Tony Fernandes, the founder of AirAsia, is stepping away from the aviation industry to focus on other areas such as health, education, and private equity. Fernandes, who is 58 years old, has been widely credited with revolutionizing budget air travel in Asia. Despite the challenges of the pandemic, he has overseen AirAsia’s growth into an airline group operating in Malaysia, Indonesia, Thailand, and the Philippines, with plans for a Cambodia launch.
Fernandes has always been known for his good leadership skills and recently mentioned in an interview in Singapore that it is time for him to step back and allow new leaders to take over. He has not yet revealed the date he plans to step down from AirAsia, but he is already talking about succession planning.
Fernandes bought AirAsia from a government-owned conglomerate in 2001 for a solitary Malaysian ringgit and rebranded it as a low-cost, no-frills carrier the following year. The airline quickly became popular in Malaysia, offering flights for as little as $3. AirAsia expanded its operations to international destinations and soon established regional carriers like AirAsia Thailand. With the motto “Now Everyone Can Fly,” AirAsia’s red and white planes became a popular choice for getting to places such as Bangkok, Singapore, Jakarta, and Phnom Penh.
According to Shukor Yusof, founder of aviation consultancy Endau Analytics, Fernandes was the first to exploit the market for discount flying in Asia. He added that Fernandes’ contribution to making low-cost carriers a way to fly in this region is huge. Tim Bacchus, an analyst with Bloomberg Intelligence, described Fernandes as a true pioneer of LCCs (low-cost carriers) in Asia, who had the vision to bring the model to this part of the world, making air travel more affordable to many.
Fernandes has always been a high-profile figure with a range of interests. He co-owns a Formula 1 team and a London-based football club and hosted an Asian version of the hit TV show The Apprentice. Fernandes’ impact on AirAsia has been to demonstrate the importance of branding, as well as the key element of being the first mover.
Now Fernandes is ready to channel some of his experience with AirAsia elsewhere. He believes there is a low-cost model for education and health, two areas that discriminate against people the most. He is planning to invest in private equity with active management, to help young people change things.
Fernandes has not revealed who will take over at AirAsia, but he has expressed a preference for someone from within the company and Southeast Asia, at the heart of the airline’s operations. AirAsia’s growth over the years can be attributed to Fernandes’ vision, leadership, and willingness to take risks. His departure will undoubtedly mark the end of an era for the company, but his legacy will remain.
