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Sustainable Supply Chain

Sustainable Supply Chain

Efficient supply chain management is important to the Company’s operation and assessing supply chain risk is integral when evaluating a supplier as to protect the Company against ESG risks.

Sustainable Supply Chain Management

Thai AirAsia’s supplier evaluation policy extends from the selection process to a supplier’s products. Suppliers are expected to operate responsibly towards society and the environment while being required to meet our Supplier Code of Conduct (SCOC).

Supplier Code of Conduct

Thai AirAsia conducts regular reviews of its SCOC and actively encourages understanding and compliance with the Company’s requirements. The Company places great importance to safety regulations, good governance, business ethics, and compliance with laws and regulations. Thai AirAsia’s SCOC references International Labour Organisation (ILO) principles on human rights, transparency and anti-corruption, supplier and stakeholder equality and social responsibility.

Green Procurement

Thai AirAsia makes an effort to procure products and services from domestic and local suppliers to support and elevate the country’s industries as well as to reduce the carbon emissions that would result from international transport.

Domestic Procurement

Amount Spent on Local Suppliers
(Million Baht)
Number of Local Suppliers

The Company carried out more procurements in 2023 than in 2022 due to an increase in flights from the previous year. The Company spent a total 9.529 Billion Baht on procurement of products compared to 8.2 Billion Baht during the prior year.

Total Number of Engineering and Maintenance Suppliers
Number of Engineering and Maintenance Suppliers that meet Standards

Supplier Performance Evaluation

Thai AirAsia's supplier evaluation process incorporates ESG criteria to ensure that suppliers are in line with the Company's business standards.

The Company carries out annual performance evaluations of its suppliers, with indicators based on standards set for each supplier. Evaluations cover:

Product Worthiness
Product Quality
On-time Delivery
After Sales Service and Response
Innovation
Environmental, Health, and Safety (EHS) and Sustainability Performance

Engineering and Maintenance Suppliers

Thai AirAsia has a total 141 suppliers for aircraft parts, equipment and maintenance. All meet Company requirements, which include Aviation Grade standards and European Union Aviation Safety Agency (EASA), Federal Aviation Administration (FAA) or Civil Aviation Authority of Thailand (CAAT) certification.

All parts supplied to the Company must meet manufacturer specifications. Manufacturers who supply Thai AirAsia are audited once a year using a supplier efficiency criteria, which encompasses product accuracy standards, delivery time, price, and more.

Total Number of Engineering and Maintenance Suppliers
Number of Engineering and Maintenance Suppliers that meet Standards

Food Safety

For food safety, the suppliers shall incorporate environmental practices in their policies and have met standard protocols such as Hazard Analysis and Critical Control Points (HACCP) and Good Hygiene Practice (GHP), which set out requirements to reduce waste water and waste from production processes as well as the use of chemicals.

All information provided by the supplier is verified prior to procurement to ensure food presented by Thai AirAsia is of the highest quality and safe for consumption.

Food Supplier Risk Assessment and Categorisation

Thai AirAsia assesses the risks and categorises its suppliers annually to decide on audit frequency. Audits are carried out on suppliers having a high degree of risk.

Food Supplier Risks by Product Type

High Risk Food Item Supplier
Suppliers of food items that require heat treatment and rapid cooling in accordance with the International Flight Services Association (ITSA)/World Food Safety Guidelines (WFSG) standard due to the risk of spoilage during storage e.g. Desserts, Sandwiches
Medium Risk Food Item Supplier
Suppliers of moderate risk food items e.g. Ice Cream, Ready-to-eat meals
Low Risk Food Item Supplier
Suppliers of low risk food items and shelf stable food items e.g. Beverages, Packaged Snacks, Chocolate Bars

Supplier/Caterer Food Safety Evaluation/Audit

For assurance that all food suppliers meet domestic and international legal requirements and the Company’s food safety and quality standards, all suppliers must be audited. Audit types are as follows:

  • 01
    Pre-Audit
    Carried out prior to contract signing and purchasing to verify that the food supplier’s quality control system is in compliance with the Company’s food safety and quality requirements.
  • 02
    Regular Audit
    Accredited and approved suppliers undergo a regular scheduled audit and review once a year.
  • 03
    Urgent Audit
    This type of audit is performed only in the case of a serious complaint over a product or a product is found to be non-compliant with Company requirements during delivery.

Audit Score

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Overview of Food Suppliers to Thai AirAsia 2021 2022 2023
Number of food suppliers to Thai AirAsia 47 47 37
Number of food suppliers accredited by evaluation for supply to Thai AirAsia 28 47 37
Number of suppliers with Go Green potential and are incorporating ESG - - 1
Number of suppliers with THSI (Thailand Sustainability Investment) accreditation - - 3