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Tag: Tony Fernandes

  • Rehiring everyone laid off is my priority, says AirAsia boss

    Rehiring everyone laid off is my priority, says AirAsia boss

    One of the first things Tony Fernandes wants to do after the company is back in business is to rehire every staff he had to let go during the Covid-19 crisis, even as he remains confident the airline is set to come out much stronger.

    The AirAsia Group’s CEO said having survived the last 15 months without raising capital unlike many foreign airlines was a testament to the company’s strength, and said the injection of about RM2.5 billion from various sources is imminent.

    “We made Malaysia globally recognized, we have changed travel after what I came up with within the shower, ‘Now everyone can fly’, has become a reality. So we got to win and make sure we don’t fail. Nothing is cast in stone but we are looking good,” he told BFM in an interview in its Breakfast Grille segment yesterday.

    In this context, he said, his No. 1 priority is to rehire everyone that the company has had to let go.

    “They did nothing wrong. They are great people and we are an amazing company because of our people.

    “I have a responsibility to regrow, rehire and reskill. We are doing all those things right now. The fact that we are still alive after 15 months is a testament that we have very good staff at AirAsia.”

    He was responding to a question from his host who asked if with 90% of its 200 planes grounded and with a cash balance of about RM500 million, how long the airline could survive.

    Fernandes said with vaccination being rolled out rapidly in many parts of the world and flying beginning to return to normal slowly especially in the US, he expects things to pick up soon, adding that Airbus is manufacturing more aircraft with its orders increasing.

    “And now we have new capital coming in. We got some good investors and we will be announcing them soon. I have been very consistent in saying that we will be raising about RM2.5 billion.

    “Our Thai counterparts have already raised (additional capital), while we are in the process of doing it in the Philippines and Indonesia,” he said, adding that the papers have been submitted to the regulators and announcements are expected to be made next month.

    Fernandes said some airlines had gone to raise capital at the beginning of the pandemic and had spent it all, and were forced to raise capital again.

    “We have been very frugal on how we have managed our funds. We have been spending all this time restructuring our balance sheets with our creditors. Most important thing is our creditors have been massive supporters of our business.”

    He said AirAsia will survive as there is an end in sight with the company talking to officials throughout Asean, adding that the opening of Phuket for tourists next month and the massive vaccination were signs of better times.

    He said AirAsia Group is no more just an airline with 17 digital ventures that had been set up recently.

    “We are now a holding company for digital and aviation assets. You will see the clarity of what we built very soon. We are going to be profitable here in 12 to 24 months.

    “Are we going to be the biggest in revenue? No. I am not here to lose money, but I am here to make a margin. We will grow consistently and profitability, we will be the most profitable digital company in Southeast Asia,” he said.

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  • Tony Fernandes says AirAsia ‘can survive’ just on domestic traffic

    Tony Fernandes says AirAsia ‘can survive’ just on domestic traffic

    AirAsia Group Bhd group CEO Tan Sri Tony Fernandes said the budget airline “can survive” just on domestic traffic, which is about 50% of the group’s business.

    “That is very different from Singapore Air (Singapore Airlines) or JAL (Japan Airlines Co Ltd) or ANA (All Nippon Airways Co Ltd),” Fernandes was quoted as saying.

    At the same time, Covid-19-related disruptions can actually make doing business easier, quoting Fernandes.

    It was reported that it took Fernandes seven years to get the Kuala Lumpur-Singapore route for AirAsia Group.

    “(But) it took me seven weeks to open AirAsia food in Singapore,” Fernandes said.

    For all the pain due to the Covid-19 pandemic, it was reported that Fernandes concluded this a “once-in-a-lifetime chance where you can really pivot”.

    It was reported that AirAsia Group under Fernandes’ leadership is pivoting into fintech and payments in a big way.

    It was reported that the group is working on opening a new neobank in Malaysia and Singapore, by tapping into the region’s biggest loyalty program

    “This fintech footprint is expanding to Singapore and soon to Indonesia, the Philippines, and Thailand.

    “AirAsia’s logistics arm has also rolled out a digital network to modernize air cargo using distributed ledger blockchain technology, called Freightchain.

    Logistics, it turns out, “is the real jewel in the crown that I never really saw”, Fernandes said.

