We have come AFAR from becoming the Investigative Journalists blogging our extraordinary investigations to the world about Tony Fernandez and his AirAsia together with his recent failure of secret share swap deal with MAS. He deluded the Malaysia Prime Minister of the advantages in collaborating with Malaysia Airlines where the Prime Minister later discovered the deal was to bail out AirAsia by pirating Malaysia Airlines most profitable entity i.e. MAS MRO and Pilot Training Simulators for AirAsia group to increase AirAsia’s yearly revenue. This was admitted by Tony Fernandez in his recent statement to STAR Publication claiming there is no other hidden agenda but merely trying to make more money. Yes, it is very true Tony Fernandez is trying to make more money and he found that ‘MORE MONEY’ in Malaysia Airlines and so his treasure hunt for Malaysia Airlines funds started and henceforth plotted MAS heist with the help of Dr. Evil Kutty.
Dr. Evil Kutty hence ill-advised the Malaysia Prime Minister to allow the secret share swap deal be approved for AirAsia to prepare its invasion into Malaysia Airlines.
How Tony Fernandez failed miserably in his recent share swap deal between Malaysia Airlines and AirAsia?
The truth is Tony Fernandez did own Malaysia Airlines for only 8 months under the share swap deal until the secret deal was withdrawn by the Malaysia Prime Minister after the Prime Minister discovered Tony Fernandez’s SECRET strategy for bailing out AirAsia poor financial status as reported by GUAMs.
Once again, we’re reprinting this very interesting article from Another Brick in the Wall (ABITW). Please enjoy reading this informative article about Tony Fernandez’s publicity stunts after he failed securing MAS & AirAsia Share Swap deal.
When Tony Fernandez said he is ‘glad’ after Malaysia Airlines deal failed, it was a face saving remark. Of late, he has been talking too much and creating fanfare to save face and detour attention on his problems.
At least he did not say thing like being maligned and vilified in the blogosphere and ask the Board of Directors to affirm he is not a skunk. That is for pampered cry baby Gen Y CEO wannabees (Danny Johnny Fernandez) who claimed himself as an aviation specialist and expert. Tony Fernandez is made of harder stuff.
When he said he is moving to Jakarta, there will be no engineering business for MAS. Now we know how sincere he is to collaborate. [Read in Bigdogdotcom here or The Star here of the interview].
Let Tony Fernandez pass the business to Jakarta. See whether he will get the kind of service he gets with MAS and MAB. If he doesn’t pay up, pray the Indonesian don’t cut his ears off.
He was reported by Reuter here saying, “I’m just trying to make more money. There is no hidden agenda.”
What a greedy pig he is. There should not be any sympathy if he goes around like Van Gogh.
Fell for his fanfare
Tony Fernandez is just being himself.
The stupid thing is why did some fell for his tricks and treachery to sacrifice the national airline. It is really stupid to attempt the CCF deal with a known low life character. How could anyone missed that?
Before looking at the numbers and all, an important step in dealmaking is knowing the personality. Can you trust the person? Do they have any sense of honour?
Even thieves have honour and code.
Malaysiaairlinesfamilies added even PIRATES have pride and dignity. If you failed, surrender your epaulette and retreat from the pirates’ world. However, Tony Fernandez has thicker skin than we thought.
More foolish is the revelation that all the Air Asia people that joined MAS have and will return back to Air Asia.
From Idris Jala to AJ, can’t they see that?
Why would they leave an Airline they are convince is where the growth is to go to a highly debted, losing profitability and lost its premium shine, MAS?
Tony Fernandez have been talking of Jakarta for many years. Indonesian market is the growth of tomorrow.
Yet when in MAS, Danny gave the Bandung route to Tony Fernandez. Is the Board of Directors so sure of his honesty and integrity?
Moving or not to Jakarta
Again, don’t fall for Tony Fernandez’s Jakarta talk.
It is obvious he tries to replicate Malaysian operational success abroad. At the moment, he dare not say he moved his headquarter. He still depend on the Malaysian market and would jump should it be open up soon.
But he is talking big as though he could grow profit by five-fold abroad. Can he get the same preferential treatment and political clout in Malaysia as he gets abroad partnering with former political despots? [Read The Star today here]
So he claimed Air Asia will only establish an AirAsia Asean office. Its role will be similar to the Dublin office of RyanAir as strategic planning office for Europe. Sure, is Ryan Air headquarter in Dublin too?
