Tony Fernandes, CEO and Non-Independent Executive Director of Capital A Berhad, the parent group of AirAsia, recently headlined WiT Singapore, a conference he last attended 21 years ago. The event took place at Marina Bay Sands, where Fernandes was greeted with a distinct buzz in the air.
As a true disruptor, Fernandes has consistently demonstrated his ability to command a room, much like the late Lee Kuan Yew, who could walk into a room and seemingly hold everyone’s attention. Fernandes’ sense of oratorical daring has become legendary, and the media, despite his occasional goading, are undoubtedly his people.
The conference set was simple, featuring two armchairs, a side table with a blue flask and a bottle of water, and a giant screen displaying a pink and orange sunset. Between the chairs was a battered Union Jack tuck box, which held sentimental value for Fernandes, who had received it from an old friend from his Epsom College days in the 1970s.
Fernandes’ story is one of daring to dream and living that belief into reality.
Yeoh Siew Hoon, WiT’s founder, asked Fernandes what three new stickers he would put on the box, to which he replied, “Oh well, retirement,” before being reminded that he wasn’t allowed that sticker yet, given the company’s current crisis. Fernandes agreed, saying, “Let’s start with that first.”
AirAsia Crisis Unfolds
Recent headlines had suggested that AirAsia was in urgent need of fresh capital, amidst sizeable liabilities and under-utilization of aircraft. Fernandes had called a press briefing to address these “inaccurate” reports, stating that most of the liabilities quoted were aircraft leases and that no planes had been grounded for non-payment.
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On stage, Fernandes reflected on his 25 years at AirAsia, listing the various crises he had faced, including SARS, a tsunami, and COVID. He noted that today’s environment was just another battle to be faced head-on, with the variable of oil prices being a significant challenge for all carriers.
Fernandes’ motto remains “why waste a crisis,” and he believes that AirAsia will come out of this stronger.
Fernandes attributed his bullishness to the fact that people still want to fly, and that the demand is strong. He noted that the recent task had been about realigning revenue to the new cost structure, which would take a few months, but that they were “kind of there now.” He expected the third-quarter results to tell the story, and that the fourth quarter would be “quite good.”
What sustains Fernandes through the dark days is the strength of the AirAsia brand and the trust people have in it. He also noted that his partners are behind him, thanks to 25 years of transparency and relationship building. Fernandes hopes that all of Capital A’s businesses will contribute to the company’s success, and that he is optimistic about the future.
Fernandes was asked which of Capital A’s other businesses he was counting on, and he replied that he hoped all of them would contribute. He noted that optimism is a discipline that comes from building a 20-day hangar in the middle of a pandemic with loan-shark rates, and that it took a lot of “guts” to do so.
Fernandes’ Daring Ventures
While the rules may not be fair, Fernandes is still well in the fight, and his legend is also in the areas where he dared to do things differently. Fernandes is a character who dares to do it and won’t die wondering.
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As a parting gesture, Siew Hoon asked Fernandes to read from his own book’s final passage, which ended with the mantra: “I may succeed or I may fail. If I fail, I’ll keep going until I succeed because I never give up.” There was a tear in his eye as he read it, and he seemed to recognize that the mantra was exactly what he needed to motivate himself right now.
Fernandes’ goal is always about disruption, and he believes that low-cost carriers have changed the region for consumers, bringing jobs and creating opportunities. He notes that his network is a massive asset, and that he could never retire, as it’s not in his DNA. However, he also thinks that good leadership is knowing when to go, and that too many leaders overstay.
The test will be durability, and Fernandes insists that he doesn’t think he’ll be a decent leader if he leaves and the company collapses. If he leaves, and the next person does a better job, then he’s done a good job. He was prepared to go in 2020, but then COVID came along, and after fixing it, he thought he’d stay for another year or two.
AirAsia’s Brand Expansion
Fernandes’ idea was never just about selling seats; AirAsia is much more than an airline. It creates culture, inclusivity, and brand values. He’s beginning to license the brand, with a “very large hotel group” looking to create hotels under the brand, and mobile and the licensed MOVE brand creating broader customer value.
Asked what he might do after the airline, Fernandes replied that he thinks every human should have good education and good health. He’d love to create an AirAsia version of hospitals and education, so that the common man could have decent services. He’s made a start, building a school in Malaysia, but knows he’d like to branch out in the future, looking at affordable models.
As for the tuck box stickers, Fernandes thinks hospitals, education, and low-cost would be the three new stickers. AirAsia culture, rolled out of the hangar, and into society, is what living a belief into reality must feel like. With that, Fernandes’ sense of fight was restored, and the king had returned.