Monday, July 17, 2006

AirAsia: A Lesson to Corporate Malaysia

Excerpt from BizFocus Interview with AirAsia entitled:

Taking AirAsia higher

Fernandes: We're a market-driven company. We have always believed in the market, otherwise we wouldn't be here. We have never objected to new airlines. We have never objected to anything that is market- driven.

If you see in our press statements over the last five years, we have never once had a complaint against MAS on international (routes). Even there, it is not a level playing field, but life's too short. We are a market- driven company. We don't believe that anyone should be given subsidies.

We believe that market should stand on its own and decide whether we are good or not.

We've struggled all the way, from two planes. Nobody believes that someone is not behind us, that two guys could pull this off.

We've had to put up with a lot of that kind of questioning. I think we have done Malaysia proud and we've done it on our own two feet, and we've inspired hundreds of young people who are thinking that if those two guys can do it so can we.

We can't fail. There's no bailout for us. If we fail, we're history. So we fight. We are responsible for 4,000 employees now. I take that very seriously.

Isn't Malaysia better with AirAsia? Where was MAS' low fares before us. We have liberated air travel and made it more competitive.

We have to be aggressive. We don't have anybody else. If we fail, that's it.

We don't have a Khazanah to turn to and so we have to fight, and we have been fighting for five years.

If we fail, it's gone, while a state enterprise (and GLC) has a recourse. It is the same in any country. Malaysia is not unique in that.

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