Air Asia - 4

Topics: Airline, AirAsia, Low-cost carrier Pages: 6 (2462 words) Published: December 17, 2012
Task 1

We would like to write up about Tan Sri Anthony Francis Fernandes also known as Tony Fernandes which he was born in 30th of April in 1964 in Kuala Lumpur. He had graduated in accountancy from the London School of Economics in 1987 and started working as Financial Controller at Virgin Communications London for two years, Senior Financial Analyst at Warner Music International London for three years, and returns to Malaysia and became the youngest Managing Director of Warner Director at Warner Music, as Regional Managing Director, ASEAN from 1996-1999 and Vice President, ASEAN until 2001 at Warner Music South East Asia. When Time Warner Inc. merged with America Online Inc., he quitted his job and starts his journey to fulfill his childhood dream. This idea is generated when he was studying in England and wanted to go home during term break but was rejected by his father because the flights tickets that time are expensive. Later, he started a company under the name of Tune Air Sdn Bhd to take over Air Asia, Malaysia’s second national carrier with the tagline “now everyone can fly”.

We like the idea of his that everyone can fly because not much people can afford to go overseas when the flight ticket are so expensive, especially it happens when only one company dominate the market. He was awarded a lot of honour such as Commander of the Order of the British Empire (CBE) honour, Forbes Asia Businessman 2010, Officer of the Legion d’ Honneur and so on as recognition to his contributions to the community in each country. We think that Tony Fernandes possessed good leadership because he is able to react to challenges and does not give up easily. From the material we got in the internet, it was a big challenge for him to start up because situation at that time was terrible and was widely assumed that the low-cost model will fail. However, Tony Fernandes predicted that Asia would face economy downturn and he could take this opportunity. The biggest challenge in his pathway to succeed in turning Air Asia from a fledging government-link commercial airline to a highly successful public-listed international company is the proposing of the idea of open skies agreements with Thailand, Indonesia and Singapore in 2003.

He tried to reduce the cost, waste and unnecessary expenses to enable his company to promote more low-cost flights for everyone, with the tagline “now everyone can fly”, which we think it is not easy for any company. He keeps the costs low by utilizing online service to sell tickets, not offering meals for short distance flights, shorten the time between landing and takeoff to have maximum flights per day and last but not least increasing the lifespan of the parts of airplane by good maintenance and pilots flying techniques (i.e. tires that can last for 180 landings compare to 70 landings previously). As a leader in a company, he is open-minded and ready to listen to employee’s opinion because staffs are nearer and able to discover the problems easier. He said: “My staffs are my greatest asset. I know every one of them by name and we all share the same passion. I pay them well and we are transparent.”

The personality on Tony Fernandes that we admire is ambitious. We have the similar situation that people thought that our dreams are unrealistic but he dares to realize his dreams compare to people which only dare to dream of other dreams. He dreamt to own an airport when he was young and everyone thinks that it is stupid and unrealistic. He decided to pursue his dream when he is in 36 years old when he saw an advertisement of Easy Jet on Television. His motto is “believe the unbelievable, dream the impossible and never take no for an answer”. With this believe, he bought Air Asia by paying RM1 each for 51.68 million shares and the assumption of fifty percents of the net liabilities of Air Asia. In other words, Air Asia is indebt before he bought it and he had spent only one year to clear all the debt and had led...
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