 31 December 2018, the Group and the Company entered into Brent fixed swap
contracts. There were 4,857,328 barrels (2017: 364,862 barrels) (Note 18) of Brent and fuel contracts outstanding
as at 31 December 2018.
As at 31 December 2018, if USD denominated barrel had been USD5 higher/lower with all other variables held
constant, the impact on the post-tax profit/(loss) and equity for the year end equity are tabulated below:
2018 2017
+USD5 -USD5 +USD5 -USD5

RM’000 RM’000 RM’000 RM’000
Impact on post tax profit/(loss) – – 7,163 (7,163)

Impact on other comprehensive
income/(loss) 102,501 (102,501) – –

32. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.)

(a) Market risk (cont’d.)
(ii) Interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of a financial
instrument will fluctuate due to changes in market interest rates.
In view of the substantial borrowings taken to finance the acquisition of aircraft, the Group’s and the Company’s
income and operating cash flows are also influenced by changes in market interest rates. Interest rate exposure
arises from the Group’s and the Company’s floating rate borrowings and deposits. Surplus funds are placed
with reputable financial institutions at the most favourable interest rate.
At 31 December 2018, if interest rate on USD denominated borrowings had been 60 basis points higher/lower
with all other variables held constant, the impact on the post-tax (loss)/profit for the financial year are
tabulated below:
2018 2017
+60bps -60bps +60bps -60bps

RM’000 RM’000 RM’000 RM’000
Impact on post tax (loss)/profits (2,124) 2,124 (2,618) 2,618
(iii) Foreign currency risk

Apart from Ringgit Malaysia (“RM”), the Group and the Company transact business in various foreign currencies
including United States Dollar (“USD”), Australian Dollar (“AUD”), EURO, Indian Rupee (“INR”), Chinese Renminbi
(“RMB”) and Japanese Yen (“JPY”). In addition, the Group and the Company have significant borrowings in
USD (Note 25), mainly to finance the purchase of aircraft and pre-delivery payments in respect of the Group’s
and the Company’s firm order of Airbus A330-300 aircraft. Therefore, the Group and the Company are exposed
to currency exchange risk. These exposures are managed, to the extent possible, by natural hedges that arise
when payments for foreign currency payables are matched against receivables denominated in the same
foreign currency, or whenever possible by intragroup arrangements and settlements.
As at 31 December 2018, if RM had weakened/strengthened by 5% against the USD with all other variables
held constant, the impact on the post-tax (loss)/profit for the financial year are tabulated below:
2018 2017
+5% -5% +5% -5%

RM’000 RM’000 RM’000 RM’000
Impact on post tax (loss)/profits (15,299) 15,299 (15,532) 15,532
The exposure to other foreign currency risk of the Group and the Company is not material and hence, sensitivity
analysis is not presented.

The Digital Airline


(iii) Foreign currency risk (cont’d.)
The Group’s currency exposure is as follows:
USD AUD EURO INR RMB JPY Others

At 31 December 2018 Note RM‘000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Financial assets
Trade and other receivables 20 815,548 1,214 352 4,582 1,406 4,371 3,691
Amount due from an associate and
related parties 21 96,945 – – – – – 18,808
Deposits, cash and bank balances 22 41,089 83,602 673 6,920 7,994 12,797 34,263
953,582 84,816 1,025 11,502 9,400 17,168 56,762
Financial liabilities
Trade and other payables 24 369,297 29,037 3,739 6,688 16,085 4,629 30,113
Amount due to an associate, a joint
venture and related parties 21 72,780 1,395 – – – – 18,946
Borrowings 25 687,007 – – – – – –
Derivative financial libialities 18 130,486 – – – – – –
1,259,570 30,432 3,739 6,688 16,085 4,629 49,059
Net exposure (305,988) 54,384 (2,714) 4,814 (6,685) 12,539 7,703
The Group’s currency exposure is as follows:

Financial assets
Amount due from an associate, a
joint venture and related parties 21 165,227 – – – – – 21,829
Derivative financial assets 18 23,094 – – – – – –
1,100,651 65,268 1,276 10,919 32,582 51,501 128,989
Trade and other payables 24 413,476 176,661 8,260 682 49,387 176,018 184,070
Amount due to a joint venture and
related parties 21 135,916 1,716 – – – – –
Borrowings 25 861,893 – – – – – –
1,411,285 178,377 8,260 682 49,387 176,018 184,070
Net exposure (310,634) (113,109) (6,984) 10,237 (16,805) (124,517) (55,081)


(iii) Foreign currency risk (cont’d.)
The Company’s currency exposure is as follows:

Financial assets
Amount due from a subsidiary, an
associate, and related parties 21 112,607 – – – – – 18,808
969,244 83,302 1,025 11,502 9,400 17,168 56,762
Trade and other payables 24 369,297 26,472 3,739 6,688 16,085 4,629 30,113
Amount due to a subsidiary, an
associate and related parties 21 118,091 3,737 – – – – 18,946
Borrowings 25 687,007 – – – – – –
Derivative financial liabilities 18 130,486 – – – – – –
1,304,881 30,209 3,739 6,688 16,085 4,629 49,059
Net exposure (335,637) 53,093 (2,714) 4,814 (6,685) 12,539 7,703
The Company’s currency exposure is as follows:

Financial assets
associate, a joint venture and
related parties 21 288,002 – – – – – 21,829
Derivative financial assets 18 23,094 – – – – – –
1,223,426 64,069 1,276 10,919 32,582 51,501 128,989
Trade and other payables 24 413,476 173,304 8,260 682 49,387 176,018 184,070
Amount due to a subsidiary, an
related parties 21 260,438 3,339 – – – – –
Borrowings 25 861,893 – – – – – –
1,535,807 176,643 8,260 682 49,387 176,018 184,070
Net exposure (312,381) (112,574) (6,984) 10,237 (16,805) (124,517) (55,081)

The Digital Airline


(b) Credit risk
Credit risk is the risk of financial loss to the Group and the Company if a customer or a counter party to a financial
instrument fails to meet its contractual obligations and arises principally from the Group’s and the Company’s
receivables from customers, cash and cash equivalents and financial assets (derivative instruments).
The Group’s and the Company’s exposure to credit risk or the risk of counterparties defaulting arises mainly from
various deposits and bank balances, and receivables. As the Group and the Company do not hold collateral, the
maximum exposure to credit risk is represented by the total carrying amounts of these financial assets in the
financial position. Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit
approvals, limits and monitoring procedures.
Credit risk relating to receivables is minimised by regular monitoring and, in addition, credit risk is controlled as
the majority of the Group’s and the Company’s deposits and bank balances are placed with major financial institutions
and reputable parties. The Directors are of the view that the possibility of non-performance by the majority of
these financial institutions is remote on the basis of their financial strength and support of their respective governments.
The Group and the Company generally have no concentration of credit risk arising from trade receivables.
(c) Liquidity and cash flow risk

The Group’s and the Company’s policy on liquidity risk management is to maintain sufficient cash and cash
equivalents and to have available funding through adequate amounts of committed credit facilities and credit lines
for working capital requirements.
Whilst the Group’s and the Company’s current liabilities exceeded their current assets by RM623,678,000 and
RM625,683,000 (2017: RM1,113,867,000 and RM1,114,875,000) respectively, the Directors are of the view that the
Group and the Company will have sufficient cash flows for the next twelve months from the reporting date to
meet their cash flow requirements. The Directors believe that the Group and the Company are able to realise their
assets and discharge their liabilities in the normal course of business and that the financial position will be improved
through future operating profits and cash flows.
The Directors are committed to ensure that the Group and the Company will have sufficient funds to enable the
Group and the Company to meet their liabilities as they fall due and to carry on their business without significant
curtailment of operations. This includes raising funds from the market.
The table below analyses the Group’s and the Company’s financial liabilities into relevant maturity groupings based
on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table
below are the contractual undiscounted cash flows.
Under 1 year 1 – 2 years 2 – 5 years Over 5 years

Group Note RM’000 RM’000 RM’000 RM’000
At 31 December 2018
Term loans 25 216,908 193,890 258,981 80,596
Hire purchase 25 13 13 22 –
Trade and other payables 24 1,102,512 – – 52,767
Amount due to an associate 21 7,777 – – –
Amount due to related parties 21 97,381 – – –
1,424,591 193,903 259,003 133,363
At 31 December 2017
Term loans 25 215,667 208,747 376,645 136,809
Amount due to a joint venture 21 122,827 – – –
1,531,619 208,760 376,681 230,082


(c) Liquidity and cash flow risk (cont’d.)
Under 1 year 1 – 2 years 2 – 5 years Over 5 years

Company Note RM’000 RM’000 RM’000 RM’000
At 31 December 2018
Term loans 25 216,908 193,890 258,981 80,596
Amount due to a subsidiary 21 1,688 – – –
1,475,021 193,903 259,003 133,363
At 31 December 2017
Term loans 25 215,667 208,747 376,645 136,809
Amount due to a subsidiary 21 1,747 – – –
Amount due to a joint venture 21 122,827 – – –
1,654,408 208,760 376,681 230,082
(d) Capital risk management

The Group’s and the Company’s objectives when managing capital are to safeguard the Group’s and the
Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits
for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group and the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group and the Company monitors capital on the basis of the
gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total
borrowings (including “current and non-current borrowings” as shown in the Group’s and the Company’s
financial position) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the
Group’s and the Company’s financial position plus net debt.
The Group’s and the Company’s overall strategy remained unchanged from 2017. The gearing ratio as at
31 December 2018 and 2017 were as follows:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Total borrowings (Note 25) 687,052 861,970 687,052 861,970

Less: Cash and cash equivalents (Note 22) (252,604) (391,447) (251,145) (390,328)
Net debt 434,448 470,523 435,907 471,642

Total equity attributable to equity holders
of the Group and Company 573,662 988,606 591,030 1,007,120
Total capital 1,008,110 1,459,129 1,026,937 1,478,762
Gearing ratio 0.43 0.32 0.42 0.32
The Group and the Company are in compliance with all externally imposed capital requirements for the
financial years ended 31 December 2018 and 2017.

