Tony Fernandes
Encyclopedia
Tan Sri Anthony Francis Fernandes CBE
CBE
CBE and C.B.E. are abbreviations for "Commander of the Order of the British Empire", a grade in the Order of the British Empire.Other uses include:* Chemical and Biochemical Engineering...

(born 30 April 1964; also known as Tony Fernandes) is a Malaysian entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...

 and the founder of Tune Air Sdn. Bhd., who introduced the first budget no-frills airline
Low-cost carrier
A low-cost carrier or low-cost airline is an airline that generally has lower fares and fewer comforts...

, AirAsia
AirAsia
AirAsia Berhad is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost...

, to Malaysians with the tagline "Now everyone can fly". He has since founded the Tune Group
Tune Group
Tune Group Sdn Bhd is a group of entertainment and leisure companies, founded by Malaysian entrepreneurs Tony Fernandes and Kamarudin Meranun. The group's brands includes low-cost airline Air Asia and Formula One team Lotus Racing...

 of companies.

He rose to prominence by turning AirAsia
AirAsia
AirAsia Berhad is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost...

, a failing government-linked commercial airline, into a highly successful budget airline public-listed company
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...

. Fernandes was also instrumental in lobbying the then-Malaysian Prime Minister
Prime Minister of Malaysia
The Prime Minister of Malaysia is the indirectly elected head of government of Malaysia. He is officially appointed by the Yang di-Pertuan Agong, the head of state, who in HM's judgment is likely to command the confidence of the majority of the members of that House of Representatives , the...

, Tun Dr. Mahathir Mohamad in mid-2003, to propose the idea of open skies agreements with neighbouring Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

, and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

. As a result, these nations have granted landing rights to AirAsia and other discount carrier
Low-cost carrier
A low-cost carrier or low-cost airline is an airline that generally has lower fares and fewer comforts...

s.

Early years

Born in Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...

 to a Goan
Goan Catholics
The Goan Catholics are an ethno-religious community of Roman Catholics and their descendants from the state of Goa, located on the west coast of India. They are Konkani people and speak the Konkani language...

 father, Stephen Edward Fernandes, and Kristang
Kristang people
The Kristang are a creole ethnic group of people of mixed Portuguese and Malaccan descent based in Malaysia and Singapore. People of this ethnicity have strong Dutch heritage, some British as well as Chinese and Indian heritage due to intermarriage, which was common among the Kristang...

 mother, Ena Dorothy Fernandez. At a young age, Tony used to follow his mother, a businesswoman, to Tupperware
Tupperware
Tupperware is the name of a home products line that includes preparation, storage, containment, and serving products for the kitchen and home, which were first introduced to the public in 1946....

 dealer parties and conventions. He was educated at Epsom College
Epsom College
Epsom College is an independent co-educational public school in Epsom, Surrey, England, for pupils aged 13 to 18. Founded in 1853 to provide support for poor members of the medical profession such as pensioners and orphans , Epsom's long-standing association with medicine was estimated in 1980 as...

 1977-83 and then graduated from the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...

 in 1987. He worked very briefly with Virgin Atlantic
Virgin Atlantic Airways
Virgin Atlantic Airways Limited is a British airline owned by Sir Richard Branson's Virgin Group and Singapore Airlines...

 as an auditor, subsequently becoming the financial controller
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...

 for Richard Branson
Richard Branson
Sir Richard Charles Nicholas Branson is an English business magnate, best known for his Virgin Group of more than 400 companies....

's Virgin Records
Virgin Records
Virgin Records is a British record label founded by English entrepreneur Richard Branson, Simon Draper, and Nik Powell in 1972. The company grew to be a worldwide music phenomenon, with platinum performers such as Roy Orbison, Devo, Genesis, Keith Richards, Janet Jackson, Culture Club, Lenny...

 in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 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 managing director of Warner Music (Malaysia) Sdn Bhd. Though an accountant, Fernandes is an amateur guitarist and also has achieved grade 8 piano which is where his musical inclination lies. He was responsible for revolutionising ethnic music, nasyid and dangdut, bringing them into the mainstream of contemporary Malaysian music.