  • AirAsia founder Tony Fernandes claims governments ’ Covid-19 coordination ‘horrific’

    AirAsia founder Tony Fernandes claims governments ’ Covid-19 coordination ‘horrific’

    “The coordination on Covid-19 is horrific,” AirAsia Group Bhd founder and group chief executive officer Tan Sri Tony Fernandes laments and claims in a direct swipe at world governments’ on how the global pandemic has been managed and its impact on the travel and aviation industries.

    BBC has today quoted Fernandes as saying that in his history of running an aviation business, he has never seen something so poorly coordinated.

    “It’s like nothing I’ve ever heard,” he said. “The United Nations, with the travel industry, should have come up with some standard protocols” earlier in the pandemic, but politics had got in the way, according to him.

    “Governments are petrified of their people, and they’re taking a very, very, very conservative view. They all want to be in control.

    “I just think that everyone’s… scared and just reacting in a very jingoistic and nationalistic way. I think countries are going to say, unless you’re vaccinated they’re not going to let you in without quarantine,” Fernandes said.

    The BBC report, which also quoted International Air Transport Association (IATA) director-general Alexandre de Juniac, said the world’s airlines need another US$70 billion (about RM283.5 billion) to US$80 billion of government support to get through the crisis caused by the coronavirus pandemic.

    de Juniac was quoted as saying the figures were “on top of the US$170 billion already granted”.

    It was reported that June 2021 is when he expects the first significant easing of travel restrictions, as the impact of vaccines begins to be felt.

    “Government travel restrictions and a huge fall in passenger confidence meant global demand for flights fell about 60% last year, according to IATA figures.

    “That means 2020 saw about 1.8 billion passengers fly, instead of the 4.5 billion in 2019. In an industry where profit margins were already thin it means airlines are estimated to have already lost US$118 billion, with worse set to come,” BBC reported.

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  • ED summons AirAsia CEO Tony Fernandes

    ED summons AirAsia CEO Tony Fernandes

    The Enforcement Directorate has summoned AirAsia chief executive officer (CEO) Tony Fernandes on 20 January in an ongoing probe against the airline. Summons have been issued to the entire top brass of the airline, both past and present, under the Prevention of Money Laundering Act (PMLA).

    The action against Fernandes comes more than a year after both the ED and the Central Bureau of Investigation (CBI) launched their respective probes in alleged financial irregularities and criminal misconduct when the airline was lobbying to obtain its license for its Indian operations.

    In May 2018, the ED had filed a case of money laundering against AirAsia officials and others for allegedly trying to manipulate government policies through corrupt means to get international license for its Indian venture — AirAsia India Limited.

    In June 2018, the ED widened its probe into the AirAsia money laundering case after collecting documents from the Ministry of Commerce and Industry related to foreign direct investment (FDI) clearances given to the airline.

    The probe agency had pressed charges under the PMLA to probe the trail of funds that were allegedly used to create illegal assets, following the case registered by the CBI against the airline and Fernandes.

    The CBI had searched offices of AirAsia India and filed a complaint against Fernandes for allegedly lobbying the government for overseas flight permits and violating rules that prevent foreign airlines from controlling Indian operators.

    CBI’s first information report stated that the violations occurred from 2013 to 2016, before the government eased restrictions on Indian airlines starting overseas flights in June 2016.

    The AirAsia spokesperson was not available for comment on the matter.

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  • Tony Fernandes steps down from all posts except Airasia, Airasia X

    Tony Fernandes steps down from all posts except Airasia, Airasia X

    AirAsia Group Bhd chief executive Tan Sri Tony Fernandes said today he is stepping down from all official board positions except AirAsia Group and AirAsia X Berhad to pave the way for new leaders to move up the company’s ranks.

    On Twitter, Fernandes he made the first decision to step down as the first step in stepping back.

    “As the first step of stepping back and moving the next generation of @airasia leaders into the forefront I will be stepping down of all boards except @airasia group and airasia X,” the tweet reads.

    AirAsia X Berhad, operating as AirAsia X, is a long-haul budget airline based in Malaysia and a sister company of AirAsia.

    Fernandes is listed as a non-independent non-executive director on the board of AirAsia X.

    Last month, Fernandes was appointed as the chief executive of airasia.com, the low-cost airline’s travel and lifestyle e-commerce platform.

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  • AirAsia’s Tony Fernandes: ‘Too Many Leaders Stay Too Long’

    AirAsia’s Tony Fernandes: ‘Too Many Leaders Stay Too Long’

    The public nature of aviation means it tends to attract large-scale palace intrigue about executive leadership changes from employees, customers and other stakeholders and observers. With the industry typically having small margins and many uncontrollable events, it is easy to hope the executive change will improve the experience, hence calls for Bob Crandall to return to American Airlines.

