As a digital and lifestyle company, we rely on a number of suppliers to ensure smooth operations. Given the important role our suppliers play, we believe in treating them fairly and equitably. At the same time, we expect our suppliers to maintain the same level of integrity as AirAsia.

Our supplier selection process involves sending out Requests for Quotation or Requests for Proposal to several suppliers and subsequently assessing them on a level playing field based on their response commercially and contractually.

We require suppliers to adhere to our Supplier Code of Conduct (SCOC) as well as our Environmental Policy Statement and Safety Policy Statement. Our SCOC addresses our expectations of the suppliers in terms of the following:

Business Integrity and Conflict of Interest
Labour Practices
Confidentiality and Personal Data Protection
Environmental Health & Safety Management
Social Responsibility
Competitive Pricing & Terms

We expect all suppliers to conduct business responsibly, with integrity, in an honest and transparent way, such as:

1. Be aware and maintain compliance with all applicable laws and regulations in the countries of their operation and in the countries where they provide products and services to AirAsia.
2. Suppliers must take all necessary precautions to protect all confidential information about AirAsia, its affiliates and its partners.
3. Suppliers shall create a work environment in which employees and business partners are respected and valued for their contributions, free from discrimination or any form of abuse.
4. Suppliers shall comply with all applicable wage, working hours, and benefits laws and regulatory requirements.
5. Suppliers shall maintain and promote fundamental human rights including freedom of movement of workers.
6. Suppliers shall proactively manage, through systems and controls, health and safety risks to provide an incident-free environment where occupational injuries and illnesses are prevented.
7. Suppliers shall deliver products and services meeting applicable quality and safety standards.
8. Suppliers shall carry out operations with care for the environment and comply with all applicable environmental laws and regulations.
9. Suppliers shall deliver products and services meeting applicable quality and safety standards.

Selected suppliers are also evaluated annually for their performance on the quality, reliability and cost of goods or services provided as well as the application of the Environmental, Social and Governance principles in their operations, in addition to our annual supplier risk assessment.

In 2020, we updated the SCOC by including our new Anti-Bribery and Anti-Corruption Policy. We also updated our Group Procurement SOP to include our Supplier Performance Evaluation Policy and Contract Policy.

The updated Group Procurement Contract Policy ensures the Group’s legal risks are managed while taking into consideration local policies and regulations.

For full details and the complete AirAsia Sustainability Report 2020, click here.

SUPPLY CHAIN MANAGEMENT