Focus Malaysia:
Fasten your seatbelts: Prof Fernandes to teach biz lift-offs but faces headwinds over UM appt
By Jonathan Liew
After all, the airline magnate is a business juggernaut who transformed AirAsia into one of Asia’s most successful budget airlines. His story of buying AirAsia for RM1 and turning it into a regional aviation powerhouse is the stuff of entrepreneurial legend.
Students will likely gain oceans of inspiration hearing about how AirAsia and its associates soared and disrupted industries.
Yet, one can’t help but wonder if Malaysia’s oldest university (founded in 1905) has glossed over some of the more turbulent episodes in Fernandes’ career.
Sure, he built AirAsia from the ground up but what about the rough landings along the way? Is he really the figure to whom we should be looking for lessons on managing a business or should the university have taken a more critical approach?
A joke making its round since news about Fernandes’ appointment broke was whether his lectures would start on time or often see delays or even cancellations – like his airline is notorious for? Will there be prompt refund for delays or class cancellations?
In a classroom setting, will students be waiting anxiously for his arrival, much like the passengers waiting for their delayed AirAsia flights?
Jokes aside, what can we learn from Fernandes’ handling of customer service during the pandemic?
Business integrity ats stake?
Thousands of passengers complained about unprocessed refunds and the lack of clear communication from the airline during that crisis. If students are hoping to learn about customer satisfaction, perhaps Fernandes can offer himself to be a real-life case study on how NOT to handle complaints?
Let’s not forget the Airbus bribery scandal that cast a shadow over Fernandes’ otherwise glittering career.
Back in 2020, Fernandes and AirAsia chairman Tan Sri Kamarudin Meranun stepped aside temporarily after it was revealed that Airbus had paid US$50 mil in sponsorship to a sports team that they co-owned.
This payment raised eyebrows because it coincided with AirAsia’s decision to purchase 180 planes from the manufacturer.
Fernandes was later cleared by an independent probe but the episode has left a lingering doubt over the basis for appointing him to an academic position at Malaysia’s premier university.
Tan Sri Tony Fernandes “trying out a new plane”
In early 2020, Fernandes was embroiled in another controversy when he failed to show up in India for a corruption probe.
The authorities there had filed criminal money laundering charges against several AirAsia officials in May 2018 for allegedly trying to manipulate government policies. It was reported that Fernandes would face arrest if found culpable.
While Fernandes will be imparting wisdom on business leadership, it might be worth considering whether UM’s faculty could offer him a class (lesson?) or two.
After all, AirAsia has not been immune to financial turbulence. In the thick of the pandemic, the airline’s finances took a serious hit, forcing the company to seek additional funding and re-brand under Capital A Bhd to diversify away from the struggling aviation business.
UM Vice-Chancellor Datuk Seri Dr Noor Azuan Abu Osman has praised the strategic synergy that Fernandes’ appointment brings to the university, contending that this would help UM become more “future-driven.”
But as much as Fernandes’ career has been about embracing risk and innovation, shouldn’t we also ask whether this is the right kind of example for the next generation of business leaders?
Love him or hate him at the end of the day, Fernandes is a giant corporate figure in his own right.
He’s made his mark not just in Malaysia but the world over. However, it’s essential that students not only learn from his successes but also critically examine his mistakes and missteps – and to learn not to repeat them along their career path. – Oct 5, 2024
The authorities there had filed criminal money laundering charges against several AirAsia officials in May 2018 for allegedly trying to manipulate government policies. It was reported that Fernandes would face arrest if found culpable.
While Fernandes will be imparting wisdom on business leadership, it might be worth considering whether UM’s faculty could offer him a class (lesson?) or two.
After all, AirAsia has not been immune to financial turbulence. In the thick of the pandemic, the airline’s finances took a serious hit, forcing the company to seek additional funding and re-brand under Capital A Bhd to diversify away from the struggling aviation business.
UM Vice-Chancellor Datuk Seri Dr Noor Azuan Abu Osman has praised the strategic synergy that Fernandes’ appointment brings to the university, contending that this would help UM become more “future-driven.”
But as much as Fernandes’ career has been about embracing risk and innovation, shouldn’t we also ask whether this is the right kind of example for the next generation of business leaders?
Love him or hate him at the end of the day, Fernandes is a giant corporate figure in his own right.
He’s made his mark not just in Malaysia but the world over. However, it’s essential that students not only learn from his successes but also critically examine his mistakes and missteps – and to learn not to repeat them along their career path. – Oct 5, 2024
Covid was a Black Swan event, and many, many businesses, regardless previously well run or badly run suffered tremendously.
ReplyDeleteIt is not fair to judge Tony principally on how Air Asia handled the Covid event.
Wonder what this writer has against Tony personally ? If you hold a mirror against M'sian tycoons many would fall apart. For example during Covid, one glove brand from Malaysia who's founder became a billionaire overnight had his products banned in the US because of modern-day slavery allegations with deaths and threats on foreign workers living in unprotected crowded dorms . Later he won the 'Asia's Best HRD'award. He also invested about 5% into a local private university in Cyberjaya. There's so many other stories. Maybe it's just that he started with nothing other than monetizing his own shares from BMI WARNER where he was managing director and resigned
ReplyDeleteHe bought the bankrupt airline and turned it around from Dr. M which was saddled in debt. He was a bottom-up story and later on he had to swim with the cronies after listing . So cronyism has always a crept into Malaysian business. He had a lot of obstacles not being able to fly from Subang. Right after IPO but other low cost airlines were given rights.
So let's get off a high horse and look around and hold a mirror to everyone else. He's the only brand from Malaysia other than Petronas who's recognized internationally and it's both a Harvard business case and Ivey Business School in the University of Ontario.
AirAsia Malaysia: The IPO Decision
https://www.hbsp.harvard.edu/product/A00311-PDF-ENG?Ntt=
AirAsia Malaysia: The IPO Decision
https://store.hbr.org/product/airasia-flying-low-cost-with-high-hopes/HKU833?srsltid=AfmBOop7qK_Ht2tS-4jp3KRRdMidNvQXDSSadIa08W_n1JCfH08q317k
AirAsia X: Can the Low Cost Model Go Long Haul? (Bestseller).
https://hbsp.harvard.edu/product/W12704-PDF-ENG
https://www.iveypublishing.ca/s/product/airasia-malaysia-the-ipo-decision/01t5c00000D63jlAAB
https://www.iveypublishing.ca/s/product/airasia-x-can-the-low-cost-model-go-long-haul/01t5c00000CwhxZAAR
A Malaysian brand to be proud of with no government help. Obstacles all the way right up to the point of listing.