Faculty of Business & Management

January 2015

BBCP4103
Career Planning And Development

MATRICULATION NO:

900626055454001

IDENTITY CARD NO.

900626-05-5454

TELEPHONE NO.

012-3494019

E-MAIL

devikannan@oum.edu.my

LEARNING CENTRE

Negeri Sembilan Learning Centre

Introduction
Managers played an important role in an organization which dictate the companys
future leading by determine direction, state a clear vision for employees to follow, and help
employees understand the role they play in attaining goals. A managers already have such huge
responsibilities in running a company, not to mention the master manager that are applicable
only to a few out there who has succeed tremendously over years. The best candidate which I
would refer him as master manager would be Air Asia Group CEO Tan Sri Tony Fernandes .The
name Tony Fernandes or now, with the Title Dato Sri Anthony Francis Fernandes, is already a
household name not only in Malaysia, but throughout the ASEAN region, and beyond especially
in the aviation industry. Born 30 April 1964, in Kuala Lumpur . Grandfather and Malacca
Portuguese mother, the late Stephen Edward Fernandes and Ena Dorothy Fernandez. When he
was young, he used to follow his mother, who is a Tupperware dealer to parties and
conventions .Tony Fernandes was sent on a jet plane in 1976 at the tender age of 12 to Epsom
College, London. The wishes of his parents on enrolling him into a fancy boarding school that is
associated with Medicine, like all great leader, he made a total 180 degree turn and end up
graduating in London School of Economics in 1987 . But during his years in the boarding school,
young Tony was home sick and pleas to be home, but due to the high airfare, his parents does not
allow him to be home even during the holidays. From that day onwards it was his ultimate dream
to provide low cost flights. Born in Kuala Lumpur, Malaysia, Fernandes, who is part Goan and
part Malaccan Portuguese, is the son of the late Dr. Stephen Edward Fernandes, and Ena Dorothy
Fernandez. When he was young, he used to follow his mother, a businesswoman, to Tupperware
dealer parties and conventions. Educated at Epsom College 1977-83 and then graduating from
the London School of Economics in 1987, he worked very briefly with Virgin Atlantic as an
auditor, subsequently becoming the financial controller for Richard Branson's Virgin Records in
London from 1987 to 1989.Tony was admitted as Associate Member of the Association of
Chartered Certified Accountants (ACCA) in 1991 and became Fellow Member in 1996. Upon his
return to Malaysia, he became the youngest-ever managing director of Warner Music (Malaysia)
Sdn Bhd. Though an accountant, Fernandes is an amateur guitarist and there lies his musical
inclination. He was responsible for revolutionizing ethnic music, bringing them into the
mainstream of contemporary Malaysian music.
He subsequently became the South East Asian regional vice-president for Warner Music
Group from 1992-2001. When Time Warner Inc. announced its merger with America Online Inc.,
Fernandes left to pursue his dream of starting a budget no-frills airline. However, his application
for a license from the Malaysian government was rejected. It was through Datuk Pahamin A.
Rejab, the former secretary-general of the Malaysian Domestic Trade and Consumer Affairs
Ministry that Fernandes got to meet up with the then Prime Minister, Tun Dr. Mahathir
Mohamad in October 2001. The wily Malaysian prime minister had a cropper in his hand, which
he had been trying to unload for nearly two years. AirAsia, the heavily-indebted subsidiary of the
Malaysian government-owned conglomerate, DRB-Hicom, was losing money big-time. Instead
of starting from scratch, Mahathir advised Fernandes to buy an existing airline instead.
Fernandes mortgaged his home and sank his savings to acquire the company, comprising two
ageing Boeing 737-300 jets (9M-AAA and 9M-AAB) and USD$11 million (RM40 million)
worth of debts, for 26 US cents (one ringgit), and transformed it into an industry player.