The Digital Airline


(e) Fair value measurement
The carrying amounts of cash and cash equivalents, trade and other current assets, and trade and other current
liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments.
The fair values of other classes of financial assets and liabilities are disclosed in the respective notes to financial
statements.
Determination of fair value and fair value hierarchy
The Group’s and the Company’s financial instruments are measured in the financial position at fair value. Disclosure
of fair value measurements are by level of the following fair value measurement hierarchy:
– Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
– Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);
– Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(Level 3).
The following table presents the Group’s and the Company’s assets and liabilities that are measured at fair value.
Level 1 Level 2 Level 3 Total

Group and Company RM’000 RM’000 RM’000 RM’000
31 December 2018
Liabilities
Derivatives used for hedging – (130,486) – (130,486)
Loans and borrowings – (324,854) – (324,854)
– (455,340) – (455,340)
31 December 2017
Assets
Financial assets at fair value through profit or loss
– Trading derivatives – 23,094 – 23,094
Liabilities
Loans and borrowings – (451,401) – (451,401)
Where fair value is determined using unquoted market prices in less active markets or quoted prices for similar
assets and liabilities, such instruments are generally classified as Level 2. In cases where quoted prices are generally
not available, the Group and the Company then determines fair value based upon valuation techniques that use
as inputs, market parameters including but not limited to yield curves, volatilities and foreign exchange rates. The
Group’s and the Company’s Level 2 financial instruments comprise fuel swap contracts. The fair value of fuel swap
contracts is determined using forward fuel price at the reporting date, with the resulting value discounted back
to present value.

33. FINANCIAL INSTRUMENTS

(a) Financial instruments by category
Assets
at fair value
through
profit Amortised
or loss cost Total
Group RM’000 RM’000 RM’000
31 December 2018
Assets as per statement of financial position
Trade and other receivables excluding prepayments and
deferred lease expense – 894,358 894,358
Amount due from an associate – 67,287 67,287
Amount due from related parties – 48,851 48,851
Deposits, cash and bank balances – 297,609 297,609
Total – 1,308,105 1,308,105
Other
financial
Derivatives liabilities at
used for amortised
hedging cost Total
31 December 2018
Liabilities as per statement of financial position
Derivative financial liabilities 130,486 – 130,486
Borrowings – 687,052 687,052
Trade and other payables excluding deferred lease income – 1,143,591 1,143,591
Amount due to an associate – 7,777 7,777
Amount due to related parties – 97,381 97,381
Total 130,486 1,935,801 2,066,287

The Digital Airline

33. FINANCIAL INSTRUMENTS (CONT’D.)

(a) Financial instruments by category (cont’d.)
Assets
at fair value
through
profit Amortised
or loss cost Total
31 December 2017
Amount due from a joint venture – 44,010 44,010
Derivative financial assets 23,094 – 23,094
Total 23,094 1,660,626 1,683,720
Other
financial
used for amortised
hedging cost Total
31 December 2017
Borrowings – 861,970 861,970
Amount due to a joint venture – 122,827 122,827
Total – 2,250,945 2,250,945


Assets
at fair value
through
profit Amortised
or loss cost Total
Company RM’000 RM’000 RM’000
31 December 2018
Amount due from a subsidiary – 33,464 33,464
Total – 1,355,717 1,355,717
Other
financial
used for amortised
hedging cost Total
31 December 2018
Derivative financial liabilities 130,486 – 130,486
Borrowings – 687,052 687,052
Amount due to a subsidiary – 1,688 1,688
Total 130,486 1,986,231 2,116,717

The Digital Airline


Assets
at fair value
through
profit Amortised
or loss cost Total
31 December 2017
Amount due from a subsidiary – 151,744 151,744
Amount due from a joint venture – 44,010 44,010
Derivative financial assets 23,094 – 23,094
Total 23,094 1,782,202 1,805,296
Other
financial
used for amortised
hedging cost Total
31 December 2017
Borrowings – 861,970 861,970
Amount due to a subsidiary – 1,747 1,747
Amount due to a joint venture – 122,827 122,827
Total – 2,373,734 2,373,734


(b) Credit quality of financial assets
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to
external credit ratings (if available) or to historical information about counterparty default rates:
Group Company
2018 2017 2018 2017

RM’000 RM’000 RM’000 RM’000
Counterparties without external credit rating

Group 1 – 283 – 283
Group 2 4,095 53,796 4,095 53,796
Total trade receivables that are neither

past due nor impaired (Note 20 (a)(i)) 4,095 54,079 4,095 54,079
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000
Deposits, cash and bank balances

AAA to A– 295,064 418,289 293,605 417,170
BBB to BBB– 2,250 14,015 2,250 14,015
297,314 432,304 295,855 431,185

Cash on hand 295 371 295 371
Total 22 297,609 432,675 296,150 431,556
Group Company
2018 2017 2018 2017

Note RM’000 RM’000 RM’000 RM’000

related parties
Group 1 15,083 4,920 15,083 4,920
Group 2 96,173 210,112 140,108 188,219
Total 21 111,256 215,032 155,191 193,139
Derivative financial assets

AA+ to A+ – 3,249 – 3,249
A to BBB– – 9,209 – 9,209
No rating – 10,636 – 10,636
Total 18 – 23,094 – 23,094
Group 1 – New customers/related parties (Less than 6 months)
Group 2 – Existing customers/related parties (more than 6 months) with no defaults in the past
All other receivables and deposits are substantially with existing counterparties with no history of default.

The Digital Airline

34. SEGMENTAL INFORMATION

Management has determined the operating segments based on reports that are reviewed and used to make strategic
decisions by the Group’s Chief Executive Officer (“CEO”) who is identified as the chief operating decision maker.
The Group’s CEO considers the business from a geographic perspective. The operating segments have been identified by
each Air Operator Certificate (“AOC”) held under the AirAsia brand, and are categorised as Malaysia, Thailand and Indonesia.
The Group’s CEO asseses the performance of the operating segments based on revenue and net operating profit.
The Group’s operations by geographical segments are as follows:
Elimination
Malaysia Thailand Indonesia adjustments Total
RM’000 RM’000 RM’000 RM’000 RM’000
2018
Segment results
Revenue 4,571,376 1,523,905 265,573 (452,916) 5,907,938
Operating expenses
– Staff costs (422,845) (116,691) (30,310) – (569,846)
– D
epreciation of property, plant
and equipment (127,268) (5,523) (2,071) – (134,862)
– Aircraft fuel expenses (1,876,060) (552,898) (141,051) – (2,570,009)
– Maintenance and overhaul (485,389) (194,140) (56,410) 181,283 (554,656)
– User charges (508,121) (189,015) (46,812) – (743,948)
– Aircraft operating lease expenses (898,654) (269,900) (63,170) 271,633 (960,091)
– Other operating expenses (464,398) (169,228) (11,317) – (644,943)
Other income 7,414 22,150 5,708 – 35,272
Operating (loss)/profit (203,945) 48,660 (79,860) – (235,145)

Finance income 55,773 – 83 – 55,856
Finance costs (70,611) (1,149) – – (71,760)
Net operating (loss)/profit (218,783) 47,511 (79,777) – (251,049)

Net foreign exchange gain 16,011 17,776 7,413 – 41,200
Other losses (23,889) – – – (23,889)
(Loss)/profit before taxation (226,661) 65,287 (72,364) – (233,738)
2017
Segment results
Revenue 4,578,674 1,154,285 234,371 (452,727) 5,514,603
Operating expenses
– Staff costs (421,259) (123,155) (34,452) – (578,866)
– Depreciation of property, plant
and equipment (109,338) (4,741) (2,166) – (116,245)
– Aircraft fuel expenses (1,466,681) (318,813) (81,574) – (1,867,068)
– Maintenance and overhaul (652,922) (168,299) (66,232) 148,219 (739,234)
– User charges (508,507) (156,374) (25,092) – (689,973)
– Aircraft operating lease expenses (944,599) (257,864) (80,780) 304,508 (978,735)
– Other operating expenses (413,811) (106,619) (18,321) – (538,751)
Other income 51,015 22,987 15,016 – 89,018
Operating profit/(loss) 112,572 41,407 (59,230) – 94,749
Finance income 33,204 – 147 – 33,351
Finance costs (61,224) (2,538) (46) – (63,808)
Net operating profit/(loss) 84,552 38,869 (59,129) – 64,292
Net foreign exchange gain 106,517 – 4,920 – 111,437
Other losses (4,265) – – – (4,265)
Profit/(loss) before taxation 186,804 38,869 (54,209) – 171,464

34. SEGMENTAL INFORMATION (CONT’D.)
Elimination
Malaysia Thailand Indonesia adjustments Total
RM’000 RM’000 RM’000 RM’000 RM’000
2018
Segment Assets
Non-current assets^ 2,792,199 165,393 12,044 (67,287) 2,902,349
Investment in an associate and a
joint venture – – – – –
Current assets 1,549,372 447,876 318,205 (7,777) 2,307,676
4,341,571 613,269 330,249 (75,064) 5,210,025
Segment Liabilities
Non-current liabilities (1,594,859) (11,574) (5,679) 67,287 (1,544,825)
Current liabilities (2,173,050) (590,580) (536,313) 7,777 (3,292,166)
(3,767,909) (602,154) (541,992) 75,064 (4,836,991)
2017
Segment Assets
Non-current assets^ 3,658,231 106,293 41,779 (125,315) 3,680,988
Investment in an associate and a
joint venture – – – – –
Current assets 1,105,949 418,883 321,756 (151,796) 1,694,792
4,764,180 525,176 363,535 (277,111) 5,375,780
Segment Liabilities
Non-current liabilities (1,555,758) (9,076) (4,128) 125,315 (1,443,647)
Current liabilities (2,219,816) (569,565) (467,281) 151,796 (3,104,866)
(3,775,574) (578,641) (471,409) 277,111 (4,548,513)
^ Excluding investment in an associate and a joint venture.

