Sunday, September 23, 2007 Business tips from ‘Mr. No Frills’
HE WAS a high-flying corporate executive from a global music brand six years ago. Then only 37, Malaysian Tony Fernandes drove a company Jaguar, listened to a $10,000 stereo system in his office, and hobnobbed with recording stars and entertainment executives as Warner Music’s top honcho in Southeast Asia.
Then he went 'crazy'. He quit Warner, mortgaged his home, and sank his lifetime savings into a Malaysian airline that had racked up an $11-million debt even before 9/11. To Fernandes, it was the realization of a boyhood dream to own an airline; to his peers in the corporate world, it was like jumping off a plane without a parachute.
"Most people thought I was crazy," says Fernandes. "When we started, they said it wouldn't work. They said we would die."
Fernandes not only survived the costly plane ride; he thrived. His Air Asia is now an international carrier world-renowned for revolutionizing Southeast Asian air travel as Asia's first budget carrier. Its no-frills business model has spawned copycats among Southeast Asian airlines offering low-cost fares and forced Asian skies open.
Fernandes is arriving in Manila as one of the 13 global business leaders and visionaries speaking at the 6th Management Association of the Philippines (MAP) International CEO Conference at the Makati Shangri-La this October 2 to 3.
How does he do it? Here are some tips from someone who started with zero experience in running an airline and is now redefining travel in the Asia-Pacific.
1. It's all about passion. He wanted to start Malaysia's first discount airline a few years ago, but he couldn't get a license. He found a way to get to then-Prime Minister Mahathir Mohamad and sold him the idea of having a discount carrier that could revolutionize Asian air travel and boost tourism in the midst of the 9/11 terrorist attacks. He paid one ringgit (26 cents) for a bankrupt carrier, paid off its $11-million debts, and turned it around in less than a year. "When I look back, it does sound kind of unbelievable... But I just felt that it was the right thing to do and nothing is going stop me," he says.
2. Hire people who share your passion. Fernandes was standing in line at the Singapore International Airport when a young student told him, "I'd love to work for you." After a chat, he sensed that the boy has talent, and that "he was going to be a superstar." A few minutes past the passport check counter, he signed up the student. "Now he runs our Singapore office," he tells CNN in a recent interview.
3. Having a good corporate culture can be a differentiating factor. Unlike many airlines, Air Asia's head office is not in a tall glass tower but right at the airport -- and for a reason.
"We have to remain humble. We have to remember our roots. Too many companies forget their beginnings and that is where it all goes wrong," the CEO says. Air Asia has a "a family environment, an open culture, with no hierarchy." No one, regardless of their pay scale, would hesitate to carry bags, clean the planes, or even email the CEO directly. "People are allowed to think. I believe a thousand brains are better than just ten," he says.
4. Invest in building your brand even though you do not have the money. He wears his red Air Asia cap in almost every public occasion for a reason. "It started as a cheap form of publicity. I was wearing the cap and getting interviews. Since we don't have the money then, we have to be creative." He says Asian companies do not usually spend a lot creating their brands "because they want to see immediate returns." He believes the intangible value of a brand is huge. "The most successful companies out there are all about brands and attracting partnerships," he adds.
5. Never lose sight of your business goals. Asked about public perception of Air Asia, he rattles off those he had read or heard: a start-up company, a challenger of brands. But Mr. Fernandes has a romantic view of his business: Air Asia is a “purveyor of dreams, taking people to places where they want to go and always dreamt of.” Five years down the road, he wants Air Asia remembered for two things: being good in corporate governance and a great place to work at. “We will take each day as it comes. As long as we are enjoying ourselves, that's the most important thing.”
Those interested to see and hear Fernandes and other top business leaders and visionaries shaping today’s global business may register online for the 6th MAP International CEO Conference at www.mapceoconference.com or call the MAP Secretariat at telephone numbers (632) 751-1149 to 52.
