Tony Fernandes

Tony Fernandes, the 33th Malaysia’s richest in the year 2015 with net worth $530 million according to Forbes, is the founder of Tune Air Sdn. Bhd. He was born in Kuala Lumpur on 30 April 1964 to Indian parents. He was educated at The Alice Smith School in Kuala Lumpur, Malaysia. After that, he studied at Epsom College in England at the age of 12. He matriculated to the London School of Economics and graduated with a degree in accounting.

Tony Fernandes is a visionary person and has a dream of starting a budget no-frills airline. This makes him become a millionaire nowadays. Actually as we seen on his biography, he was admitted as an Associated Member of the Association of Chartered Certified Accountants and after that become a Fellow Member. He is also formerly a Warner Music executive in Malaysia. He would have ended up as an accountant or continue a career in the music industry, but he did not, because of his vision. He started to pursue his dream when Time Warner Inc. announced its merger with America Online Inc. Now, he is a successful CEO of AirAsia with the tagline "Now everyone can fly".

Besides, Tony Fernandes is a classical risk taker. Why do I say? He moved into the uncertain world of airline industry right after the September 11 terror attacks. In October 2011, after meet with the fourth Prime Minister, Tun Dr. Mahathir Mohamad, he decided to buy an existing airline which is Air Asia. At that time, AirAsia is a subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom which is heavily indebted. However, he made a decision to buy the airline that comprising two Boeing 737-300 jet aircraft, 200 employees and US$11 million in debt for RM1. He mortgaged his home and used his savings for his risky decision. One year after his takeover, AirAsia had broken even and cleared all its debts. If he fails to clear the debt of AirAsia at that time, he may face bankrupt and he loses everything. If he not courage enough to take over all the debt, he may not appear in the Forbes. Because of his risk taker characteristic make him success today.

Tony Fernandes is a good observer. The September 11 attack had affected the entire airline industry, there are many airline companies facing bankruptcy and large-scale layoffs. This cause the aircraft leasing costs fell 40% and there are much-experienced staff were readily available because of the layoffs. He observes this and takes this opportunity to move into the airline industry. Furthermore, he observes that Malaysian travelers would embrace a cut-rate air service that would save them time and money. Therefore, he came out a tagline "Now everyone can fly" and introduced a budget no-frills airline. This observant characteristic makes him can take the opportunities at the perfect timing.

Tony Fernandes is a team oriented person. The team in is here mean his employee team. He believes that employees are the vital human resources that drive the core of revenues and profits. For him, employees come first before his customers. This is because he knows that in having a happy and warm workforce, his staffs will look after his customers anyway. This characteristic make the working environment in AirAsia is harmony, and the employees are willing to work as best as they can. When we search on Google, we can saw a lot of images that his employees taking the photo with him. Such nice and friendly CEO make the employees feeling close with him. He likes to work in a team, and the employees are this team member, so he need to make sure that everyone is working and cooperate in a peaceful situation. He is not the type of CEO which only sitting in the office and watching the CCTV, but he will walk around the company, chat with his employees, and will help them when they are busy. This action made AirAsia having a high standard of customer services and become the customers’ first choices because of his team oriented characteristic.

“He wanted AirAsia to reflect his own unstuffy, open and cheerful personality. He is rarely seen without his baseball cap, open-neck shirt, and jeans, and he is proud that the firm's lack of hierarchy (very unusual in Asia) means anyone can rise to do anyone else's job. AirAsia employs pilots who started out as baggage handlers and stewards; for his part, Mr. Fernandes also practices what he preaches. Every month he spends a day as a baggage-handler; every two months, a day as cabin crew; every three months, a day as a check-in clerk. He has even established a “culture department” to “pass the message and hold parties”.” (Sorces from http://www.economist.com/node/13325379) According to an article from The Economist, it is shown that Tony Fernandes is an open culture person. These characteristics make the working environment in AirAsia warm and comfortable. Besides, this will encourage employees to work hard and contribute to the company because there are opportunities for them to move higher and higher.

As a conclusion, a successful entrepreneur should have a characteristic of a risk taker. In real life, we have a lot of ideas, dream and vision, but we are not brave enough to take the first step toward it. If Tony Fernandes don’t take the first step to moving himself into the airline industry, I think maybe we will not much about him today because he is not successful.