Coming just after the September 11, 2001, undoubtedly the worst day in the history of
commercial aviation when nobody wanted to fly, everyone thought that Fernandes had gone
"crazy", predicting that the company would fail miserably. Yet, just one year after his takeover,
AirAsia had broken even and cleared all its debts. Its initial public offering (IPO) in November
2004 was oversubscribed by 130 per cent. Fernandes says his timing was in fact perfect: Since
September 11, 2001, aircraft leasing costs were down 40%. Also, airline lay-offs mean
experienced staff were readily available. He believed Malaysian travellers would embrace a cutrate air service that will save them time and money, especially in a tight economy. That was why
he copied one of the world's most successful no-frills carriers, Ryan air out of Ireland (which in
turn is modeled after Southwest Airlines in the United States). Fernandes reckons that about 50
per cent of the travellers on Asias budget airlines are first-time flyers. Before AirAsia, he
estimates that only six per cent of Malaysians had ever travelled in a plane. In 2007, Tony
Fernandes has again created a "first" in Asia by starting a hotel chain, Tune Hotels which is
based on the no-frills concept. The first Tune Hotel was opened at the intersection of Jalan Sultan
Ismail and Jalan Tuanku Abdul Rahman in the heart of Kuala Lumpur. Expansions are in the
works as more hotels will be opened up throughout Malaysia. Fernandes' biggest achievement
has been to turn AirAsia into an international carrier. Before the creation of AirAsia, countries in
the region did not have open-skies agreements. In mid-2003, Fernandes' lobbying pushed Dr
Mahathir to raise the idea with the leaders of neighboring Thailand, Indonesia, and Singapore. As
a result, those nations have granted landing rights to AirAsia and other discount carriers.
Fernandes has indeed set in motion the advent of budget carriers in the region.
Like all successful leader, Tony Fernandes have the all the hallmark that made him who
he is today. One of the main trademarks of his success is his vision and his know-how on what
actually the consumer wants . His hand on approach is one to be admired. Busy with various
venture for example tune hotel, tune talk and Lotus Formula one, Tony Fernandes still find time
for his main priority, which is Air Asia, his leadership based on the principal " Practice what you
preach" always apply. Every month he spends his time in various division of Air Asia, from day
as a baggage-handler to a cabin crew. He has even established a division to hold gathering
among the staffs . A close bond with his staff creates a friendly working environment with equal
opportunities for everyone is the main ingredient behind of the success of Air Asia, according to
Tony the company works as a family.
Tony Fernandes is above all things a dreamer. He and his partner Dato Kamarudin
acquired struggling AirAsia in December 2001. Despite or perhaps because they had no prior
airline experience they transformed AirAsia into one of the fastest-growing and most successful
low fare airlines in the world. One of the secrets of Air Asias success has been its unique culture
and management style. Tony works hard to create an environment where each Allstar (what
Air Asia calls its team members) can learn, grow and achieve his or her own dreams. His career
goals are dream big. Tonys childhood dreams included running an airline, owning an English
football club and a owning Formula One racing team. He attributes being able to achieve all
three goals to dreaming big and having the courage follow his dream. Not only that, he
encourage people to pursue their passions. Air Asia works hard to create an environment where
people can learn, grow and do what turns them on. Being encouraged to pursue their passions is
one of the reasons Allstars love their jobs at Air Asia. Other than that, break down hierarchy is