The Digital Airline

34. SEGMENTAL INFORMATION (CONT’D.)
2018 2017
RM’000 RM’000
(a) Reconciliation of segment revenue to reported revenue:

Segment revenue 5,907,938 5,514,603
Less: Revenue from an associate and a joint venture which
were not consolidated (1,336,562) (935,929)
4,571,376 4,578,674
(b) Reconciliation of segment (loss)/profit before taxation to reported

(loss)/profit before taxation:
Segment (loss)/profit before taxation (233,738) 171,464
Add: E
xpenses from an associate and a joint venture which
were not consolidated 7,077 15,340
(226,661) 186,804
(c) Reconciliation of segment assets to reported total assets:

Segment assets 5,210,025 5,375,780
Less: Assets of an associate and a joint venture which
were not consolidated (868,454) (611,600)
4,341,571 4,764,180
(d) Reconciliation of segment liabilities to reported total liabilities:

Segment liabilities (4,836,991) (4,548,513)
Add: Liabilities of an associate and a joint venture which
were not consolidated 1,069,082 772,939
(3,767,909) (3,775,574)

35. UNCONSOLIDATED STRUCTURED ENTITIES

The Group and the Company has set up Merah X entities, special purpose companies (“SPC”) pursuant to aircraft
related borrowings obtained from various financial institutions. Under the arrangement, the Group and the Company
enters into an Aircraft Instalment Sale Agreement with the SPC, permitting the company to possess and operate each
of the Airbus A330-300 aircraft financed under the facility.
The SPC are orphan trust companies in which the Group and the Company has no equity interest.
The details of the Merah X entities are as follows:
Name Country of incorporation Purpose
Merah X Dua Limited Malaysia Purchase of 3 Airbus A330-300 aircraft
Merah X Tiga Limited Malaysia Purchase of 2 Airbus A330-343 aircraft
Merah X Enam Limited Malaysia Purchase of 2 Airbus A330-300 aircraft
The SPCs do not incur any losses or earn any income during the financial year ended 31 December 2018. The aircraft
and the corresponding term loans and finance costs associated with the SPC have been recognised by the Group and
Company upon the purchase of the aircraft.
The Group and the Company do not provide any financial support to the SPC or have any contractual obligation to
make good the losses, if any.
36. OTHER MATTERS

On 2 May 2018, the Company received a sealed Writ of Summons and Statement of Claim (“Claim”) filed at the High
Court of Malaya at Shah Alam (“Court”) from Messrs Skrine (“Skrine”), the solicitors acting for Malaysia Airports (Sepang)
Sdn Bhd (“MASSB”). Pursuant to the Claim, MASSB claimed for RM34.9 million against the Company for outstanding
airport charges, rent payment and late payment charges allegedly payable up to 31 March 2018. The Company maintains
that it has fully paid any outstanding airport charges and rent rightfully due during the financial year. The legal
proceedings in respect of the Claim are still ongoing, and the remaining amount in dispute of RM4.0 million is in relation
to late payment charges.
On 12 December 2018, the Company received another Claim from Skrine on behalf of MASSB for RM26.7 million being
the alleged outstanding passenger service charges (“PSC”) and shortfall of RM23 in PSC per passenger which was
purportedly effective from 1 July 2018. The Company states that it is not obliged to and will not collect from its
passenger this RM23 now claimed pending the conclusion of legal proceedings.
The Company is vigorously defending the proceedings relating to the above claims through its solicitors.
37. SUBSEQUENT EVENTS

On 27 March 2019, the Company had entered into sub-sale arrangements through AAX Leasing Eleven Ltd (“AAXLEL”)
(an indirect subsidiary of the Company through AAX Aviation Capital Ltd) for the disposal of three (3) aircraft owned
by the Company to Jerdons Baza Leasing 1048 DAC (pertaining to aircraft with Manufacturing Serial Number (“MSN”)
1048), Jerdons Baza Leasing 1066 DAC (pertaining to aircraft with MSN 1066) and Jerdons Baza Leasing 1075 DAC
(pertaining to aircraft with MSN 1075) for an aggregate consideration of USD164.3 million (approximately RM680.0
million) (before adjustments).
On the same date, AAXLEL had entered into lease agreements with Jerdons Baza Leasing 1048 DAC (pertaining to
aircraft with MSN 1048), Jerdons Baza Leasing 1066 DAC (pertaining to aircraft with MSN 1066) and Jerdons Baza
Leasing 1075 DAC (pertaining to aircraft with MSN 1075). Simultaneously, the Company entered into sub-leases with
AAXLEL as sub-lessor and the Company as sub-lessee to continue operating the abovementioned aircraft in its fleet.
38. COMPARATIVE FIGURES

Certain comparative amounts of the Group and of the Company have been reclassified to conform with current year’s
presentation.

The Digital Airline
Statement by Directors
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
We, Tan Sri Rafidah Aziz and Datuk Kamarudin Bin Meranun, being two of the Directors of AirAsia X Berhad, do hereby
state that, in the opinion of the Directors, the accompanying financial statements set out on pages 152 to 231 are drawn
up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements
of the Companies Act 2016 in Malaysia, so as to give a true and fair view of the financial position of the Group and of the
Company as at 31 December 2018 and of their financial performance and cash flows for the financial year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors dated 28 March 2019.
Tan Sri Rafidah Aziz Datuk Kamarudin Bin Meranun

Director Director
Statutory declaration
PURSUANT TO SECTION 251(1)(B) OF THE COMPANIES ACT 2016
I, Wong Mee Yen, the officer primarily responsible for the financial management of AirAsia X Berhad, do solemnly and
sincerely declare that the accompanying financial statements set out on pages 152 to 231 are, in my opinion, correct and
I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory
Declarations Act, 1960.
Subscribed and solemnly declared by the

abovenamed Wong Mee Yen
at Kuala Lumpur in the Federal Territory
on 28 March 2019. Wong Mee Yen
MIA NO. 6997
Before me,
Commissioner for Oaths

Kuala Lumpur

Independent auditors’ report TO THE MEMBERS OF AIRASIA X BERHAD
(INCORPORATED IN MALAYSIA)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion
We have audited the financial statements of AirAsia X Berhad, which comprise the statements of financial position as at
31 December 2018 of the Group and of the Company, and statements of profit or loss, statements of comprehensive income,
statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies and other explanatory information,
as set out on pages 152 to 231.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and
of the Company as at 31 December 2018, and of their financial performance and their cash flows for the year then ended
in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”)
and the requirements of the Companies Act 2016 in Malaysia.
Basis for opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of
the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence and other ethical responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct
and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities
in accordance with the By-Laws and the IESBA Code.
Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the Group and of the Company for the current year. These matters were addressed in the context of our
audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our
audit procedures, including the procedures performed to address the matters below, provide the basis of our audit opinion
on the accompanying financial statements.
Key risk Our response
Revenue recognition from scheduled flights and ancillary

services

Refer to Note 4 to the financial statements for revenue and Our audit sought to place a high level of reliance on the
statement of financial position for sales in advance. Group’s and the Company’s information technology systems
and key controls which the management relies on in recording
For the financial year ended 31 December 2018, revenue from revenue from scheduled flights and ancillary services. As the
scheduled flights and ancillary services represents 83% (2017: flight reservation system is managed by a third party vendor,
83%) of the total revenue of the Group and of the Company. we obtained and evaluated the external auditors’ report on
the operating effectiveness of the key controls over the flight
The Group and the Company rely on an integrated information reservation system and revenue accounting system.
technology system (including the flight reservation system
and revenue accounting system) in accounting for its We involved our information technology specialists to test the
scheduled flights and ancillary revenue. Such information operating effectiveness of the automated controls of the other
system processes large volumes of data comprising individually key modules of the information technology system. We also
low value transactions. tested the non-automated controls in place to ensure completeness
and accuracy of revenue recognised, including timely updating
The flight reservation system is managed by a third party vendor. of approved changes to base fares and ancillary fares.