He subsequently became the South East Asian regional vice-president for Warner Music Group
Warner Music Group
Warner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...

 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.

Launching AirAsia

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 then Prime Minister
Prime Minister of Malaysia
The Prime Minister of Malaysia is the indirectly elected head of government of Malaysia. He is officially appointed by the Yang di-Pertuan Agong, the head of state, who in HM's judgment is likely to command the confidence of the majority of the members of that House of Representatives , the...

, Tun Dr. Mahathir Mohamad in October 2001.

AirAsia, the heavily-indebted subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

 of the Malaysian government-owned conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...

, DRB-Hicom
DRB-HICOM
DRB-HICOM Berhad is one of Malaysia's leading corporations, playing an integral role in the Automotive Manufacturing, Assembly and Distribution industry through its involvement in the passenger car and four wheel drive vehicle market segment, the national truck project and the national motorcycle...

, was losing money speedily. 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
Jet aircraft
A jet aircraft is an aircraft propelled by jet engines. Jet aircraft generally fly much faster than propeller-powered aircraft and at higher altitudes – as high as . At these altitudes, jet engines achieve maximum efficiency over long distances. The engines in propeller-powered aircraft...

 (9M-AAA and 9M-AAB) and USD$11 million (RM40 million) worth of debts, for 26 US cents (one ringgit
Ringgit
Ringgit mostly refers to the Malaysian ringgit, which is the local currency in Malaysia, but it can also refer to the Brunei dollar or Singapore dollar in the Malay language. The word ringgit was originally used to refer to the serrated edges of Spanish silver dollars widely circulated in the area...

), and transformed it into an industry player.

Coming just after the 11 September 2001, undoubtedly the worst day in the history of commercial aviation
Commercial aviation
Commercial aviation is the part of civil aviation that involves operating aircraft for hire to transport passengers or cargo...

 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 11 September 2001, aircraft leasing costs
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....

 were down 40%. Also, airline lay-offs mean experienced staff were readily available. He believed Malaysian travellers would embrace a cut-rate 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, Ryanair
Ryanair
Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport....

 out of Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

 (which in turn is modelled after Southwest Airlines
Southwest Airlines
Southwest Airlines Co. is an American low-cost airline based in Dallas, Texas. Southwest is the largest airline in the United States, based upon domestic passengers carried,...

 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

). Fernandes thinks that about 50 per cent of the travellers on Asia’s budget airlines are first-time flyers. Before AirAsia
AirAsia
AirAsia Berhad is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost...

, he estimates that only six per cent of Malaysians had ever travelled in a plane.

Other ventures

In 2007, Tony Fernandes started a hotel chain, Tune Hotels
Tune Hotels
Tune Hotels.com is a “limited service” hotel chain operated by Tune Hotels Regional Services Sdn Bhd that provides a claimed “5-star sleeping experience at a 1-star price” accommodation. Tune Hotels is part of the Tune Group, the private investment group of Tan Sri Tony Fernandes, founder and Group...

, 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
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...

. Expansions are in the works as more hotels will be opened up throughout Malaysia. Another new Tune Hotel will be opening soon in Bali, Indonesia.

As of 2009, Fernandes is also the president of the ASEAN Basketball League
ASEAN Basketball League
The ASEAN Basketball League, often abbreviated to the ABL, is a men's professional basketball league in Southeast Asia. Six clubs from six different countries of the Association of Southeast Asian Nations competed in the league's 2009 inaugural season...

 (ABL). Fernandes has stated that it has always been a dream of his to be able to be involved with the development of sports in the ASEAN region.

Lotus Racing/Team Lotus/Caterham F1 Team

Fernandes is the team principal of the new Team Lotus, which raced in the 2010 Formula One season
2010 Formula One season
The 2010 Formula One season was the 61st Formula One season of World Championship motor racing competition. Red Bull Racing won its maiden Constructors' Championship with a one-two finish in Brazil, while Red Bull Racing's Sebastian Vettel won the Drivers' Championship after winning the final race...

