Corporate Ethics, Sustainability, and Stakeholder Engagement in AirAsia’s Post-Pandemic Strategic Transformation

Abstract

This report critically analyses AirAsia’s post-pandemic sustainability and recovery strategies, focusing on the integration of environmental, social, and technological initiatives that align with global sustainability goals. AirAsia, a leading Malaysian low-cost airline under Capital A Berhad, has undertaken comprehensive efforts to recover from the COVID-19 crisis while promoting long-term sustainable growth. The analysis explores key initiatives such as the airline’s net-zero carbon target by 2050, adoption of fuel-efficient A321neo aircraft, implementation of digital innovations like AI-driven maintenance and facial recognition systems, and community-based programs through the AirAsia Foundation. The study applies stakeholder theory and virtue ethics to evaluate the ethical and social implications of AirAsia’s sustainability journey, particularly in areas of employee welfare, environmental stewardship, and economic fairness. Furthermore, the report highlights the significance of AirAsia’s collaboration with Airbus and the Malaysian government in advancing Sustainable Aviation Fuel (SAF) production and supporting local businesses through digital platforms. Findings reveal that AirAsia’s integration of sustainability and technology has strengthened its operational resilience, stakeholder trust, and alignment with several United Nations Sustainable Development Goals (SDGs 9, 12, and 13). However, challenges remain in deepening employee welfare programs and scaling up green innovations. The report concludes that AirAsia’s sustainability-driven transformation positions it as a regional leader in ethical, efficient, and responsible aviation.