They made a big fanfare out of the announcement of Air Asia’s new young lady CEO, Aireen Omar for Malaysian Operations.
But it’s too soon to say hurrah for women’s liberation, Kak Ena.
Not from a man who used his stewardess as sex object like Sir Richard Branson used his Virgin ladies. See You Tube above of Air Asia advert.
It is only a fanfare. Just like the move to Jakarta. Read The Edge report below:
AirAsia Malaysia’s HQ not moving to Jakarta, says Fernandes
Written by Surin Murugiah
Wednesday, 13 June 2012 13:32
KUALA LUMPUR (June 13): AIRASIA BHD ’s group chief executive officer Tan Sri Tony Fernandes reiterated that AirAsia Malaysia’s headquarters was not moving to Jakarta.
He said the low cost carrier (LCC) was committed to upholding its “Now Everyone Can Fly” pledge to Malaysians that.
In a statement Wednesday, Fernandes said the establishment of the AirAsia Asean office in Jakarta as the LCC’s regional base was to help to more fully deliver on that pledge to all the people of Asean and beyond.
He said that shifting AirAsia’s emphasis to a regional strategy was not just good business, but also a move that will keep the LCC ahead of the inevitable competition that is heading its way.
“But while others focus largely on trying to gain market share in domestic markets, we seek to expand our footprint throughout the region.
“After all, no single domestic market in Asean, not even Indonesia, can match the potential of a regional Asean market of 600 million people and a combined East Asian market of 2 billion,” he said.
He said AirAsia Asean would serve as the “nerve centre” of the LCC’s regional expansion.
He said it would operate very much like how the Ryanair office in Dublin, Ireland, serves as the strategic planning centre of Europe’s largest LCC.
“AirAsia Asean will also help us to ensure that our voice, our concerns and our appeals are heard much more clearly in the corridors of power within ASEAN,” he said.
Fernandes said that one of the reasons for locating the office in Jakarta was to help AirAsia engage more closely with the Asean Secretariat, which was headquartered in Indonesia’s capital city.
“Locating our regional base in Jakarta is also likely to have the beneficial effect of helping raise the profile and branding of AirAsia Indonesia, which is heading for a listing on the Jakarta Stock Exchange by the end of the year,” he said.
Indons ain’t stupid
Ignore all the cock and bull story of Jakarta as Asean Secretariat for Tony to ready for Open Sky 2015 and the potential of Asean.
There are about 20 LCCs competing in Indonesia. The Indonesians are spoilt with choices and not to be easily bullied as the Malaysian customers by it’s one and only LCC.
Even that is not for long with a law allowing Airline not on time to be sued.
The only way way AirAsia Indonesia can increase passenger load is to stop the long list of hidden costs and surcharges which totals up to the same price as Garuda ticket but without the inconvenience and long wait.
Associate company, PT Indonesia AirAsia was founded in 1999 as Awair and was then 40% owned by former President Abdul Rahman Wahid before he relinquished it.
It became an associate when Air Asia took over 49% in 2004. It changed name to Air Asia Indonesia on December 1, 2005. Air Asia Indonesia has currently a fleet of 17 A320s and by the look, it is struggling to get listed.
Initially, it was planned for fourth quarter 2011. The company had appointed CIMB Securities Indonesia and Credit Suisse Securities Indonesia as joint-lead underwriters for the 20 percent IPO.
Tony Fernandez announced for third and fourth quarter 2012. The Reuters Monday here reported Tony have moved it again to first quarter 2013. He claimed time was slotted for listing of Air Asia-X but he has been on a wait and see. Many scheduled IPO have been shelved.
There is a big headache for Tony Fernandez. Air Asia started operations in 2001 and get listed in 2007.
Only Gus Dur is known. The other Indonesian partner is not but could be powerful too. They may have waited long enough on Tony Fernandez’s promise to list.
On March 23rd here, ABITW wrote of the potential problem of Air Asia and the Air Asia Thai listing delay. That problem look solved. Thanks to Thaksin’s sister, Yingluck being Prime Minister.
Air Asia Thai was listed on May 31st. Read The Sundaily news report here.