, and has an entry for 2011, albeit with considerable controversy about the Lotus name. The naming dispute with Group Lotus was partly resolved with the ruling that Fernandes is the legal owner of the Team Lotus name and brand in Formula One, although Group Lotus has mounted an appeal.

On 16 December 2009, Fernandes accepted a "challenge" from Richard Branson
Richard Branson
Sir Richard Charles Nicholas Branson is an English business magnate, best known for his Virgin Group of more than 400 companies....

, a fellow airline boss and the owner of Lotus' fellow F1 newcomers Virgin Racing
Virgin Racing
Marussia Virgin Racing, the trading name of Virgin Racing Limited, is a Russian owned Formula One racing team based in the United Kingdom and racing on a Russian licence, which made its debut in the 2010 Formula One season. It was granted entry as Manor Grand Prix on 12 June 2009, as one of four...

, where the losing team's boss should work on the winner's airline for a day dressed as a stewardess joking "The sexier the better. Our passengers will be delighted to be served by a Knight of the Realm, but knowing Richard, the real challenge will be to prevent him from asking our guests 'coffee, tea or me?' That would be scary." On top of this, the team also produced a poster depicting Branson in an Air Asia uniform.

Caterham Cars

On 27 April 2011, Caterham Group owner Tony Fernandes announced that his team had purchased Caterham Cars
Caterham Cars
Caterham Cars is a manufacturer of specialist lightweight sports cars based in Caterham, Surrey, England and part of the British motor industry. Their only current model, the Caterham 7 , is a direct evolution of the Series 3 Lotus Seven designed by Colin Chapman and originally launched in 1968. A...

.

West Ham United

Fernandes is a fan of English club West Ham United
West Ham United F.C.
West Ham United Football Club is an English professional football club based in Upton Park, Newham, East London. They play in The Football League Championship. The club was founded in 1895 as Thames Ironworks FC and reformed in 1900 as West Ham United. In 1904 the club relocated to their current...

 and has been involved in talks concerning a takeover of the club. In May 2011, Fernandes was linked with a buying a share in the club. On 1 June 2011, his Twitter feed stated that he had made an offer to the West Ham board, although David Sullivan and David Gold later rejected this offer.

Queens Park Rangers

On 18 August 2011, he was unveiled as the majority shareholder of Queens Park Rangers
Queens Park Rangers F.C.
Queens Park Rangers Football Club is an English professional football club, based in White City, Hammersmith and Fulham, west London. As the 2010-11 Football League Championship champions, they now play in the top tier of English football the Premier League, for the first time in 15 years...

, having bought Bernie Ecclestone
Bernie Ecclestone
Bernard Charles "Bernie" Ecclestone is an English business magnate, as president and CEO of Formula One Management and Formula One Administration and through his part-ownership of Alpha Prema, the parent company of the Formula One Group of companies. As such, he is generally considered the primary...

's 66% share. He was also named as chairman of QPR Holdings Ltd.

Achievements and awards

Fernandes' biggest achievement has been to turn the AirAsia airline 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 neighbouring Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

, and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

. 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. Now, Southeast Asia hosts a number of low-price carriers such as:
  • Malaysia's Firefly
    Firefly (airline)
    FlyFirefly Sdn Bhd, operating as Firefly, is a full service point to point carrier and a full subsidiary of Malaysia Airlines. Its head office is located on the grounds of Sultan Abdul Aziz Shah Airport in Subang, Selangor. It claims to be the first community airline in Malaysia...

     (owned by Malaysia Airlines
    Malaysia Airlines
    Malaysian Airline System Berhad , DBA Malaysia Airlines , is the government-owned flag carrier of Malaysia. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its eastern hub in Kota Kinabalu. It has its headquarters on the grounds of Sultan Abdul Aziz...

    )
  • Singapore’s Tiger Airways
    Tiger Airways
    Tiger Airways Singapore Pte Ltd, operating as Tiger Airways Singapore, is a low cost airline which commenced services on 25 March 2005. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by Singapore Airlines...

