Tony Fernandes CEO Blog

Just finished an AirAsia board meeting and saw the full-page advertisement in The Star taken out by Anas Zubedy of Zubedy (M) Sdn. Bhd.

Couldn't agree more with the general message. I suspect it will resonate with most Malaysians.

I applaud Datuk Nazir Razak and this resonates with a call – let's have more brave leaders. No more hiding behind the government, monopolies and protectionism.

Shortly after I posted my views on innovation I was thrilled to read CIMB Group CEO, Datuk Nazir Razak's bold comments on how the government should show economic leadership in these trying times. Among his suggestions that really stuck with me were the review of the New Economic Policy (NEP), how the government should venture out to acquire companies and brand names abroad and how Malaysia can attract the best talent.

When I think about it, I see Nazir's comments reflect the ideals and philosophy behind Singapore's Temasek Holdings. Although government-owned, they do mean business when it comes to the way they operate. The sort of returns on investment they generate each year bear testament to that (yes, yes, I am aware of the big hit they’ve taken in the current downturn but you know what I mean). But it was the recent decision to appoint Chip Goodyear, an American and former BHP Billiton boss, as the new CEO that demonstrates how serious they are about running Temasek like a real business.

Like all Fortune 500 companies, Temasek casts its net wide and makes sure it lures the best and the brightest. I take my AirAsia cap off to the Singaporeans for this. They may have a reputation for being ultra-straight-laced and total conformists but this is one radical trail-blazing move for all Sovereign Wealth Funds and State-backed companies everywhere to try and emulate.

Now wouldn't it be great if our GLCs took the same tack when hiring for the top posts? We needn't even have to look beyond our borders: Malaysia has a large and deep enough talent pool to supply a multitude of leadership candidates who can help our GLC’s compete on the world stage. I really cannot agree more with Nazir's call for the review and restructuring of the NEP. It is probably the single most important factor that is preventing Malaysia moving from good to great. I realize the important role it has played in narrowing the economic divide between races. But there is empirical evidence to show that there has been little incremental benefit over the past two decades. It's a 39-year-old machine that is broken, running on empty and which desperately needs to be fixed.

And here’s no better time to do it than now. The global economic turmoil presents a golden opportunity to embrace change (apologies to Obama). Think of it this way: The economic pie is already shrinking at home and if we don't fix our fundamental problems of improving our education system, nurturing talent, and rewarding the best minds the pie will shrink even more. We must have the courage to seize this opportunity to truly reform.

These are all the values that we aim to promote in AirAsia. We try our best to make our staff aware that opportunities are always there for them to switch careers or take on more responsibility or become leaders, as long as they have the desire and the passion to work towards their goals. Some of our cabin crew have moved into the marketing divisions and some who've had enough of pencil-pushing in accounts have taken up the challenge to fulfill their life-long dream to be a pilot!

Someday when I am too old and have to step down from my position as CEO, we will have to hunt for a new chief for AirAsia too. If the new boss was Malaysian, that would be a bonus but regardless of his or her race, class, religion or nationality, I have no doubt that we'll be cherry-picking only from amongst best.

The answer is meritocracy. That's what Datuk Nazir is talking about, and what Temasek is practicing when it chose Chip Goodyear. It’s what globally-minded private corporations practice as well in hiring their most senior managers (think Sony, Pepsi, Toyota, Coca-Cola, and Nissan). It’s what the World Bank did when it appointed Justin Yifu Lin from China as its chief economist – one of the most influential positions in the global economic hierarchy.

Let’s make a start down this road in Malaysia. We don’t even need to go outside our borders. We have so many talented and creative Malaysians right here at home. Let’s use them all. We must ensure that these talent remain here and is not lost to those poaching the best. This is a call for Malaysian companies to be more efficient or risk losing out in the bigger picture. This also must be said, that I feel that the government should not hold back free enterprises just to protect the interests of government linked companies (GLCs). The spirit of privitisation in industries and embrace of innovation should be embraced and not frowned upon. This is an age that calls and demands brave leadership or we will find ourselves deteriorating into an economy lagging behind in ASEAN.

When I write about my Labu journey, you will see how this post is so relevant to what we are all facing in Malaysia. When young innovative bright companies are held back back by slow moving inefficient monopolies, what happens is we simply lose great ideas and talent to our competitors the world. Are we content to only play second fiddle and fall behind all the time?

Dear all,

In London, about to meet Manchester United. Thank you for all your wonderful feedback and comments.

There is no doubt that this would be great for AirAsia and as many of you have said, it is worth the money. To be honest, I don’t know what the entire package would amount to, as prices would have come down. But it must be stated that all our branding commitments to have always been about the impactto our bottom line. We would not be the global brand we are today if we hadn’t invested early on.