According to The Edge report here, Air Asia need to list off both it’s Thai and Indonesian associate in order to bring its gearing to below 1 from 1.4. Still, the transfer of aircraft funding to the associate will only be gradual.
AirAsia placed a then record order with 75 Airbus advanced A320-200 planes worth USD18 billion for delivery 2016. Tony Fernandez boasted of ordering another USD4 billion deal to buy another 50 Airbus A320s. In addition, Tony was reported to have ordered 200 Airbus 320 Neo and the option of another 100 more.
He’s plan to sign five more joint-venture agreements with regional airlines within the next two years. Read Business Times here.
To IPO or not?
Tony is telling the Malaysian media as though the Indonesiaan are sitting still.
No … Government backed, Garuda Indonesia did their IPO in February 2011, although undersubscribed of the RM1 billion target which is still held by underwriters. They control 24% of domestic market and have tie-up with 3% market share LCC, Citilinks.
Indonesia’s leading LCC, Lion Air has a USD21.5 billion deal for 230 Boeings 737 to add to their existing fleet of 92. Their order book is 400 airplanes. Lion Air has 51% market share of Indonesiaan domestic market and ambitous target of 60% market share, which some see as implausible.Lion Air had to announce delay of their USD1 billion IPO flotation plan due to poor market condition and safety ban by EU.Aside from Garuda and Lion, there is also Singapore Tiger Airways’s Mandala and Pacific Royale to contend with.
One can see how edgy he is but he can’t show that in Malaysia. He carries an image of being on the ball and like Ferguson of Manchester United or Branson of Virgin have the upper-hand in the war of words.
Two major IPO for Singapore and Hong Kong has been recalled due to market volatility stemming from the European debt crisis. He can’t play acting on this.
Women CEO distraction
With Tony Fernandez and Kamarudin Meranun leaving for Jakarta, flagbearer Air Asia Malaysia will be under 38 year old Aireen Omar. The announcement of a young woman as CEO seems to distract media from the headache Tony is facing.She joined AirAsia in January 2006 as Director of Corporate Finance and is now Regional Head of Corporate Finance and Treasury.Before that, she studied Economics and Political Science from the London School of Economics (LSE) and holds a Masters in Economics from New York University (NYU).
Started out as an Associate with Deutsche Bank Securities Inc, New York in September 1997 till August 2000.
Returned to join Maybank Investment Bank as Assistant Vice-President from March 2001 to November 2003. In December 2003 she joined Bumiwerks Capital Management as Director until December 2005.
Maybank Investment Bank and Bumiwerk; birds of the same feather flocks together. The link to Tan Sri Nor Mohamad Yakcop and Dato Kalimullah Masyerullah Hassan remains.
More management change in MAS as CFO Rozman Omar is set to leave. So too is Head of Engineering, Azhari Mohd Dahlan. Both are likely to return to Air Asia.
It seems former MAS Datuk Bernard Francis is rejoining as Head of Commercial for Air Asia Indonesia. Make your own conclusion.
All Tony Fernandez need to do is take in Danny.
Now that Tony Fernandez’s cards are opened, he has a game playing with MAHB. Will he continue with it or leave it to Aireen to handle.
With his move to Jakarta and his big plans known, Malaysia Airport can’t afford to blink in the eyeball-to-eyeball head-on between Tan Sri Bashir and Tony Fernandez.
His move to Jakarta is not about getting away from the tense of operations at the headquarter and a relax environment to plan and monitor the competition with 20 other staff.
It’s about making Air Asia Indonesia grab the Indonesian market share. This time they do not have a Khairy and Zaki Zahid. Neither a Tun Abdullah.
Even if they do, the market is the determinant. They can’t yelll unfaoir and at the same time, get all the preferential treatments.
MAB know that with the failure of his Air Asia-X long haul model, tough global economy, rising competition, and made worse by his bad boy image within industry, they can call his bluff.
If only, there is no politicians and Khazanah interference.
But Tony Fernandez knows that Khazanah only extend Bashir’s contract by a year and looks likely, Khazanah is looking for someone to put there.
Tony Fernandez will want to put his man. Hope they are not talking of Danny still.
With respect to another Khazanah company, Malaysia Airlines, they should look at Indonesia too. For that matter, MAS must be able to see beyond the obvious before they go.
Does Khazanah roar have MAS interest at heart? And what is in their heart for Penerbangan Malaysia Berhad?