     (owned by Singapore Airlines
    Singapore Airlines
    Singapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...

    );
  • Singapore’s Valuair
    Valuair
    Valuair Limited is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and...

     and Jetstar Asia
    Jetstar Asia Airways
    Jetstar Asia Airways Private Limited , operating as Jetstar Asia, is a low-cost airline headquartered in Singapore. It is the Asian offshoot of Qantas Jetstar Airways...

     (partly owned by Qantas Airways) (both airlines merged in 2005);
  • Thailand's Nok Air
    Nok Air
    Nok Air , the Thai word for bird) is a low-cost airline headquartered in Sathorn, Bangkok, Thailand, operating domestic and international services out of Bangkok Don Mueang Airport. Nok Air is the budget airline of Thai Airways International...

    ;
  • Indonesia's Lion Air
    Lion Air
    Not to be confused with the Sri Lankan airline Lionair.PT Lion Mentari Airlines, operating as Lion Air, is Indonesia’s largest private carrier and Asia’s first hybrid carrier which offers both economy and business-class seating, based in Jakarta, Indonesia. Lion Air also flies to Singapore,...

    ;
  • Vietnam's Jetstar Pacific (formerly Pacific Airlines), and
  • Philippines's Cebu Pacific
    Cebu Pacific
    Cebu Air, Inc., operating as Cebu Pacific Air, is based on the grounds of Ninoy Aquino International Airport , Pasay City, Metro Manila, the Philippines. It offers scheduled flights to both domestic and international destinations...

    .


In 2004, AirAsia formed successful joint ventures in Thailand and Indonesia where AirAsia holds 49% stake in both companies. Thai AirAsia, a joint venture with Shin Corporation, Thailand’s largest telecommunication conglomerate, took to the skies in Feb 2004 and has to date carried over 1 million guests in its first year of operations. PT AWAIR, re-launched as a low fare airline on Dec 8th 2004 and subsequently re-named Indonesia AirAsia, presently serves 5 domestic destinations in Indonesia.

Fernandes has received several awards for his achievements:
  • International Herald Tribune
    International Herald Tribune
    The International Herald Tribune is a widely read English language international newspaper. It combines the resources of its own correspondents with those of The New York Times and is printed at 38 sites throughout the world, for sale in more than 160 countries and territories...

     Award for the "Visionaries & Leadership Series", for his outstanding work in AirAsia;
  • "Malaysian CEO of the Year 2003" in December 2003 — a highly acclaimed recognition, so far awarded to only nine other recipients in the country, by American Express
    American Express
    American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...

     and Business Times. The award was an initiative to recognize entrepreneurial and managerial expertise and performance among leaders of Malaysian corporations.
  • Named the joint winner of the CEO of the Year 2003 award by American Express Corporate Services and Business Times .
  • "Emerging Entrepreneur of the Year" in the Ernst & Young
    Ernst & Young
    Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....

     "Entrepreneur Of The Year Awards" in 2003;
  • Made the list of Business Week's "25 Stars of Asia" in 2005.
  • "Malaysian Ernst & Young Entrepreneur of the Year 2006"

  • "Excellence In Leadership - Asia Pacific Leadership Awards 2009"

  • 2010 Forbes Asia businessman of the year
  • 2011 No. 52, in FastCompany Top 100 Most Creative People in Business.


Fernandes has also been honoured by King of Malaysia with title Tan Sri, Dato' Sri and also by the government of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 with the Legion d'Honneur
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...

 Order. In 2011, according to a Team Lotus press release, Tony Fernandes was awarded a CBE
CBE
CBE and C.B.E. are abbreviations for "Commander of the Order of the British Empire", a grade in the Order of the British Empire.Other uses include:* Chemical and Biochemical Engineering...

 or Commander of the Order of the British Empire "for services to promote commercial and educational links" between Malaysia and the UK.

Wealth

In 2010, Forbes Asia valued Fernandes' personal wealth at $330 million ranking him at number 19 on the Forbes list of Malaysia's Richest.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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