    Change can be a sensitive topic, but not to AirAsia co-founder Tony Fernandes. “Retirement is important,” he said at the Rise technology conference in Hong Kong this month. “Too many leaders stay too long. I think leadership needs to be refreshed.”

    His comments were not directed at anyone or prompted by any events, but leadership change discussion can come up often for executives.

    Emirates President Sir Tim Clark has spent most of his professional life at the Dubai giant, including almost 17 years as president. He is routinely asked of his future plans, not only because of his long tenure as president but also because that at 69 years old, he is above the government’s retirement limit of 65. The official retirement age is 60 for non-Emiratis but this can be extended up to 65, the government says.

    Clark is asked so often about retirement that he has talking points with the eloquence he is known for. “Time will knock on the door and this is a younger man’s business,” he said in 2018. That is similar to his 2015 comment that “It’s a younger man’s game.”

    He deflects to the owner – the Dubai government – and told Airline Ratings: “My succession will be determined by the shareholder.” He said, “I believe that the owner will have plenty of scope there.”

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  • AirAsia’s Tony Fernandes quits Facebook, citing social media ‘hate’

    AirAsia’s Tony Fernandes quits Facebook, citing social media ‘hate’

    AirAsia Group chief executive officer Tony Fernandes closed his Facebook account and said he may shut his Twitter page, citing “hate” being transmitted on the networks after the live-streaming of the terror attack on two mosques in New Zealand.

    “The amount of hate that goes on in social media sometimes outweighs the good,” Mr Fernandes said in a Twitter post on Sunday (March 17).

    “But on Twitter, I think the battle for me goes on.”

    Mr Fernandes said his Facebook account had 670,000 followers. He said in a Twitter post on Saturday that while he is “a big fan” of social media, he had to think hard about whether to remain on Facebook after Friday’s mass shooting that claimed 50 lives in New Zealand’s second-largest city of Christchurch.

    Mr Fernandes has about 1.29 million followers on Twitter and has tweeted more than 20,200 times since joining in 2008, commenting often on the performance of his companies and sports teams.

    He is the co-owner of English football club Queens Park Rangers. AirAsia is one of the region’s biggest discount carriers.

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  • AirAsia to freeze launches for next 3 years barring Vietnam

    AirAsia to freeze launches for next 3 years barring Vietnam

    Malaysian discount carrier AirAsia Group won’t open any new airline in the next three years and will focus on current operations after its proposed Vietnam launch, Group CEO Tony Fernandes said Wednesday. “After Vietnam, we will focus on what we have,” Fernandes said in a twitter post. “Focus this year is to make Indonesia and Philippines very profitable.” Fernandes said he is confident of India and Japan operations turning profitable in 2021, noting that the company’s strong franchise in Southeast Asian markets such as Indonesia, Malaysia, Thailand, Philippines and Vietnam will help fuel growth.

    According to September data, AirAsia operated 127 planes flying to over 130 destinations. The Southeast Asia’s largest budget carrier by fleet has also placed orders for 100 Airbus A330neo wide-body jets for long-haul flights. The company most recently signed a pact “reaffirming” its intention to set up a low-cost carrier in Vietnam with its local partner Tran Trong Kien in his capacity as CEO of Thien Minh Travel Joint Stock Company and General Director of Hai Au Aviation Joint Stock Company.

    Analysts doubt certainty of Indonesian and Philippines operations turning profitable this year as intense competition in both the markets amid highly-volatile fuel prices will continue to weigh on AirAsia’s operations. While Indonesia AirAsia could be slightly profitable in 2019 thanks to robust demand, the company’s Philippines unit will likely remain in the red, said Nomura analyst Ahmad Maghfur Usman. Fallout from a recent crash of Lion Air flight could help drive traffic to AirAsia Indonesia, he said. It is possible for AirAsia’s Indian operations to turn in a profit as early as next year although its business in Japan could remain in the red until the end of

    2020, he said. Global airlines have grappled with fickle input costs in 2018 as crude oil swung between a gain of nearly 30% and loss of 23% before ending the year at $66.73 a barrel. Jet fuel price averaged $86.8 per barrel for 2018, according to the International Air Transport Association.

    Every one dollar increase in crude oil prices could potentially lower AirAsia’s profit by as much as 47.5 million ringgit, according to Nomura’s Ahmad’s estimates.

