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Recently, AirAsia CEO Tony Fernandes who is likely one of the best-known names in world aviation revealed in an interview with Bloomberg that he’s prepared to maneuver on and step down.
“Good leadership is to know when to go. Aviation as my journey might be coming to an end,” he acknowledged.
Fernandes, whose title is synonymous with low-cost flights and revolutionising the world of funds airways, shared that he plans to focus extra on areas equivalent to well being, schooling, and personal fairness.
“I like private equity with an active management and helping young people change things. I believe there’s a low-cost model for education and health. These are the two things that discriminate people the most,” he instructed Bloomberg.
With his upcoming resignation, we thought it will be acceptable to have a look again at his rollercoaster of a journey as an entrepreneur with main pursuits in soccer, motor racing, and hospitality.
First flight
Fernandes grew up in Malaysia and the UK, the place he graduated with a level in accounting from the London School of Economics.
After working as a monetary controller at Richard Branson’s Virgin Media Communications Ltd. in London, he moved again to Kuala Lumpur in 1992 to change into the final supervisor of Warner Music Malaysia.
It was reported that he first sensed a possibility in aviation whereas sitting in a London bar watching EasyJet Plc’s Stelios Haji-Ioannou talking on tv about low-cost flying.
Based on that chance, he went on to mortgage his residence in 2001 to ascertain Tune Air Sdn Bhd together with his companions.
He then used that entity to take over AirAsia, which was previously owned by a neighborhood government-owned conglomerate and had money owed amounting to US$11 million, for the equal of RM1 on the time.
After beginning out with simply two planes, AirAsia rebranded as a low-cost service in January 2002, providing flights in Malaysia for as little as US$3, and in some promotional instances even without cost.
With the motto “Now Everyone Can Fly,” Fernandes’ revival of AirAsia helped to supercharge a increase in flying in South-east Asia and at its peak, was the fourth-largest airline in Asia.
Back to earth
With AirAsia discovering a lot success since he acquired it, Fernandes started trying past the airline and in 2007, he started the Tune Hotels chain.
This was in hopes of bringing the low-cost technique to the resort trade with properties throughout Malaysia, and different international locations equivalent to Kenya, the United Kingdom, and Australia.
The concept behind it was that funds fliers wanted a funds place to remain and so the model was billed as “five-star rooms at one-star prices”.
However, it was introduced in 2018 that the Tune Hotels are not managed by Tune Group and are at the moment beneath the administration of Ormond Group.
The quick life
Another considered one of Fernandes’ most notable ventures embrace his entry into Formula 1.
In 2009, Fernandes’ Tune Group purchased Team Lotus, setting off a authorized combat over naming rights with a separate group known as Lotus Cars, earlier than he purchased Caterham Cars and renamed his group after the sports activities automotive producer.
Due to 2 seasons with no factors within the Championship and its drivers ending no larger than eleventh place, with the group on the backside of the F1 constructors’ championship, Lotus bought its entry.
Fernandes vented his frustration earlier than the beginning of the season, saying this was the ultimate probability for the group to interrupt by way of in F1 and that there was a restrict to his persistence, motivation, and funding.
It was reported that he had change into annoyed by F1 and the price burden on group house owners and had even posted on his Twitter account saying, “F1 hasn’t worked”.
But Caterham, Fernandes’ firm, continued in GP2 (now F2) as an alternative till 2014.
While his stint in F1 was short-lived, Fernandes did purchase Caterham Cars in 2011 and held it till 2021, when the pandemic noticed a sale of non-core property.
Life’s a pitch
Following his foray into the F1, Fernandes who’s a lifelong West Ham United F.C. fan lastly achieved his dream of proudly owning a soccer membership in England.
Although he failed to purchase West Ham in 2011, his entry into the soccer league got here within the type of shopping for a 66% stake in London-based Queens Park Rangers (QPR) for round £35 million.
“I’ve always wanted to be involved in football and the appeal of a London club like QPR was too good an opportunity to turn down,” Fernandes mentioned.
“QPR is a raw diamond and hopefully I can contribute to turning it into a diamond. I want the fans to be proud of what we’re doing and be involved as much as we can.”
The membership which had simply attained promotion to the highest league that yr attracted a lot consideration, bringing Fernandes into the highlight.
Fernandes began serving as chairman of the membership in 2011, a place that noticed him make key managerial choices based mostly on the membership’s efficiency. He was additionally usually noticed in London to attend QPR matches.
In 2014, following the membership’s unhealthy run of outcomes, Fernandes mentioned that he would resign if the supporters needed him out, and insisted “a good leader knows when to go”.
He later stepped down in 2018 to give attention to his core companies and hand over management.
Despite the ups and downs he skilled whereas serving as a md of the membership, Fernandes stays loyal to QPR and is usually noticed at matches.
Handing over the reins
In 2022, whereas the airline nonetheless operated beneath the AirAsia model, Fernandes revamped the enterprise and adjusted its title to Capital A Bhd, which operates a brilliant app that can be utilized to e-book tickets, inns, taxis, and meals, in addition to providing fintech companies.
Fernandes has mentioned the rebranding higher displays the group’s standing as an funding holding firm with pursuits in journey and way of life, and helps define that it isn’t “just an airline anymore.”
Capital A expects non-airline operations to account for about 50% of complete group income by 2026, which paves the way in which for Fernandes to go away AirAsia within the fingers of a successor and shift into different areas of enterprise.
What’s assured is that the serial entrepreneur shall be retaining himself busy. “I’ll never not do anything. I’ll always do something.”
In phrases of his successor, Fernandes acknowledged that he would like somebody from inside the firm and Southeast Asia, although he didn’t rule something out.
“I’ve got to talk about succession planning. Exactly when I press the button, I don’t know, but I want to talk about it because I want to attract the right leaders,” he instructed Bloomberg.
“Honestly, I don’t care where they are from. We don’t really talk about race, religion, sex, sexual orientation — I don’t care, as long as you can do the job,” he defined.
Having steered AirAsia by way of the final 21 years full of ups and downs, it will likely be fascinating to see what Fernandes finally ends up doing subsequent.
- Read different articles we’ve written about Malaysian entrepreneurs right here.
Featured Image Credit: Tony Fernandes/Instagram & QPR/Flickr & Tune Hotels/Flickr & Steven Tee/Flickr
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