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Wednesday, October 19, 2011

MAS AirAsia Story - Having two seats in the BOD and 20.5% holdings simply is not enough for some people.

Sources within revealed that Fernandes is not happy with Khazanah Holdings Bhd’s appointment of veteran GLC executive Jauhari to Malaysia Airlines’ top job. This is despite getting a very good deal in the what many see as a lopsided ‘share swap’ and ‘collaboration; where benefits for Malaysia Airlines have yet to be demonstrated. Not satisfied of getting Malaysia Airlines to cough out RM 18 million for  ’away games’  sponsorship in record time for his own personal venture in English Premier League Queen’s Park Rangers, Fernandes is said to want more.
(Former IPP CEO and now Malaysia Airlines MD Ahmad Jauhari Yahya)
Fernandes is synonymous with doing way beyond convention and accepted best practices is his business attitude and mannerism. In 2005, he managed to bulldoze his agenda incorporated in the ‘Airline Rationalisation Plan’ where Malaysia Airlines was made to surrender prized domestic routes and heavily subsidies rural air services (RAS for Sabah and Sarawak) in 2006 to AirAsia (using the brand FlyAsiaExpress). Malaysia Airlines was also prohibited to sell their fares below certain floor rates or flexible schemes, which was seen as the key success factor for AirAsia’s acceptance in the market. He also managed to build the numbers from the subsidised RAS routes, which saw the international confidence on the new-kid-on-the-block.
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