Tuesday, November 18, 2008

Tony Fernandes - The Man Who Dares To Dream

Tony Fernandes (extreme right) at a
press conference in Toulouse recently.
(Bernama pix by Mustaza Yusoff)

From Salbiah Said

TOULOUSE (France) Nov 11 (Bernama) -- There he stood with his trademark red baseball cap sharing with his audience from Airbus, his "dream of the impossible" that has driven him to the front seat of the regions largest budget airline that is redefining travel in the Asia Pacific.

From zero experience in running an airline, Datuk Seri Tony Fernandes, group chief executive officer of AirAsia Bhd, can thank his lucky stars for making a dramatic change of direction to realise his vision of making travel affordable to Malaysians.

At the age of 37, Fernandes, who was vice-president for South-East Asia for Warner Music Group from 1992-2001, left the music industry to buy AirAsia, the then bankrupt carrier for a token sum of RM1.00.

"This dream that's happened today is due to your hard work," said Fernandes, as he thanked AirAsia staff, management and his partners and aircraft manufacturer Airbus for believing in his dream, at the official handing over of the first Airbus A330 for its low-cost long-haul affiliate, AirAsia X Sdn Bhd, in Toulouse, France recently.

The Airbus A330, costing US$200 million (US$1=RM3.54), is expected to significantly reduce the airlines fuel consumption and operating costs.

The ceremony, witnessed by Transport Minister Datuk Seri Ong Tee Keat, came just weeks after AirAsia switched the entire Malaysian operations to an all-Airbus A320 fleet.

Fernandes, 44, is often described as Richard Branson of Asian airlines and hailed as Asia's answer to easyJets Stelios. British billionaire Sir Richard Branson is founder of Virgin Group of UK while Sir Stelios Haji-Ionannou is founder of easyJet plc, a budget airliner based at London Luton airport.

AirAsia X, launched in January 2007, is 48 percent-owned by Aero Ventures (a venture of Tony Fernandes and several of his business associates), followed by 16 percent Virgin Group and 16 percent owned by AirAsia. Bahrain-based Manara Consortium and Japan-based Orix Corp have taken a total 20 percent stake in the long-haul low-cost carrier.

"We started with a small dream with AirAsia, two planes, 200,000 passengers a year. Six years later, we had 20 million passengers with more than 80 aircraft. Our eventual dream will be 60 million passengers in 2013 with 175 A320s.

"That dream was only for four hours (short haul). Today, with A330, and hopefully A350, we will be able to bring everyone to our magnificent hub in Kuala Lumpur from Europe, Africa and America. And really, we will make the world a small place," said Fernandes.

Fernandes founded Tune Air Sdn Bhd in 2001, with a vision to make air travel more affordable to Malaysians. With that in mind, Tony and his three partners in the same year bought over AirAsia from its owner DRB-HICOM.

"That same year along with some partners, I formed a partnership to set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00. Subsequently AirAsia was remodelled into a low-cost carrier and by January 2002, our vision to make air travel more affordable for Malaysians and all Asians took flight," Fernandes says in his blog.

Under his leadership, the fledging airline with a RM40 million debt became a blooming, thriving business and has grown into the regions largest budget carrier operating more than 100 routes covering over 60 destinations.

From a two-aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 72, and has to date carried more than 50 million passengers since its first day of operation.

"Today is the start of a dream my partners and I from the music industry had seven years ago, that is to make travel affordable, democratising travel to everyone. Hence, we came out with a tagline: 'Now Everyone Can Fly' (AirAsia). We did for the region. Today, we are in Stage Two 'Now Everyone Can Fly Xtra Long' (AirAsia X)."

AirAsia was established in 1993 by government-linked company DRB-HICOM, and started its operations in 1996, but was not successful. Air Asia was then bought by Fernandes in 2001 and he turned it around financially within a year.

The ceremony in Toulouse marked the first delivery of AirAsia Xs orders. The carrier placed earlier this year an order for 25 Airbus A330 aircraft to be delivered over the next five years. It is expected to receive its second carrier in December which would further lower its operating costs.

AirAsia has since 2005 placed 175 orders for A320s. To-date, 50 have been delivered.

The Airbus A330 is powered by Rolls Royce Trent 700 engines. The cabin has 383 black leather upholstery seats, with optional premium XL seats for extra width and leg room as well as the latest in-flight entertainment system featuring innovative contents and applications provided by Thales of UK.

To Airbus president and chief executive officer Tom Enders who was present at the historic event, Fernandes said: "We made a deal on the phone and sealed it past midnight in Malaysia. I look forward to a long relationship.

"We always say at AirAsia, dream the impossible. Its always good to dream, people will always knock you down, (saying that) I was crazy, can't be done. If you don't dream, some reality wont come true, wont happen. We encourage people to dream. From some dreams, reality will come.

"Today is a phenomenal reality for me. And we say believe the unbelievable. Who would think these guys from the music industry would revolutionise air travel in Asia. Keep on believing. Thanks to Airbus for supporting us in very troubled times," said Fernandes.

Enders, in his speech, described the event as another important milestone in the strong partnership between Airbus and the AirAsia Group.

"It is incredible to believe that it is less than four years since AirAsia placed its first order with Airbus. Since that time, the group has ordered a total of 200 aircraft from Airbus, including 175 A320s for the AirAsia short haul operation and 25 A330s for AirAsia X, making the group one of our largest airline customers," he said.

AirAsia X started its commercial service with its flight from Kuala Lumpur to the Gold Coast, Australia on Nov 2 2007, before adding the Kuala Lumpur-Hangzhou route in February 2008.

Exactly a year later, AirAsia X ushered in a new chapter of low-cost international travel by flying to its second Australian destination, Perth.

The inaugural AirAsia X flight between Kuala Lumpur and Perth touched down on Western Australian soil at 2.40pm on Nov 2 (Sunday), using the airlines brand new wide-bodied Airbus A330. The A330 was freshly delivered from the Airbus facility in Toulouse, France on Oct 31 (Friday).

AirAsia X now serves the Kuala Lumpur-Perth route with six direct return flights per week. The airline plans to upgrade this schedule to a daily service by mid-December. It will also commence services between Kuala Lumpur and Melbourne on Wednesday.

-- BERNAMA