The Digital Airline
Independent auditors’ report

to the members of AirAsia X Berhad (Incorporated in Malaysia)
Key audit matters (cont’d.)
Revenue recognition from scheduled flights and ancillary

services (cont’d.)
The accounting for revenue from scheduled flights and In addition, we also performed, amongst others, the following
ancillary services are susceptable to management override procedures:
through the posting of manual journal entries either in the (a) Performed data analytics to reconcile the revenue
underlying ledgers or as a consolidation journal. recognised in respect of scheduled flights and ancillary
services and the amount of sales in advance to the
The above factors gave rise to higher risk of material payments received from passengers;
misstatement in the timing and amount of revenue from
(b) Performed procedures to corroborate the occurence of
scheduled flights and ancillary services recognised. Accordingly,
revenue by tracing samples of revenue recognised to
we identified revenue recognition to be an area of focus.
settlement reports from financial institutions;
(c) Tested the reconciliation of data between the flight
reservation system and the general ledger to corroborate
the completeness of revenue; and
(d) Performed cut-off procedures to determine if revenue
from scheduled flights and ancillary services are recorded
in the correct accounting period.
Provision for aircraft maintenance
Refer to Note 3(iii) and Note 26 to the financial statements In addressing this area of audit focus, our audit procedures
for provision for aircraft maintenance. As at 31 December included, amongst others:
2018, the provision for aircraft maintenance of the Group (a) we obtained an understanding of management’s process
and of the Company amounted to RM1,014 million (2017: over estimating aircraft maintenance for aircraft held
RM789 million). under operating leases;
(b) we recalculated the aircraft maintenance and evaluated
As of 31 December 2018, the Group and the Company operate
the key assumptions adopted by management in
twenty five (25) aircraft under operating leases. In respect
estimating the aircraft return obligations for each aircraft
of these operating lease arrangements, the Group and the
by discussing with the Group’s and the Company’s
Company are contractually obligated to maintain the aircraft
relevant fleet maintenance engineers the aircraft utilisation
during the lease period and to redeliver the aircraft to the
statistics; and
lessors at the end of the lease term, in certain pre-agreed
conditions. (c) in addition, we obtained an understanding of the
redelivery terms of operating leases by comparing the
Management estimates the overhaul, restoration and redelivery estimated costs and comparable actual costs incurred
costs and accrues such costs over the lease term. The by the Group and the Company.
calculation of such costs includes management assumptions
and estimates in respect of the anticipated rate of aircraft
utilisation which includes flying hours and flying cycles and
calendar months of the asset as used. These aircraft utilisation
and calendar months affect the extent of the restoration
work that will be required and the expected costs of such
overhaul, restoration and redelivery at the end of the lease
term.
Given the significant amounts of these provisions and the

extent of management judgment and estimates required,
we considered this area as a key audit matter.

Key audit matters (cont’d.)
Recognition of deferred tax assets
Refer to Note 3(ii) and Note 17 to the financial statements Our audit procedures included, amongst others:
for deferred tax. (a) we evaluated the key assumptions applied in respect
of revenue growth rates and operating costs by
As at 31 December 2018, the Group and the Company comparing them to past actual outcome, supplemented
recognised deferred tax assets amounting to RM386 million by expectations of the future economic conditions; and
and RM385 million (2017: RM424 million and RM423 million),
(b) we also assessed the adequacy of the Group’s and the
respectively, in relation to unutilised investment allowance,
Company’s disclosures on the deferred tax assets in
unabsorbed capital allowances, unused tax losses, sales in
Note 3(ii) and Note 17 to the financial statements.
advance and other deductible temporary differences (“unused
tax losses/allowances and deductible temporary differences”)
to the extent that it is probable that future taxable profits
will be available against which these deductible temporary
differences can be utilised.
The assessment of future taxable profits is a complex process

and requires significant management’s judgments, in particular
the judgments applied in respect of the expected future
economic conditions of the industry which impact the revenue
growth rates and operating costs of the entities being
assessed.
In view of the significance of the amount and the significant

judgements involved, we consider this to be a key audit
matter.
Fair value derivative financial assets/liabilties
Refer to Note 18 to the financial statements for derivative In addressing this area of audit focus, our audit procedures
financial assets/liabilities. included, amongst others:
(a) involved our valuation specialists to assess the
As at 31 December 2018, the Group’s and the Company’s methodology and the appropriateness of the valuation
derivative financial liabilities amounted to RM130 million (2017: models used to estimate the fair value of the derivative
RM23 million derivative financial assets). Net losses on financial instruments;
effective cash flow hedges during the financial year amounting
(b) our valuation specialists also evaluated the key inputs
to RM98 million (2017: RM107 million) were recognised in
applied in the valuation model such as contractual cash
other comprehensive income. The gain or loss arising from
flows, risk free rates, interest rate volatility and forward
ineffective hedges is recognised immediately in the income
rates, by benchmarking them with external data; and
statement.
(c) obtained third party confirmations to corroborate the
The Group and the Company enter into various derivative existence and valuation of the derivative financial
financial instruments as part of the Group’s overall hedging instruments.
strategy to manage its exposure to fuel price risk. These
instruments comprise fuel options and fuel swap contracts.
Valuation models used to estimate the fair value of derivative

financial instruments can be subjective in nature and involve
various assumptions regarding future market conditions, such
as risk free rates, interest rate volatility and forward rates.
The use of different valuation techniques and assumptions
could produce significantly different estimates of fair value
and/or hedge effectiveness.
Due to the complexity involved and the magnitude of the

balance, we consider the fair value measurement of derivative
financial instruments to be an area of audit focus.

The Digital Airline

Information other than the financial statements and auditors’ report thereon
The Directors of the Company are responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements of the Group and of the Company and our
auditors’ report thereon, which we obtained prior to the date of this auditors’ report, and the annual report 2018, which is
expected to be made available to us after the date of this auditors’ report.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we
do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the
other information identified above and, in doing so, consider whether the other information is materially inconsistent with
the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’
report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
When we read the annual report 2018, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to the Directors of the Company and take appropriate action.
Responsibilities of the Directors for the financial statements

The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company
that give a true and fair view in accordance with MFRS, IFRS and the requirements of the Companies Act 2016 in Malaysia.
The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation
of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the
Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Directors either intends to liquidate the Group or the Company
or to cease operations, or has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing,
we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the
Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.

Auditors’ responsibilities for the audit of the financial statements (cont’d.)

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing,
we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (cont’d.)
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of
the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause
the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company,
including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit
of the financial statements of the Group and of the Company for the current year and are therefore the key audit matters.
We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we
have not acted as auditors, are disclosed in Note 14 to the financial statements.
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies
Act 2016 and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Ernst & Young Lim Eng Hoe

AF: 0039 No. 03403/12/2020 J
Chartered Accountants Chartered Accountant

28 March 2019

The Digital Airline
Analysis of Shareholdings
AS AT 20 MARCH 2019
DISTRIBUTION OF SHAREHOLDINGS
Class of shares Ordinary shares (“Shares”)
Voting rights One vote per ordinary share
No. of % of % of Issued
Shareholdings Shareholders Shareholders No. of Shares Share Capital
Less than 100 323 0.74 14,527 0.00
100 – 1,000 5,393 12.74 4,571,335 0.11
1,001 – 10,000 16,344 38.62 102,703,133 2.48
10,001 – 100,000 17,235 40.73 600,864,414 14.49
100,001 to less than 5% of issued shares 3,018 7.13 2,444,288,523 58.93
5% and above of issued shares 2 0.00 995,706,620 24.00
42,315 99.98 4,148,148,552 100.00
SUBSTANTIAL SHAREHOLDERS
The direct and indirect shareholdings of the shareholders holding more than 5% in AirAsia X Berhad (“AirAsia X”) based on the
Register of Substantial Shareholders are as follows:-
DIRECT INDIRECT
No. of % of No. of % of
Name Shares Held Issued Shares Shares Held Issued Shares
Tune Group Sdn. Bhd. (“TGSB”) 739,602,874(1) 17.83 – –
AirAsia Berhad (“AAB”) 570,728,502 13.76 – –
Tan Sri Anthony Francis Fernandes 111,587,228(2) 2.69 1,310,331,376(4) 31.59
Datuk Kamarudin bin Meranun 370,709,939(3) 8.94 1,310,331,376(4) 31.59
NOTES:
(1) Shares held through TGSB, CIMSEC Nominees (Tempatan) Sdn. Bhd., Kenanga Nominees (Tempatan) Sdn. Bhd. and RHB Capital Nominees (Tempatan)
Sdn. Bhd.
(2) Shares held through CIMB Group Nominees (Tempatan) Sdn. Bhd, and through own name.
(3) Shares held through CIMB Group Nominees (Tempatan) Sdn. Bhd., AllianceGroup Nominees (Tempatan) Sdn. Bhd. and through own name.
(4) Deemed interested by virtue of Section 8 of the Companies Act, 2016 through a shareholding of more than 20% in TGSB and AAB.

List of Directors’ Shareholdings AS AT 20 MARCH 2019
The interests of the Directors of AirAsia X in the Shares and options over shares in the Company and its related corporations
based on the Company’s Register of Directors’ Shareholdings are as follows:-
DIRECT INDIRECT
Name Shares Held Issued Shares Shares Held Issued Shares
Tan Sri Rafidah Aziz 175,000(1) 0.00* 100,000(2) 0.00*
Datuk Kamarudin bin Meranun 370,709,939(3) 8.94 1,310,331,376(5) 31.59
Tan Sri Anthony Francis Fernandes 111,587,228(4) 2.69 1,310,331,376(5) 31.59
Lim Kian Onn – – 175,833,356(6) 4.24
Dato’ Fam Lee Ee – – – –
Tan Sri Asmat bin Kamaludin 297,400(1) 0.01 40,000(6) 0.00*
Dato’ Yusli bin Mohamed Yusoff – – – –
NOTES:
* Negligible.
(1) Shares held through CIMSEC Nominees (Tempatan) Sdn. Bhd.
(2) Deemed interest held under the name of her spouse (deceased).
(3) Shares held through CIMB Group Nominees (Tempatan) Sdn. Bhd., AllianceGroup Nominees (Tempatan) Sdn. Bhd. and through own name.
(4) Shares held through CIMB Group Nominees (Tempatan) Sdn. Bhd. and through own name.
(5) Deemed interested by virtue of Section 8 of the Companies Act, 2016 through a shareholding of more than 20% in TGSB and AAB.
(6) Deemed interest held through his spouse and children.
There were no options offered to and exercised by, or shares granted to and vested in Directors during the financial year.