also his career goals at which he encourage people to speak up and get every brain in the game
by relaxing formality and breaking down walls (literally Air Asia executives sit with other
Allstars in an open floor plan).He also hire the right people. Look for hunger in their eyes and
passion in their hearts. In addition, he is clear about his mission. Air Asias mission Now
Everyone Can Fly animates the Allstars. They know that Air Asias low fares make it possible
to bring families together, improve businesses and enable people to explore and have new
adventures.
He rose to prominence by turning Air Asia, a fledging government-linked commercial
airline, into a highly successful public-listed company. Fernandes was also instrumental in
lobbying the then-Malaysian Prime Minister, Tun Dr. Mahathir Mohamad in mid-2003, to
propose the idea of open skies agreements with neighboring Thailand, Indonesia, and Singapore.
As a result, these nations have granted landing rights to Air Asia and other discount carriers .But
his appetite for taking risks had him move into the uncertain world of airline industry and that
too, right after the 9/11 terror attacks. In October 2001, Fernandes mortgaged his home to buy an
airline for one ringgit (Rs 17 at current exchange rates). It meant he bought two ageing Boeing
737 jets, 200 employees and $11 million in debt. A year later, the airline miraculously broke
even. There was no turning back. Today, if the West has the loose-talking Micheal O'Leary, the
CEO of Dublin-based Ryan air, the low-cost carrier that is both loved and loathed in Europe, the
East has Tony Fernandes, the group CEO of the Kuala Lumpur-based low-cost airline AirAsia
Berhad. Fernandes is the only airline chief on this side of the planet who has a way with words
and cheap tickets, which he manages to offer without losing the plot.
Last year, Fernandes, who owns a Formula One racing team, bought British sports car
manufacturer Caterham and soccer club Queens Park Rangers to add to his kitty of businesses in
hotel, education , mobile phone and insurance industry. He is one of the first CEOs to harness the
power of social media networks to sell tickets and market his airline. One Wednesday afternoon
he wrote on his Facebook page, 'within a few hours AirAsia will be making a significant step in
our journey of being an Asean airline'. Within hours, he received about 800 likes. On Twitter, he
does an average of at least 10 tweets a day. Fernandes believes in involving himself in the daytoday functioning of an airline.
Air Asia has made tough calls recently, paying $115 million to exit fuel hedges last year
and unwinding interest rate swaps, related to aircraft term loans. The short-term pain will save
money in the longer-run and "we won't have a noose around our necks going forward over this
year", says Fernandes. "We had to think on our feet. People initially criticized us, but we turned
out to be right. The company's culture allows us to move fast when it comes to making decisions
like those." As a result, Air-Asia had a unit cost of 3.08 cents per ASK in 2008, 10% lower than
the previous year. "That is the toughest part of the business and our margins are among the best
in the world. Retaining focus on the key business helps, and that remains serving markets within
four hour's flying time of its three hubs. "I'm still scratching the surface in Southeast Asia," he

says. "I'm still small in Thailand and Indonesia, relative to their population sizes, and we're
eyeing joint-ventures in the Philippines and Vietnam. We've faced obstacles in Vietnam, but we
are patient. It took us seven years to get Kuala Lumpur-Singapore, and a lot can change in
Vietnam in the next five years. India and China are next in his sights, but that is in tandem with
AirAsia X, which will serve the markets four to eight hours out of Kuala Lumpur. These include
destinations in Japan, South Korea, Australia, the United Arab Emirates, Bahrain, India and
China.
Fernandes is not involved in AirAsia X's day-to-day operations, even though he gives a lot
of input into its strategic direction. Walking up one of the airline's new A330s, which is about to
take off for Melbourne, and meeting the passengers, he becomes animated. It is clear that this
operation is close to his heart. After all, the long-haul operation was his original plan until former
Ryan air executive Conor McCarthy, who became an Air Asia investor, persuaded him that the
short-haul market had better prospects.
He admits it was the right move: "Air Asia X is a wonderful addition; it brings the brand
to another level. Look, it is sexier flying to London and Melbourne than Bandung," says
Fernandes. "But without Air Asia's short-haul market and the connectivity to Southeast Asia it
offers, there would be no Air Asia X. That is why it will be hard for anyone else to emulate it.
Look at Oasis Hong Kong what else did they offer apart from flights to London? Is it any
surprise that they had to shut down? Keeping Air Asia X as a separate company was a "clever
step" that protects Air Asia, which has only a 16% stake in it, he adds. Aero Ventures, which
Fernandes started with other prominent Malaysians and Air Canada's Robert Milton, owns 48%
of the long-haul operation. The other investors are Richard Branson's Virgin Group (16%),
Bahrain's Manara (10%) and Japan's Orix (10%). "We work on lots of things together, but we
have not put down any money since we started it up. It is an independent business that derives its
own cash and is profitable."
Air Asia itself, which listed on Bursa Malaysia in 2004, posted a net loss last year - but
Fernandes says the first quarter of 2009 was profitable. Its shares have had a rough time on the
Kuala Lumpur stock exchange and last year, when the price fell to around 0.80 ringgit,
Fernandes and the other founders considered taking the airline private. They abandoned that plan
after credit became tight. "We saw value in the price at the end of last year, and we still do, but
we could not raise the money," he explains. Even if the average Malaysian shareholder may not
see value, others could. Branson is mentioned as a possible investor, but when questioned about
it Fernandes says with a laugh: "Ask Branson about that one!" Equity partnerships with other
airlines, however, are a possibility if they bring tangible benefits. The world is a very small
place. Will there be combinations between airlines? Sure. Will we consider something? Yes, if it
makes sense. Air France-KLM is a good example of how something like that can work, but the
combination must add value to shareholders. The reality is that many mergers are driven by ego
or airline necessity but, truthfully, most have not done a good job of it.

