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.
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. The Company maintains a policy of zero tolerance for any violations of human rights, including the use of child labour and forced labour.
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
Number of Local Suppliers
In 2025, the Company’s procurement volume increased compared to 2024, driven by a higher frequency of flights than the previous year. Total expenditure rose by Baht 1,436 million from the Baht 45,283 million recorded last year. Furthermore, the proportion of spending on local suppliers accounted for 51.3% of the total supplier base.
Number of domestic and international critical suppliers
Number of critical suppliers that passed ESG selection and evaluation
Note: Critical suppliers are defined based on the level of spending and their strategic importance to Thai AirAsia.
Supplier Performance Evaluation
Thai AirAsia's supplier evaluation process incorporates sustainability 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
Empowering Local Suppliers through High Quality Thai Agricultural Products
The Company is committed to strengthening supply chain sustainability by supporting Thai farmers. Four distinctive economic fruits with strong local identity have been selected and developed into premium products, namely fresh longan, dried longan, pineapple, and mangosteen. This collaboration project will run from June 2025 to June 2026.
Our Strategy
Direct Sourcing: Procuring directly from local suppliers to distribute income to communities while preserving the freshness of raw materials.
Quality and Safety: Enhancing production standards to align with international criteria, consistent with AirAsia’s inflight standards, with emphasis on microbiological safety and chemical residue control.
Value Added: Applying shelf life extension innovations to increase the value of Thai fruits and reduce food waste resulting from oversupply in the market.
Collaboration with the Department of International Trade Promotion DIT and business partners further reinforces our commitment to bringing high quality Thai products to global consumers in a sustainable manner.
Raw Material Volumes and Sourcing Locations from Thai Farmers
| Source | Volume (Kilograms) | Type of Fruit |
|---|---|---|
| Lamphun Province | 6,519 | Fresh longan |
| Chiang Mai Province | 5,000 | Dried longan |
| Surat Thani Province | 12,000 | Mangosteen |
| Chiang Rai Province | 9,200 | Pineapple |
Engineering and Maintenance Suppliers
Thai AirAsia has a total 106 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
Medium Risk Food Item Supplier
Low Risk Food Item Supplier
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.
| Overview of Food Suppliers to Thai AirAsia | 2023 | 2024 | 2025 |
|---|---|---|---|
| Number of food suppliers to Thai AirAsia | 37 | 44 | 37 |
| Number of food suppliers accredited by evaluation for supply to Thai AirAsia | 37 | 38 | 37 |
| Number of suppliers with Go Green potential and are incorporating ESG | 1 | 3 | 6 |
| Number of suppliers with THSI (Thailand Sustainability Investment) accreditation | 3 | 4 | 3 |
For more details on our Supplier Code of Conduct, visit https://www.capitala.com/misc/CAPITAL_A_SUPPLIER_CODE_OF_CONDUCT_POLICY.pdf