The Digital Airline
List of Top 30 Largest Shareholders

AS AT 20 MARCH 2019
No. of % of Issued
Name of Shareholders Shares Held Share Capital
1. AirAsia Berhad 570,728,502 13.76
2. RHB Capital Nominees (Tempatan) Sdn Bhd 424,978,118 10.25
RHB Islamic Bank Berhad - Pledged Securities Account for Tune Group Sdn Bhd
3. HSBC Nominees (Asing) Sdn Bhd 194,503,356 4.69

Exempt An for Bank Julius Baer & Co. Ltd. (Singapore Bch)
4. CIMSEC Nominees (Tempatan) Sdn Bhd 166,250,000 4.01

Pledged Securities Account for Tune Group Sdn Bhd (EDG&GCM)
5. Kamarudin bin Meranun 164,178,957 3.96

6. CIMB Group Nominees (Tempatan) Sdn Bhd 154,430,982 3.72
Pledged Securities Account for Kamarudin bin Meranun (GCM CBM-SKY X)
7. Citigroup Nominees (Tempatan) Sdn Bhd 138,352,200 3.34

Exempt An for AIA Bhd
8. Kenanga Nominees (Tempatan) Sdn Bhd 116,525,000 2.81

ECM Libra Partners Sdn Bhd - Pledged Securities Account for Tune Group Sdn Bhd
9. CIMB Group Nominees (Tempatan) Sdn Bhd 87,303,728 2.10

Pledged Securities Account for Anthony Francis Fernandes (GCM CBM-SKY X)
10. AllianceGroup Nominees (Tempatan) Sdn Bhd 52,100,000 1.26

Export-Import Bank of Malaysia Berhad for Kamarudin bin Meranun
11. Tune Group Sdn Bhd 31,849,756 0.77

12. Citigroup Nominees (Tempatan) Sdn Bhd 30,745,700 0.74
Employees Provident Fund Board (RHBISLAMIC)

JPMCB NA for Vanguard Emerging Markets Stock Index Fund

JPMCB NA for Vanguard Total International Stock Index Fund
15. Anthony Francis Fernandes 24,283,500 0.59

Pledged Securities Account for Fo Jie Song
17. Citigroup Nominees (Asing) Sdn Bhd 19,006,858 0.46

CBNY for Emerging Market Core Equity Portfolio DFA Investment Dimensions Group Inc

Exempt An for UBS AG Singapore (Foreign)

CBNY for DFA Emerging Markets Small Cap Series
20. Teo Tuan Kwee 10,030,000 0.24

21. RHB Nominees (Tempatan) Sdn Bhd 10,000,000 0.24
Pledged Securities Account for Yong Loy Huat

Exempt An for Citibank New York (Norges Bank 1)
23. RHB Nominees (Tempatan) Sdn Bhd 9,335,000 0.23

Pledged Securities Account For Tan Siew Li
24. Toh Ean Hai 9,000,000 0.22

Pledged Securities Account for Tan Siew Li
26. Gan Hai Toh 7,459,000 0.18

GSCO LLC for Acadian Non-US Small-Cap Long-Short Equity Fund, LLC
28. Loh You Fook 6,500,000 0.16

29. CIMSEC Nominees (Tempatan) Sdn Bhd 6,358,300 0.15
CIMB Bank for Shelina binti Razaly Wahi (MH6755)
30. RHB Capital Nominees (Tempatan) Sdn Bhd 6,272,400 0.15

Pledged Securities Account for Su Ming Keat

Analysis of Warrant Holdings AS AT 20 MARCH 2019
DISTRIBUTION OF WARRANT HOLDINGS
No. of Warrant Issued 888,888,895
No. of Warrant Exercised 375
No. of Warrant Unexercised 888,888,520
Maturity date 8 June 2020
Voting rights The warrant holders are not entitled to attend meetings of the members of the Company
and vote at such meetings or participate in any distribution and/or offer of further securities
in the Company until and unless such warrant holders exercise their warrants into ordinary
shares of the Company.
No. of % of % of Issued
Size of Warrant holdings Warrant holders Warrant holders No. of Warrants Warrant Capital
Less than 100 1,288 10.25 61,919 0.01
100 – 1,000 2,002 15.93 1,100,649 0.12
1,001 – 10,000 5,752 45.77 24,433,510 2.75
10,001 – 100,000 2,869 22.83 101,452,142 11.41
100,001 to less than 5% of issued warrants 653 5.20 457,301,464 51.45
5% and above of issued warrants 3 0.02 304,538,836 34.26
12,567 100.00 888,888,520 100.00

The Digital Airline
List of Directors’ Warrant Holdings

AS AT 20 MARCH 2019
The interests of the Directors of AirAsia X in the warrant in the Company and its related corporations based on the Company’s
Register of Directors’ warrant holdings are as follows:-
DIRECT INDIRECT
Name Warrants Held Issued Warrants Warrants Held Issued Warrants
Tan Sri Rafidah Aziz 37,500(1) 0.00* – –
Datuk Kamarudin bin Meranun 98,798,772(2) 11.11 280,785,294(4) 31.59
Tan Sri Anthony Francis Fernandes 18,707,941(3) 2.10 280,785,294(4) 31.59
Lim Kian Onn – – 42,392,862(5) 4.77
Dato’ Fam Lee Ee – – – –
Tan Sri Asmat bin Kamaludin – – – –
Dato’ Yusli bin Mohamed Yusoff – – – –
NOTES:
* Negligible.
(1) Warrants held through CIMSEC Nominees (Tempatan) Sdn. Bhd.
(2) Warrants held through CIMB Group Nominees (Tempatan) Sdn. Bhd. and through own name.
(3) Warrants held through CIMB Group Nominees (Tempatan) Sdn. Bhd.
(4) Deemed interested by virtue of Section 8 of the Companies Act, 2016 through a shareholding of more than 20% in Tune Group Sdn. Bhd. and
AirAsia Berhad.
(5) Deemed interest held through his spouse and children.
There were no options offered to and exercised by, or shares granted to and vested in Directors during the financial year.

List of Top 30 Largest Warrant Holders AS AT 20 MARCH 2019
% of Issued
No. of Warrant
Name of Warrant Holders Warrants Held Capital
1. AirAsia Berhad 122,298,964 13.76
2. Tune Group Sdn. Bhd. 109,875,000 12.36
3. CIMB Group Nominees (Tempatan) Sdn. Bhd. 72,364,872 8.14

Pledged Securities Account for Kamarudin bin Meranun (GCM CBM-SKY X)
4. HSBC Nominees (Asing) Sdn. Bhd. 42,167,862 4.74

Exempt An for Bank Julius Baer & Co. Ltd. (Singapore Bch)
5. CIMSEC Nominees (Tempatan) Sdn. Bhd. 28,125,000 3.16

Pledged Securities Account for Tune Group Sdn. Bhd. (EDG&GCM )
6. Kamarudin bin Meranun 26,433,900 2.97
7. Citigroup Nominees (Tempatan) Sdn. Bhd. 18,770,688 2.11

Exempt An for AIA Bhd.

Pledged Securities Account for Anthony Francis Fernandes (GCM CBM-SKY X)

Pledged Securities Account for Tune Group Sdn. Bhd. (GCM CBM-SKY X)
10. Satkunarajah a/l Rajendra 14,400,000 1.62
11. AMSEC Nominees (Tempatan) Sdn. Bhd. 8,300,000 0.93

Pledged Securities Account for Tan Peng Nguang
12. Choong Yean Yaw 6,726,000 0.76
13. Tan Boon Han 5,551,500 0.62
14. Tong Yun Mong 5,420,000 0.61
15. AllianceGroup Nominees (Tempatan) Sdn. Bhd. 5,000,000 0.56

Pledged Securities Account for Chong Vit Sian (800509)
16. Ng Kok Hin 4,725,300 0.53
17. Kenanga Nominees (Tempatan) Sdn. Bhd. 4,281,900 0.48

Pledged Securities Account for Heng Yong Kang @ Wang Yong Kang (08HE101Q1-008)
18. Public Nominees (Tempatan) Sdn. Bhd. 4,000,000 0.45

Pledged Securities Account for Poh Seng Kian (TJJ/KEN)
19. Ong Ah Choon @ Ong Kai Choon 3,935,700 0.44
20. Maybank Nominees (Tempatan) Sdn. Bhd. 3,450,000 0.39

Pledged Securities Account for Chee Kwok Fai
21. Yeo Poh Ann 3,350,000 0.38

Pledged Securities Account for Koh Boon Poh (008)
23. How Wong Yuh 3,100,000 0.35
24. Lim Chow Sen @ Lim Chow Soon 3,000,000 0.34
25. Yong Kar Keong 2,830,000 0.32
26. CIMSEC Nominees (Tempatan) Sdn. Bhd. 2,500,000 0.28