Fernandes concedes he may have to step down if there is a change in ownership, but
he insists it may not be too hard. "If someone else feels that they can do a better job, sure. One of
the great things is to know your sell-by date. Many people in Asia cannot let go. You are not a
good leader unless you have a succession plan." However, he adds with a grin: "I'm not looking
to leave any time soon. There's still a lot to do. Fernandes gets a kick out of overcoming
challenges, and there are still plenty of them. The biggest, he says, are airport operators, in
particular Malaysian Airports, which runs KLIA and the low-cost terminal. MAB has
successfully lobbied the government, preventing Air Asia from building its own low-cost airport
near Kuala Lumpur. Instead, it promised it would expand the LCCT by 2011. A visibly
exasperated Fernandes points out that they made similar promises in the past and nothing
happened. The existing low-cost terminal is already bursting at its seams. Airports are parasites
and, in Asia, their pricing is not transparent. Low-cost carriers should not be levied the same fees
as the full-service airlines. We bring in a lot more volume, and there is plenty of ancillary income
- just look at how crowded the shops and restaurants in our terminal are," he says. "I am an
aggressive entrepreneur, but Asian airports are slow to respond. If anything stops our growth, it
is the airports. If we have to defer aircraft orders, it is because of them. They curb our potential.
If the airports meet his ambitions, he says the possibilities are mind-boggling. "Southwest
Airlines has 400 aircraft and a market of 300 million. On top of that, in America, you can drive
from one end to another and they have pretty good train services. We don't have that over here,"
Fernandes points out. "Air-Asia is in a playground of 600 million people in Asian. If you add
India and China, the other key markets we can touch, you can easily add a billion people, maybe
more. That is Air-Asia's potential, and we aim to get there."

Conclusion
As a Conclusion , I think Tony Fernandes is a great example for
everyone. I believe Tony Fernandes is a brilliant leader. His way of leading people is
definitely different from other leaders. Unlike most bosses who will only give out
work to other people, Fernandes will go out every month and make sure he
experiences how the workers do their work. Tony Fernandes was a leader, and yet
he is also counted as the team itself. For a leader, it is quite hard for them to
connect with their staff on a personal level. The way he deals with different
situations and problems in his company is really good. If he thinks there is any

wrong with the staff, he would go and ask them directly. The best moment of him
when he was a leader was creating the TV show The Apprentice. The Apprentice
is a show where a group of businessmen and women compete to work with Tony
Fernandes himself. He listened to their opinions and reasons, and pushed the
candidates to work their best. Everyone should take him as an inspiration, an idol,
and a respected entrepreneur for taking such great moves and courage to develop
significant increment in our countrys economy. Malaysia is now a well known
country for his actions in developing AirAsia as the best Southeast Asia low cost
airlines. This is why I chose Tony Fernandes as my leader.