<p>Realising the potential in such a venture, Tony Fernandes, a Malaysian entrepreneur introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline “Now everyone can fly.” <br /><br />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 Dr Mahatir Mohamad in 2001.<br /><br />AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money speedily. Instead of starting from scratch, Mahathir advised Fernandes to buy an existing airline. Fernandes mortgaged his home and sank his savings in acquiring the company, comprising two ageing Boeing 737-300 jets and $11 million (RM40 million) worth of debts, for 26 US cents (one ringgit), and transformed it into an industry player.<br /><br />Addressing a group of journalists from India at his Air Asia office located at the Kualalumpur International Airport Low Cost Carrier Terminal (LCCT), last Friday, Fernandes said that India, especially South India, is a large market and an important destination for his airline. <br /><br />Asked how he had managed to survive in this tough times in the airline industry, he said, “It is focus, attention to detail, perseverance and never-give-up attitude that has helped us stay in the race. Our airline has posted a net profit of $400 million this year.” <br /><br />From just two aircraft in 2001, today Air Asia has 100 aircraft and 75 new ones have been ordered. “We pulled out of Hyderabad international airport, as the GMR group was not interested in low cost carriers. The airport charges there are too high. It is 100 per cent more than in other airports. There is Nano market and a BMW market. Most of the airports look at premium passengers. But we cater to the passengers who have never flown before.”<br /><br />Since the LCCT does not have facilities like ferrying passengers in the bus to the aircraft or having aero-bridge, the elderly passengers would be put to lot of inconvenience, he said, “We can’t solve everyone’s problems. For such passengers we provide wheelchair service. What is the point in having marble terminals which are empty.” Fernandes is interested in investing and starting Air Asia airline in South India. “Foreigners should be allowed to invest. There is too much protection in airline business,” he said. The vision 2020 for Air Asia is to have 680 planes. “But our planning department is a bit over ambitious and I think we will be able to buy 300 planes which will work out to about three a month. <br /><br />“In the north it is Amrtisar we are looking at as a destination to fly our low cost carriers. Indians are becoming more travel savvy now and realising this we are focusing on destinations like Phuket and Langkawi the hot tourist spots,” said Fernandes, 47, whose fond memory of India is representing England School Boys cricket team and scoring a century in Eden Gardens, Kolkata.</p>
<p>Realising the potential in such a venture, Tony Fernandes, a Malaysian entrepreneur introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline “Now everyone can fly.” <br /><br />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 Dr Mahatir Mohamad in 2001.<br /><br />AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money speedily. Instead of starting from scratch, Mahathir advised Fernandes to buy an existing airline. Fernandes mortgaged his home and sank his savings in acquiring the company, comprising two ageing Boeing 737-300 jets and $11 million (RM40 million) worth of debts, for 26 US cents (one ringgit), and transformed it into an industry player.<br /><br />Addressing a group of journalists from India at his Air Asia office located at the Kualalumpur International Airport Low Cost Carrier Terminal (LCCT), last Friday, Fernandes said that India, especially South India, is a large market and an important destination for his airline. <br /><br />Asked how he had managed to survive in this tough times in the airline industry, he said, “It is focus, attention to detail, perseverance and never-give-up attitude that has helped us stay in the race. Our airline has posted a net profit of $400 million this year.” <br /><br />From just two aircraft in 2001, today Air Asia has 100 aircraft and 75 new ones have been ordered. “We pulled out of Hyderabad international airport, as the GMR group was not interested in low cost carriers. The airport charges there are too high. It is 100 per cent more than in other airports. There is Nano market and a BMW market. Most of the airports look at premium passengers. But we cater to the passengers who have never flown before.”<br /><br />Since the LCCT does not have facilities like ferrying passengers in the bus to the aircraft or having aero-bridge, the elderly passengers would be put to lot of inconvenience, he said, “We can’t solve everyone’s problems. For such passengers we provide wheelchair service. What is the point in having marble terminals which are empty.” Fernandes is interested in investing and starting Air Asia airline in South India. “Foreigners should be allowed to invest. There is too much protection in airline business,” he said. The vision 2020 for Air Asia is to have 680 planes. “But our planning department is a bit over ambitious and I think we will be able to buy 300 planes which will work out to about three a month. <br /><br />“In the north it is Amrtisar we are looking at as a destination to fly our low cost carriers. Indians are becoming more travel savvy now and realising this we are focusing on destinations like Phuket and Langkawi the hot tourist spots,” said Fernandes, 47, whose fond memory of India is representing England School Boys cricket team and scoring a century in Eden Gardens, Kolkata.</p>