CIMB for Mohamad Zekri bin Haji Ibrahim (PB)
27. Ng Loo Soon 2,500,000 0.28

ECM Libra Partners Sdn. Bhd. - Pledged Securities Account for Tune Group Sdn. Bhd.
29. Tham Kok Wing 2,270,000 0.26
30. Chan Pheng Hock 2,018,600 0.23

The Digital Airline
Corporate Directory
AS AT 21 MARCH 2019
Office and Stations Beijing

Room 32092
TAIWAN
Taipei
MALAYSIA Terminal 2
C-O-260-2 Terminal 1, Taoyuan
Beijing Capital International
Kuala Lumpur International Airport, 15 Hang Zhan
Airport,
S Rd. Dayuan Dist., Taoyuan City,
AIRASIA X PASSENGER OPS OFFICE, Beijing, China
Taiwan, ROC
LS2-3-110, Level 3, Terminal KLIA2,
KL International Airport, Chengdu
Jalan KLIA2, 64000 KLIA, AirAsia X Berhad L318, SOUTH KOREA
Sepang, Selangor, Malaysia International Departure, Chengdu
Shuangliu International Airport, Seoul
Chengdu, Sichuan Province, China Room 2063, Incheon International
NEW ZEALAND Airport Passenger Terminal, 272
Auckland Shanghai Gonghang ro, Jung gu, Incheon
Station Duty Phone: +86 180 190 93493 City, 22382
AirAsia X Berhad, GM32
Rep. of Korea
(Ground Mezzanine), Auckland
International Airport, Auckland Room 2PS-10-02, Terminal 2,
Shanghai Pudong International Jeju
2150, New Zealand
Airport 201202 China 1st Floor, Jeju International
Airport, 2 Gonghang-ro, Jeju-si,
AUSTRALIA Xi'An Jeju-do, Rep. of Korea
International Zone 1-177, Terminal
Australia Customer Hotline: Busan
3 Of Xi'an Xianyang international
+61 2 8188 2133
Airport, China 3rd Floor, International Terminal
of Gimhae International Airport,
Gold Coast
Wuhan 108 Gonghangjinipno, Gangseo-
AirAsia X Berhad (Lot 1 Site 49) Gu, Busan, S. Korea
GB17-18, 2nd Floor, International
Level 1, Airport Central, 1 Eastern
Terminal, TianHe International
Avenue, QLD 4225, Australia
Airport, Wuhan
JAPAN
Melbourne
Chongqing Japan Call Center: 050 6864 8181
AirAsia X Berhad
Rm31400, Level 1, Terminal 3,
Level 2, T2
Chongqing Jiangbei International Sapporo
Melbourne Airport
Airport International Terminal Bldg 2F,
Tullamarine. VIC
New Chitose Airport Bibi, Chitose,
Zhengzhou Hokkaido, Japan 066-0012
Sydney
AirAsia X Berhad
AirAsia X Berhad
Zhengzhou Henan International Tokyo
Sydney International Airport
Airport Office Phone: 81 3 5755 9918
Level 3-1062
Airport Dr, Sydney NSW 2020
TianJin Room S7K0 International
Perth Room B312, Terminal 1, Tianjin Passenger Building, 2-6-5
Binhai International Airport, Dongli Haneda Kuko, Otaku, Tokyo, Japan
Unit 1L29 Terminal 1, Perth Airport
District, Tianjin 144-0041
WA 6105, Australia
ChangSha Osaka
CHINA Minus One Floor, T2, Chang Sha 2F Airline North Building
Huang Hua International Airport, Kansai International Airport
Hangzhou Chang Sha City, Hu Nan Province, Senshukuko Kita 1
Room 2025A, International China Izumisano-shi Osaka
Terminal, Hangzhou Xiaoshan 549-0001
International Airport, Xiaoshan LanZhou
District, Hangzhou, Zhejiang Lanzhou Mei Travel Hotel, No. 199, Fukuoka
Province, China Zhongchuan Airport, Yongdeng 4F International Terminal Building
County, Lanzhou City, Gansu Fukuoka Airport
Province 812-0851
T +81 92 292 4018

INDIA
Jaipur
AirAsia X Berhad
Terminal 2, Jaipur International
Airport, Sidharth Nagar Near
Jawahar Circle, Jaipur Rajasthan
-302027
Delhi
AirAsia X Berhad, Room
No 103,
Level 4,
Indira Gandhi International
Airport, Terminal 3,
New Delhi - 110037
Amritsar
AirAsia X Berhad Room no:-4,
1st floor,
Departure side, Shri Guru Ram
Dass Ji International Airport
Amritsar, Punjab -143101
SAUDI ARABIA
Jeddah
AirAsia X Berhad Office No. L02-
B10-003 Alnakhil Trading Center,
No. 12, Madinah Road, King
Abdulaziz International Airport,
Hajj Terminal, KSA
UNITED STATES OF AMERICA

Honolulu, Hawaii
AirAsia X Berhad
Daniel K. Inouye International
Airport
300 Rodgers Boulevard #55
Honolulu, Hawaii 96819 USA
INDONESIA
Denpasar
AirAsia X Berhad
Ngurah Rai International Airport

The Digital Airline
Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Thirteenth Annual General Meeting of AirAsia X Berhad (734161-K)
(“AAX” or “the Company”) will be held at c/o CAE Kuala Lumpur Sdn. Bhd., Lot PT25B, Jalan KLIA
S5, Southern Support Zone, Kuala Lumpur International Airport, 64000 Sepang, Selangor Darul
Ehsan, Malaysia on Wednesday, 26 June 2019 at 10.00 a.m. for the following purposes:-
AS ORDINARY BUSINESS
1. To receive the Audited Financial Statements together with the Reports of the Directors and Auditors
thereon for the financial year ended 31 December 2018.
Please refer to Note A.
2. To approve the Non-Executive Directors’ Remuneration as described in Note B for the period from 27
June 2019 until the next Annual General Meeting of the Company to be held in the year 2020. (Ordinary
Please refer to Note B. Resolution 1)
3. To re-elect the following Directors of the Company who retire by rotation pursuant to Rule 119 of the
Company’s Constitution and who being eligible had offered themselves for re-election:-
(Ordinary
i) Tan Sri Rafidah Aziz; and Resolution 2)
(Ordinary
ii) Tan Sri Anthony Francis Fernandes. Resolution 3)
4. To re-appoint Messrs Ernst & Young as Auditors of the Company and to authorise the Directors to (Ordinary
determine their remuneration. Resolution 4)
AS SPECIAL BUSINESS
To consider and if thought fit, to pass, with or without modifications, the following Resolutions:
5. AUTHORITY TO ALLOT SHARES PURSUANT TO SECTIONS 75 AND 76 OF THE COMPANIES ACT,

2016
“THAT pursuant to Sections 75 and 76 of the Companies Act, 2016 and subject to the approval of
relevant authorities, the Directors of the Company be and are hereby empowered to issue shares in
the Company from time to time and upon such terms and conditions and for such purposes and to
such persons whomsoever as the Directors may, in their absolute discretion, deem fit provided that
the aggregate number of shares issued pursuant to this resolution during the preceding 12 months
does not exceed 10% of the total number of issued shares (excluding treasury shares) of the Company
for the time being and that the Directors be and also empowered to obtain approval for the listing
of and quotation for the additional shares so issued on the Main Market of Bursa Malaysia Securities
Berhad AND THAT such authority shall continue in force until the conclusion of the next Annual
General Meeting of the Company after the approval was given or at the expiry of the period within
which the next Annual General Meeting is required to be held after the approval was given, whichever
is earlier unless revoked or varied by an ordinary resolution of the Company at a general meeting.” (Ordinary
Please refer to Note C. Resolution 5)
6. PROPOSED RENEWAL OF EXISTING SHAREHOLDERS’ MANDATE AND NEW SHAREHOLDERS’

MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING
NATURE (“PROPOSED MANDATE”)
“THAT approval be and is hereby given for the renewal of the existing shareholders’ mandate and
new shareholders’ mandate for the Company to enter into recurrent related party transactions of a
revenue or trading nature with the related parties (“Recurrent Related Party Transactions”) as set
out in Section 2.3 of the Circular to Shareholders dated 30 April 2019 (“Circular”), subject further to
the following:
i) the Recurrent Related Party Transactions are entered into in the ordinary course of business
which are:
(a) necessary for the day-to-day operations;
(b) on normal commercial terms and transaction price which are not more favourable to the
related parties than those generally available to the public;
(c) undertaken on arm’s length basis; and
(d) not to the detriment of the minority shareholders of the Company;

ii) the shareholders’ mandate is subject to annual renewal and this shareholders’ mandate shall only
continue to be in full force until:
(a) the conclusion of the next Annual General Meeting (“AGM”) of the Company following the
AGM at which this shareholders’ mandate is approved, at which time it will lapse, unless by
an ordinary resolution passed at that AGM, such authority is renewed;
(b) the expiration of the period within which the next AGM after the date is required to be held
pursuant to Section 340(2) of the Companies Act, 2016 (“Act”) (but shall not extend to such
extension as may be allowed pursuant to Section 340(4) of the Act); or
(c) revoked or varied by an ordinary resolution passed by the shareholders of the Company in
a general meeting of the Company,
whichever is the earliest.
THAT the Directors of the Company and/or any one of them be and are hereby authorised to
complete and do all such acts and things and take all such steps and to execute all such transactions,
deeds, agreements, arrangements and/or undertakings as the Directors in their discretion deem fit,
necessary, expedient and/or appropriate in the best interest of the Company in order to implement,
finalise and give full effect to the Recurrent Related Party Transactions with full powers to assent to
any modifications, variations and/or amendments thereto.
AND THAT as the estimates given for the Recurrent Related Party Transactions specified in Section
2.3 of the Circular being provisional in nature, the Directors of the Company and/or any one of them
be and are hereby authorised to agree to the actual amount or amounts thereof provided always that
such amount or amounts comply with the procedures set out in Section 2.6 of the Circular.” (Ordinary
Please refer to Note D. Resolution 6)
OTHER ORDINARY BUSINESS
7. To transact any other business of which due notice shall have been given.
By Order of the Board
JASMINDAR KAUR A/P SARBAN SINGH