    Fuel cost will largely determine whether Indonesia and Philippines operations would be profitable for AirAsia, said TA Securities research analyst Tan Kam Meng. Among the risks facing AirAsia is a rebound in crude oil prices to $70 a barrel, he flagged. Still, Malaysia remains key for AirAsia, said Tan. “Although profitability of Thailand, Philippines and Indonesia is a concern, it would not change valuation of the company significantly,” Tan said. Shares of AirAsia, which have added 6.94% over the past year, are currently trading 0.34% lower at 2.96 ringgit apiece.

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  • AirAsia boss Tony Fernandes wants to help Malaysian football

    AirAsia boss Tony Fernandes wants to help Malaysian football

    Malaysian businessman and AirAsia’s  chief executive officer Tan Sri Tony Fernandes has expressed interest to work with the Football Association of Malaysia (FAM) after visiting the national body for a meeting on Monday.

    “At the meeting, Tony, through his company AirAsia, expressed his interest to collaborate with FAM in the future for various aspects such as referees, national teams, and youth development programmes,” said FAM secretary-general Datuk Hamidin Amin through a statement.

    “FAM certainly welcomes the support and involvement of a businessman such as Tony in our efforts to jointly rebuild football in Malaysia.”

    The airline company owner has his fingers firmly dipped in sports, also being the major stakeholder of English Championship club Queens Park Rangers.

    Tony’s AirAsia Group also owns PJ Rangers FC, who play in the Malaysian third-tier FAM league.

    The lifelong West Ham United fan is set to have a professional relationship with a soon to be new regime in FAM that are bound for elections in July.

    Hamidin is most likely succeed Tunku Sultan Ismail as president despite surprise contention from politician Tan Sri Annuar Musa and Malaysian National Sports Institute chairman Datuk Seri Abdul Azim.

    Tony’s business sense and passion for the game will certainly work in FAM’s favour if they come up with a successful blueprint in the said areas.

    The business tycoon has previously backed the national ‘Harimau Muda’ team by emblazoning a logo of them across the AirAsia plane.

    Also present at the Monday meeting were national Under-23 coach Datuk Ong Kim Swee and PJ Rangers deputy president Simon Lim.

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  • AirAsia Group CEO launches memoirs

    AirAsia Group CEO launches memoirs

    Airasia Group chief executive officer Tan Sri Tony Fernandes launched his memoirs, Flying High, a look back at his journey from music man to airline man. The book was unveiled at a star-studded affair at Marini’s On 57 in Kuala Lumpur, in the shadow of the Petronas Twin Towers. The launch was attended by AirAsia co-founder and AirAsia Malaysia executive chairman Datuk Kamarudin Meranun, AirAsia Malaysia independent director Dato’ Fam Lee Ee, AirAsia Malaysia chief executive officer Aireen Omar, AirAsia X Malaysia chief executive officer Benyamin Ismail, AirAsia Thailand chief executive officer Tassapon Bijleveld, AirAsia Group chief executive officer for Indonesia Dendy Kurniawan, and AirAsia India chief executive officer Amar Abrol.

    AirAsia Group chief executive officer Tan Sri Tony Fernandes said, “Flying High is a story about the power of dreams.

    When I first started AirAsia with Datuk Kamarudin, everyone thought we were crazy. They said we had no business running an airline and it wouldn’t work. If we had listened to them, we would have given up before we even started and this book wouldn’t exist. “This book is proof that dreams do come true, and I hope it will encourage others to pursue their true passion. Believe the unbelievable, dream the impossible and never take no for an answer. Even if you fail, it doesn’t matter because at least you’ve tried and you can do it again, so trust in your gut feeling.

    Don’t listen to anyone else’s advice and go ahead—write your own incredible story.” Flying High recounts Tan Sri Tony Fernandes’ journey as a young boy growing in Malaysia to a homesick British boarding school student with a tuck box full of dreams, all the way to his time at Warner Music and finally as AirAsia chief—with plenty of stops along memory lane in between. Learn about what drives Tan Sri Tony Fernandes and the moments that shaped him, including a chance encounter with Virgin Group founder, Sir Richard Branson that eventually led to Fernandes’ first job out of university.

    Published as Tan Sri Tony Fernandes returns as the face of the second series of “Apprentice Asia,” the book is an inspiring personal story of an exceptional business leader who created Asia’s first budget airline and democratized air travel in Asia, building AirAsia into a multi-billion-dollar company in the process.

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