The question is whether we need to anymore. And that’s what I’ll be examining.

I was just thrilled that we have reached a stage where Manchester United would actually
1) Think that we are a big enough brand to afford them; and
2) That they would want our brand on them

Yes Proton was on Norwich as someone pointed out, but Norwich and Man U are two completely different type of clubs on two totally different levels.

Well let’s see. Remember, we are ruled not by our hearts but by our brains. Well, once in a while our heart leads us the wrong way…hahaha.
Who knows one one day Manchester United may want to sponsor us!!!!!

I don’t think this will happen as we have achieved a lot of what we want already with our brand, but who knows?
Believe the unbelievable , dream the impossible and never take no for an answer.
Will be keeping all of you posted.

Are you ready for this?

Manchester United have just approached me on whether AirAsia would be interested in becoming their shirt sponsor. Yes, you read that right. The world's most famous football club wants to proudly wear shirts bearing the name and logo of a Malaysian-born global brand. Doing this would be a first for a Malaysian company and would truly solidify us as a global brand. This pure acknowledgement of us, AirAsia as a global brand to be reckoned with is simply a moment where you just step back and say, “Wow! We’re actually there right now!”.

From the business front, its simply astonishing as it clearly shows how we have progressed as a brand and that this little Malaysian company has gone so far in a mere 7 years to raised our brand to such high levels.

Heres the million dollar question, or rather the multi-million dollar question: Do I commit to the shirt sponsorship of Manchester United?

What do you think? So, should AirAsia do it? Have your say on my blog, and you may, just may soon be seeing this:

Make some noise in here people.

14 February 2009. Valentine's Day.

Resort in Jimbaran, Bali.

Sun, sea, sand.

Nope, not really happening.

Have been having hours of meeting with 50 or so of senior management in the resort locked up in a windowless room discussing the strategy moving forward. Its been good to just get away with the senior staff and just reflect on the year.

Just stepped out to take a breather and to put up this post up before I get back to grappling with the issues at hand. Will be stepping back in soon to continue to talk shop and how best to be a better team in these trying times ahead. Key themes of our discussion has been on looking after our people and having a direction for their development. There is a need to continue to encourage innovation, and improving communication. These times of bonding keeps us focused on what we need to do in order to grow an ASEAN brand.

Really looking forward to the end of today, to the barbecue on the beach. And great music of course. Todays Valentine's Day as well and I would like to wish all couples a Happy Valentine's Day from Bali. Would like to thank all who have also been showing me real love and have been supporting me and my blog. Have some amazing pics from here and will find time to upload them in my gallery when I get back. Signing off with love.

Its the weekend again and its all about football, football and more football. I'm no Manchester United, Liverpool, Arsenal or recent Chelsea fan. So its weird because although we sponsored Manchester United, I will be rooting for West Ham like always tonight. Got a big game coming up tonight with my team going in for a thriller against one of the best. Yes, I am a proud fan of West Ham United and tonight promises some great action. Have been a supporter since the Hammer's FA cup win in 1975 and have been hooked since then. Some call it a loyal following, to me, its more like a drug and West Ham has been among the most addictive.

Have been riding their highs and lows with them all these years; through their second FA cup victory back in in 1980, the European Cup Winner's Cup finals, 3 relegations and 3 promotions back to the top tier again and with the current new regime under Gianfranco Zola, who I feel is a superb player and a great coach. For us West Ham fans, its been mostly downs, but loyalty can't be bought and I will die a Hammer. All the greats have come from West Ham as the only team to play with style. Upton Park has seen its share of illustrious players from the likes of Trevor Brooking of the past and the current crop of stars such as Joe Cole and the father-son connection of Frank Lampard Sr. and Jr that rose through the ranks. That singular passion is simply going to take us over the top tonight.

There were two great days in the English league and I was there when on two occasions, West Ham grabbed their two FA Cup victories. Each has been sweet memories that will definitely go down in Upton Park lore. Was also at Upton Park when we last topped United 2-1 so the Devils know whats coming up tonight as we add another sweep over the reigning champions tonight in the history books. Theres Old Trafford and then again, theres Upton Park.

We are chasing a place in Europe next season and tonights game promises to be a cracker with the boys labelled the 'underdogs' and thats just the way we like it. Hope you got your tellys tuned and banners ready because I've got my money on West Ham taking the match tonight. Will hear from you guys and gals at the end of the whistle. I'm forever blowing bubbles.

Watch this space next to find out what Dato' Nazir Razak and Temasek has in common.