(MAICSA 7002687)
LAU YEN HOON
(MAICSA 7061368)
Company Secretaries
Kuala Lumpur
30th day of April 2019

The Digital Airline
Notice of Annual General Meeting
NOTES ON APPOINTMENT OF PROXY

Non-Executive Directors’
a) Pursuant to the Securities Industry (Central Depositories) (Foreign Benefits
Ownership) Regulations 1996 and Rule 41(a) of the Company’s (per attendance by each
Constitution, only those Foreigners (as defined in the Constitution)
who hold shares up to the current prescribed foreign ownership limit director or committee
of 45.0% of the total number of issued shares of the Company, on a member) Board Directors Board Committees
first-in-time basis based on the Record of Depositors to be used for the
forthcoming Annual General Meeting (“AGM”), shall be entitled to vote. Meeting allowance 1,000 1,000
A proxy appointed by a Foreigner not entitled to vote, will similarly not
be entitled to vote. Consequently, all such disenfranchised voting rights Other Non-Executive Directors’ Benefits
shall be automatically vested in the Chairman of the AGM.
b) A member must be registered in the Record of Depositors at 5.00 p.m. Insurance premiums on Up to a total amount of RM100,000
on 19 June 2019 (“General Meeting Record of Depositors”) in order medical coverage, and for all Non-Executive Directors
to attend and vote at the AGM. A depositor shall not be regarded as other claimable expenses
a Member entitled to attend the AGM and to speak and vote thereat incurred in the course of
unless his name appears in the General Meeting Record of Depositors.
Any changes in the entries on the Record of Depositors after the carrying out their duties.
abovementioned date and time shall be disregarded in determining the
rights of any person to attend and vote at the AGM. The Shareholder’s approval is being sought under Ordinary Resolution
c) A member entitled to attend and vote is entitled to appoint not 1 for the payment of the remuneration to Non-Executive Directors for
more than two (2) proxies (or in the case of a corporation, to appoint the period from 27 June 2019 up to the next AGM of the Company in
representative(s) in accordance with Section 333 of the Companies Act, accordance with the remuneration structure as set out above.
2016), to attend and vote in his stead. There shall be no restriction as to
the qualification of the proxy(ies). C. Authority to allot shares pursuant to Sections 75 and 76 of the
Companies Act, 2016 (“the Act”) (Ordinary Resolution 5)
d) The Proxy Form in the case of an individual shall be signed by the
appointor or his attorney, and in the case of a corporation, either Ordinary Resolution 5 has been proposed for the purpose of renewing
under its common seal or under the hand of an officer or attorney duly the general mandate for issuance of shares by the Company under
authorised. Sections 75 and 76 of the Act (“General Mandate”). Ordinary Resolution
5, if passed, will give the Directors of the Company authority to issue
e) Where a member appoints two (2) proxies, the appointments shall be ordinary shares in the Company at their discretion without having to
invalid unless he specifies the proportion of his shareholdings to be first convene another general meeting. The General Mandate will, unless
represented by each proxy. revoked or varied by the Company in a general meeting, expire at the
f) Where a Member of the Company is an exempt authorised nominee conclusion of the next Annual General Meeting (“AGM”) or the expiration
which holds ordinary shares in the Company for multiple beneficial of the period within which the next AGM is required by law to be held,
owners in one securities account (“omnibus account”), there is no limit whichever is earlier.
to the number of proxies which the exempt authorised nominee may
appoint in respect of each omnibus account it holds. The General Mandate, if granted, will provide the flexibility to the
Company for any future fund-raising activities, including but not
g) The Proxy Form or other instruments of appointment shall not be treated limited to further placing of shares for the purposes of funding future
as valid unless deposited at the Registered Office of the Company at investment project(s), repayment of bank borrowing, working capital
Unit 30-01, Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar and/or acquisition(s) and thereby reducing administrative time and costs
South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Wilayah Persekutuan, associated with the convening of additional shareholders meeting(s).
Malaysia not less than forty-eight (48) hours before the time set for
holding the meeting. Faxed copies of the duly executed form of proxy As at the date of this Notice, the Company has not issued any new
are not acceptable. shares under the General Mandate obtained in its previous AGM.
h) Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad, all resolutions set out in this Notice D. Proposed renewal of existing shareholders’ mandate and new
will be put to vote by way of poll. shareholders’ mandate for Recurrent Related Party Transactions of a
revenue or trading nature (“Proposed Mandate”) (Ordinary Resolution 6)
EXPLANATORY NOTES: Ordinary Resolution 6, if passed, will allow the Group to enter into
A. Audited Financial Statements together with the Reports of the Recurrent Related Party Transactions of a revenue or trading nature
Directors and Auditors thereon for the financial year ended 31 pursuant to the provisions of the Main Market Listing Requirements
December 2018 of Bursa Malaysia Securities Berhad. Please refer to the Circular to
Shareholders dated 30 April 2019 for further information.
This Agenda item is meant for discussion only as under the provisions
of Section 248(2) and 340(1) of the Companies Act, 2016. The audited
financial statements do not require the formal approval of shareholders Personal data privacy notice:
and hence, the matter will not be put forward for voting. By submitting an instrument appointing a proxy(ies) and/or representative(s)
to attend, speak and vote at the Annual General Meeting and/or any
adjournment thereof, a member of the Company (i) consents to the
B. To approve the Non-Executive Directors’ Remuneration for the period collection, use and disclosure of the member’s personal data by the Company
from 27 June 2019 until the next Annual General Meeting (“AGM”) of (or its agents) for the purpose of the processing and administration by
the Company to be held in the year 2020 (Ordinary Resolution 1) the Company (or its agents) of proxies and representatives appointed
The Nomination and Remuneration Committee (“NRC”) recommended for the Annual General Meeting (including any adjournment thereof) and
and the Board of Directors affirmed that the Non-Executive Directors’ the preparation and compilation of the attendance lists, minutes and
Remuneration for the period from 27 June 2019 until the next AGM of other documents relating to the Annual General Meeting (including any
the Company to be held in the year 2020 shall remain unchanged as per adjournment thereof), and in order for the Company (or its agents) to
the financial year ended 31 December 2018 as shown below:- comply with any applicable laws, listing rules, regulations and/or guidelines
(collectively, the “Purposes”), (ii) warrants that where the member discloses
the personal data of the member’s proxy(ies) and/or representative(s) to
Per Non-Executive the Company (or its agents), the member has obtained the prior consent
Director/Per of such proxy(ies) and/or representative(s) for the collection, use and
Non-Executive Directors’ Non-Executive other Committee disclosure by the Company (or its agents) of the personal data of such
proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the
Fees (per annum) Chairman (RM) Member (RM)
member will indemnify the Company in respect of any penalties, liabilities,
Board of Directors 165,000 65,000 claims, demands, losses and damages as a result of the member’s breach
of warranty.
Audit Committee 40,000 30,000
NRC 30,000 20,000
Safety Review Board 30,000 20,000
Risk Management
Committee 30,000 20,000

Glossary
AirAsia X “The Company” or “AirAsia X”.
Aircraft at end of period Number of aircraft owned or on lease arrangements of over one month’s
duration at the end of the period.
Aircraft utilisation Average number of block hours per day per aircraft operated.
Available Seat Kilometres (ASK) Total seats flown multiplied by distance flown.
Revenue Passenger Kilometres (RPK) Total passengers flown multiplied by distance flown.
Load Factor The number of Revenue Passenger Kilometres (RPKs) expressed as a

percentage of ASKs.
Average Base Fare Passenger seat sales, surcharges and fees divided by number of passengers.
Block hours Hours of service for aircraft, measured from the time that the aircraft leaves
the terminal at the departure airport to the time that it arrives at the terminal
at the destination airport.
Capacity The number of seats flown.
Cost per ASK (CASK) Revenue less operating profit divided by available seat kilometres.
Cost per ASK, excluding fuel Revenue less operating profit and aircraft fuel expenses, divided by available
(CASK ex fuel) seat kilometres.
Passengers carried Number of earned seats flown. Earned seats comprises seats sold to
passengers (including no-shows), seats provided for promotional purposes
and seats provided to staff for business travel.
Revenue per ASK (RASK) Revenue divided by available seat kilometres.
Stage A one-way revenue flight.

