Tony Fernandes CEO Blog

A lot has been said about 1Malaysia. My views on that are very clear. I hope one day there will be 1Asean.

So I won't dwell on it. What I would like to focus on are the reforms implemented in the commercial sector by Prime Minister Datuk Seri Najib Tun Razak's administration.

The removal of NEP requirements for 27 service sub-sectors represents a great start. I hope the rest of it will also wound down in time. But I hope more importantly, that the entire domestic economy is reformed.

My wish is that Datuk Seri Najib does a Margaret Thatcher. At present, there is too much vested interest, conflict and red tape that kill creativity, discourage innovation and provide little incentive for entrepreneurs to start and grow businesses. Before all of you jump on me and point to AirAsia's success, yes, we have survived and thrived, but AirAsia could be so, so much bigger and successful if we didn't have to deal with all these issues.

What are they?

1) Government-owned firms should be divested by the state. The government should facilitate the operations of businesses, not run them. I'm not saying GLC's should be sold to individuals like in the past but the public should own them. So instead of Khazanah owning 70 percent of several supposedly private entities, let the public own them. These companies should be put in charge and empowered, not led by civil servants. No matter how highly qualified, civil servants tend to have a singular mind-set which is that of regulators. When they are in charge of GLC's, they are likely to be conflicted in dealings with private firms such as AirAsia. Can Khazanah be really objective on issues regarding AirAsia when it owns MAS and Malaysia Airports Holdings Berhad?

2) If GLC's are 70 percent owned by the public and overseen by professional boards of directors, it is much more likely that the senior management, including the CEO will consist of qualified and experienced professionals --- people seasoned in the private sector and who will come into the job knowing that they can't rely on government intervention and protectionism. This can only help nurture the building of stronger and better brands.

3) Monopolies stifle and strangle innovation, creativity and entrepreneurship. They should be broken up. Look at our airports, almost all under the control of MAB. We have 40-odd airports. Have they been effectively developed? Are they contributing as much to the national and local economies as they should? AirAsia has been stubborn and fought all this every inch of the way, but it has taken a toll on us as well. As for the country, how many good businesses have we lost? How many great entrepreneurs have just given up, tied up in knots by the tangles of red tape and the regulator-mentality of GLC's determined to protect their own turf rather than consider the broader national interest?

4) Private industries coupled with efficient marketing-driven GLC's will get us out of this rut. And then we can have firms that can go out there and be the best in Asean and then in Asia.

Good luck to our new prime minister. He has started off well but as the Beatles once said, it's a "long and winding road." He is right to focus on the economy. Attracting foreign investment is great but he would do equally well, if not better, to remove the shackles that prevent local talent from soaring. It is a Malaysian (note Malaysian) who will grow and drive this country. There is so much talent among our people. Liberate it.

I have received many letters both negative and positive in my years at AirAsia but this letter really moved me. It just goes to show how AirAsia has changed lives and how our dream of uniting ASEAN is fast becoming a reality. This wonderful appreciative man does not look at us as a Malaysian airline but instead as an ASEAN product that has made his dreams come true.

I just wish we can do even more for guests like him. Look at his wish list for us! But how do we set about fulfilling these expectations when we can't even seem to be able to get the details sorted out on our new home, the purpose-built Low-Cost Carrier Terminal at KLIA?

Four months have passed and we still have not heard from the Malaysian Airports Holding Berhad. I am despondent because if we had been allowed to go ahead with Labu, we would have done so much already. The country should not slow down private businesses, especially now in these testing economic times. We need low costs --- and we would welcome more efficiency and passion from MAHB so that we can make more dreams like those of the author of this letter come true.

In times when many focus on the negative, it is so wonderful to get this letter. Thank you Muliadi. You have made an old man very very happy.

Letter from guest

Dear Tony Fernandez,

We send our regards by Attaching my photos with my 4 children in royal palace bangkok. But your system can not allow it.

1. It is a great pleasure to have your letter. You are a legend. The world will remember you for the next 100 years. I will keep your letter to my grand-grand sons. Dou you have pen or anything else with your signature that you can send me so i can keep it too? I do not mind if you like to send me your first airplane. That must be very precious now and next 100 years.

2. How can AirAsia the World’s best low cost airlines because of us? If :
- you do not operate airasia and put the promotions everywhere, how can we fly to other country with cheapest price?
- If Tony Fernandez does not stay in the airport to meet the customers, to know what customers need, and have a passion to serve people, knowing people difficulties, how can I bring my wife, 4children, my mother in law, my father and my mother fly to other country?
- God created the world, to make people realize there is God. and we must see it. To praise and worship Him. He use Tony Fernandez to help us fly. By giving you the vision to see the imposible.
- You create the problems, and we love it.

3. By what you have done, indonesia, malaysia, singapore, thailand, laos , kamboja, myanmar, london, australia, india, received more tourists than before. Hotels, restaurant, shops, everything getting more profit. All the people where there is airasia, they love it. We are live! They are happy. Goverments in those country should give you rewards. But they do not do it nor say it. They just clap their hand. Because there is a song said”if you’re happy and you know it... clap your hands!” My mother 65 years, my father 70 years old, my mother in law 74 years, my children, my nephews, my sister in law, they are so happy these days because they know they will go to Kuala Lumpur on July 10, by airasia. Even it is still 3 months from now. For us$ 45/person return ticket. Low cost create happiness. When will you make promotion from Bali to London for Rp. 0,- cost? I do not mind order it 4 months before.

4. If i may suggests:
- Make agreement to airplanes factory, Buy more airplanes. Make it 7500planes in next 5 years. Open the route all over the world. Let People pay for that 7500planes and then fly them. Promote it:”WE buy the planes, you paid for it! Order now, fly next year”. I believe it will help airlines factories, countries in this global crisis.
- We need cheap rooms to stay during transit in Kuala Lumpur. Before we go to other destination. Nevermind if 1 small room have 6 beds. Like in the prison. Special for airasia passangers. As long as it cheaps, we are happy. In that hotel, we need 7 eleven. That’s it. Will you make that happen? Start from KL airport? Let people pay for that. ”WE built the cheap rooms for you, you paid for it! Order now, stay next year”.
Tony, i like you. You are special. I deeply thanks to you.

Best regards,
Muliadi Sumardi