AIRASIA X BERHAD
(Company No.: 734161-K)
Incorporated in Malaysia
Form of Proxy
I/We NRIC No./Passport No./Co. No.:
(FULL NAME AS PER NRIC/CERTIFICATE OF INCORPORATION IN BLOCK LETTERS) (COMPULSORY)
of
(FULL ADDRESS)
telephone no. , email address being a member of the
Company hereby appoint

(FULL NAME IN BLOCK LETTERS)
NRIC No./Passport No.: of

(COMPULSORY) (FULL ADDRESS)
telephone no. , email address
or failing him/her NRIC No./Passport No.:

(FULL NAME IN BLOCK LETTERS) (COMPULSORY)
of
(FULL ADDRESS)
telephone no. , email address
*or failing him/her, the Chairman of the Meeting as my/our proxy(ies) to vote in my/our name and on my/our behalf at the
Thirteenth Annual General Meeting of the Company to be held at c/o CAE Kuala Lumpur Sdn. Bhd., Lot PT25B, Jalan KLIA S5,
Southern Support Zone, Kuala Lumpur International Airport, 64000 Sepang, Selangor Darul Ehsan, Malaysia on Wednesday, 26
June 2019 at 10.00 a.m. and at any adjournment of such meeting and to vote as indicated below:
AGENDA
To receive the Audited Financial Statements together with the Reports of the Directors and Auditors
No. 1
thereon for the financial year ended 31 December 2018
Resolutions Description For Against
Ordinary Business
Ordinary To approve the Non-Executive Directors’ Remuneration for the period from 27 June
Resolution 1 2019 until the next Annual General Meeting of the Company to be held in the year 2020
Ordinary Re-election of Tan Sri Rafidah Aziz as a Director of the Company, who retires by
Resolution 2 rotation pursuant to Rule 119 of the Company’s Constitution
Ordinary Re-election of Tan Sri Anthony Francis Fernandes as a Director of the Company, who
Resolution 3 retires by rotation pursuant to Rule 119 of the Company’s Constitution
Ordinary Re-appointment of Messrs Ernst & Young as Auditors of the Company and to authorise
Resolution 4 the Directors to determine their remuneration
Special Business
Ordinary
Authority to allot shares pursuant to Sections 75 and 76 of the Companies Act, 2016
Resolution 5
Ordinary Proposed renewal of existing shareholders’ mandate and new shareholders’ mandate
Resolution 6 for Recurrent Related Party Transactions of a revenue or trading nature
(Please indicate with an “X” in the spaces provided how you wish your votes to be cast. If you do not do so, the proxy will vote or abstain from voting as he thinks fit)
* Delete the words “or failing him/her, the Chairman of the Meeting” if not applicable.
No. of shares held:
CDS Account No.:
The proportion of my/our No. of Shares Percentage

holding to be represented
by my/our proxies are as First Proxy
follows: Second Proxy
Date: Signature(s)/Common Seal of Member(s)

Notes to Form of Proxy
a. Pursuant to the Securities Industry (Central Depositories) (Foreign Ownership) g. The Proxy Form or other instruments of appointment shall not be treated as
Regulations 1996 and Rule 41(a) of the Company’s Constitution, only those Foreigners valid unless deposited at the Registered Office of the Company at Unit 30-01,
(as defined in the Constitution) who hold shares up to the current prescribed foreign Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan
ownership limit of 45.0% of the total number of issued shares of the Company, on a Kerinchi, 59200 Kuala Lumpur, Wilayah Persekutuan, Malaysia not less than forty-
first-in-time basis based on the Record of Depositors to be used for the forthcoming eight (48) hours before the time set for holding the meeting. Faxed copies of the
Annual General Meeting (“AGM”), shall be entitled to vote. A proxy appointed by a duly executed form of proxy are not acceptable.
Foreigner not entitled to vote, will similarly not be entitled to vote. Consequently, all such h. Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa
disenfranchised voting rights shall be automatically vested in the Chairman of the AGM. Malaysia Securities Berhad, all resolutions set out in this Notice will be put to vote by
b. A member must be registered in the Record of Depositors at 5.00 p.m. on 19 June way of poll.
2019 (“General Meeting Record of Depositors”) in order to attend and vote at the
AGM. A depositor shall not be regarded as a Member entitled to attend the AGM and Personal data privacy notice:
to speak and vote thereat unless his name appears in the General Meeting Record By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend,
of Depositors. Any changes in the entries on the Record of Depositors after the speak and vote at the Annual General Meeting and/or any adjournment thereof, a member
abovementioned date and time shall be disregarded in determining the rights of any of the Company (i) consents to the collection, use and disclosure of the member’s
person to attend and vote at the AGM. personal data by the Company (or its agents) for the purpose of the processing and
c. A member entitled to attend and vote is entitled to appoint not more than two (2) administration by the Company (or its agents) of proxies and representatives appointed
proxies (or in the case of a corporation, to appoint representative(s) in accordance for the Annual General Meeting (including any adjournment thereof) and the preparation
with Section 333 of the Companies Act, 2016), to attend and vote in his stead. There and compilation of the attendance lists, minutes and other documents relating to the
shall be no restriction as to the qualification of the proxy(ies). Annual General Meeting (including any adjournment thereof), and in order for the
d. The Proxy Form in the case of an individual shall be signed by the appointor or his Company (or its agents) to comply with any applicable laws, listing rules, regulations and/
attorney, and in the case of a corporation, either under its common seal or under the or guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses
hand of an officer or attorney duly authorised. the personal data of the member’s proxy(ies) and/or representative(s) to the Company
e. Where a member appoints two (2) proxies, the appointments shall be invalid unless (or its agents), the member has obtained the prior consent of such proxy(ies) and/or
he specifies the proportion of his shareholdings to be represented by each proxy. representative(s) for the collection, use and disclosure by the Company (or its agents) of
f. Where a Member of the Company is an exempt authorised nominee which holds the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii)
ordinary shares in the Company for multiple beneficial owners in one securities account agrees that the member will indemnify the Company in respect of any penalties, liabilities,
(“omnibus account”), there is no limit to the number of proxies which the exempt claims, demands, losses and damages as a result of the member’s breach of warranty.
authorised nominee may appoint in respect of each omnibus account it holds.
Fold here
STAMP
COMPANY SECRETARIES
AirAsia X Berhad (Company No. 734161-K)
Unit 30-01, Level 30
Tower A, Vertical Business Suite
Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Wilayah Persekutuan
Malaysia
Fold here
InterRep
InterRep Corporation Limited
- Worldwide Charter
- Aircraft Leasing
- Airline Representation
- Livestock
- Outsize Cargo Handling
- Ground Handling Supervision
- Flight Management
- Med/Evacuate Flight
Airport Oﬃce
Room 405, 4 Floor, Free Zone Operation Bldg., (BFZ),
Suvarnabhumi Airport, 999 Moo 7, Racha Thewa,
Bang Phi, Samutprakarn 10540 , Thailand.
Tel : (66) 0-2134-7223 (operation)
Tel : (66) 0-2134-7224 to 26 )Sales & Reservation)
Fax : (66) 0-2134-7727 SITA : BKKIRXH
E-mail : bkksm@interrepcorp.com
www.airasiax.com
AirAsia X Berhad (734161-K)

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The Sixth Issue / Annual Report 2018

NOW EVERYONE CAN FLY XTRA LONG...

AirAsia X Berhad (734161-K)

3 Vision 85 Group Quarterly Financial FINANCIAL STATEMENTS

17 About Us 92 AirAsia X Thailand: 154 Statements of Financial Position

Annual Report 2018 1

2 AirAsia X Berhad (734161-K)

Annual Report 2018 3

To be the best company to work for

CREATE A GLOBALLY RECOGNISED

To attain the lowest cost

Maintain the highest quality

4 AirAsia X Berhad (734161-K)

6 AirAsia X Berhad (734161-K)

Annual Report 2018 7

10 AirAsia X Berhad (734161-K)

AIRASIA X MARKET SHARE TO DESTINATIONS WE OPERATE INTO

60% 55% 68% 44%

AirAsia X Thailand = 6 AirAsia X Thailand = 3 77 AirAsia X Thailand

AirAsia X Indonesia = 1 AirAsia X Indonesia = 1 2 AirAsia X Indonesia

Social Media subscribers as at 31 Mar 2019

12,027,088 26,600,000 299,753 3,530 20,227

7,946,904 1,374,710 120,597 8,005 24,535

12 AirAsia X Berhad (734161-K)

Net Loss: Total Assets: AirAsia X Malaysia

AirAsia X Malaysia AirAsia X Thailand AirAsia X Indonesia

XANADU EXPRESS WING RED PHOENIX

AirAsia X Malaysia = 2,427

AirAsia X Thailand = 89%

Annual Report 2018 13

16 AirAsia X Berhad (734161-K)

Annual Report 2018 17

18 AirAsia X Berhad (734161-K)

AUSTRALIA CHINA JAPAN SOUTH KOREA

INDIA SAUDI ARABIA UNITED STATES INDONESIA

AIRASIA X THAILAND NETWORK

Annual Report 2018 19

From servicing rural areas

AirAsia X Group &

via Malaysia (as at 12 March 2019)

20 AirAsia X Berhad (734161-K)

*AK refers to AirAsia Malaysia and

Annual Report 2018 21

structure As at 31 March 2019

THAI AIRASIA X PT INDONESIA

AAX MAURITIUS FLY X LIMITED AIRASIA X SERVICES AAX AVIATION

AAX LEASING AAX LEASING AAX LEASING AAX LEASING

AAX LEASING AAX LEASING

24 AirAsia X Berhad (734161-K)

AUDIT COMMITTEE AUDITORS SHARE REGISTRAR

Annual Report 2018 25

Modern. We make it fly.

10 July 2019 - 9 July 2020

• Category B: Min. 100,000 shares and above

HOW TO CHECK ELIGIBILITY & REDEEM YOUR TICKET

Email us at aax_shareholder@airasia.com or contact us at +603 8660 0007

Full Name as per your National Registration Identity Card (NRIC):

TERMS AND CONDITIONS

Annual Report 2018 27

*AK refers to AirAsia Malaysia and