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Leadership

The key to successful leadership today is influence, not authority. — Kenneth Blanchard

Tony Fernandes




Background

Name: Tan Sri Anthony Francis Tony Fernandes
Date of Birth: 30 April 1964
Age: 49
Nationality: Malaysian
Occupations: 
  • Group Chief Executive Officer and Director of AirAsia Berhad
  • Founder of Tune Group Sdn Bhd
  • Chairman of QPR Holdings Ltd
  • Found and former Team Principal of Caterham F1

Early Life and Education

Born in Malaysia, Kuala Lumpur, Anthony Francis "Tony" Fernandes used to follow his mother, a businesswoman to a Tupperware dealer parties and convention instead of following his dad, an Indian physician. At the age of six, Fernandes decided that he will start an airline however his father responded, "If you make past the doorman of Hilton Hotel, I will be happy". He graduated from the London School of Economics in Bachelor of Science in Accounting and Finance (1987).

Early Career

He makes past the doorman of Hilton and then did not stop there. Upon graduation, he work as an auditor in Virgin Atlantic, afterwards becoming a financial controller at Richard Branson’s Virgin Recording in London. 

When he is back to Malaysia from London, Fernandas become a managing director of Warner Music (Malaysia) Sdn Bhd. Subsequently, he became the vice-president of Warner Music Group in the Southeast Asian region.

Career

Fernandes left his position to pursue his dream of starting a budget no-frills airline. However, the Malaysian government first rejected his application for a license.

Tony Fernandes managed to meet up with then Prime Minister Tun Dr. Mahathir Mohamad, he advised Fernandes to buy over AirAsia, an existing airline, instead of starting right from scratch. Fernandes bought over Air Asia from a Malaysian government-owned company in September 2001. He mortgaged his house and used his personal savings to purchase the company, comprising two ageing Boeing 737-300 jets and debts worth US$11 million, for one ringgit (about 26 US cents).

Being an entrepreneur and the founder of Tune Air Sdn. Bhd. Tony Fernandes introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline of "Now everyone can fly". AirAsia, being the failed government-linked commercial airline at the point of time when Fernandes bought over, he cleared all its debt and breakeven. Within two years, he turned it into a profitable airline.

“Mr Fernandes says that he came to the industry with no preconceptions, but found it rigidly compartmentalized and dysfunctional. He wanted AirAsia to reflect his own unstuffy, open and cheerful personality. He is rarely seen without his baseball cap, open-neck shirt and jeans, and he is proud that the firm’s lack of hierarchy (very unusual in Asia) means anyone can rise to do anyone else’s job. AirAsia employs pilots who started out as baggage handlers and stewards; for his part, Mr Fernandes also practises what he preaches. Every month he spends a day as a baggage-handler; every two months, a day as cabin crew; every three months, a day as a check-in clerk. He has even established a “culture department” to “pass the message and hold parties”. (SimpliFlying, 2009)


Honours, Public Recognition and Milestones

  • 1997: "Recording Industry Person of the Year 1997" by the Recording Industry Association of Malaysia, "Malaysia CEO of the Year 2003" by American Express,2003: "Emerging Entrepreneur of the Year – Malaysia 2003", by the Business Times
  • 2004 and 2005: "Asia Pacific Aviation Executive" by the Centre for Asia Pacific Aviation ("CAPA")
  • 2005: "Airline Business Strategy Award 2005 and Low Cost Leadership" by Airline Business
  • 2006: Named as the Master Entrepreneur of the Ernst & Young Entrepreneur of the Year 2006 Malaysia.
  • 2007: Awarded 'The Brand Laureate' Brand Personality for his exemplary performance, dedication and contribution towards the aviation industry in Malaysia.
  • 2009: CAPA Legend Award (Aviation Hall of Fame).  
  • 2010: Honored with the title of ‘Officier of the Legion d’ Honneur’- highest rank honour by France government for non-French citizen by the government of France for outstanding contributions to the French aviation industry.
  • 2010: Prestigious Nikkei Asia Prize in Tokyo today- for contributions to the growth of Asia.
  • 2010: Prestigious Forbes Asia Businessman of the Year 2010. Fernandes is the first Malaysian and Southeast Asian to receive this award. 
  • 2011: Commander of the Order of the British Empire (CBE) honour by Her Majesty Queen Elizabeth II, for promoting commercial and educational links between the United Kingdom and Malaysia.
  • 2011: Named one of the world’s most creative people in business for 2011 by the New York based business magazine Fast Company. He is the only Malaysian and Southeast Asian on the list. In the following month, Fast Company’s magazine, online edition, FastCompany.com recognized Tony as one of the Top 10 Most Creative People on Twitter in the magazine’s June 2011 edition.
  • 2011: He was conferred the Darjah Panglima Setia Mahkota (PSM), which carries the title Tan Sri, by His Majesty the King, the Yang Di Pertuan Agong Tuanku Mizan Zainal Abidin. The Panglima Setia Mahkota is one of Malaysia’s highest honours and is only conferred by His Majesty the King, the Yang Di Pertuan Agong. The Award is given to distinguished citizens who have given meritorious service to the country.


Our Point of View

Type of Leader 

Mixed leadership style - People-oriented and Transnational

Leadership Qualities

Fernandes exhibit strong leadership traits of understanding, respectful, caring, friendly, empathy, encouraging and motivating. 

Having him to work closely with his employees by going out of his office, he strongly possess the traits of being understand, caring, friendly, motivating and empathy especially in the eye of his employees. With such action, he will be highly respected, as he is someone who is seen to be at the ground with his employee and doing the same job as them. 

His presence can motivate his employees as the employees can feel that they are not alone when they are working. Furthermore, Fernandes will be able to understand to his employee as he is able to know what issues and problems are his employee facing, hence encouraging them to strive for the better. 

Application in Hospitality Industry 

It can be seen in he is adopting a mixture in his management style in AirAsia. Fernandes is people-oriented as he is someone who is willing to step out of his office to the front line to be with his employees. I believe that by doing so, he can actually know the feeling of his employees and understand what kind of problems are they facing or what can be improved. In his employees’ eyes, his action is being supportive to them; hence this helps in increasing job satisfaction in his employees. In addition, Fernandes will be able to see everything clearly in his own eyes instead of waiting for reports or even knowing through customers complains. 

By stepping out of his office and have a chance to work with different employee directly at different positions (e.g. baggage-handler, cabin crew and check-in clerk), it makes communication between his employee and him easier as they are able to communicate face-to-face and directly. This minimise the problem of miscommunication. 

His way of presenting himself and his action is something that is worth learning from as it can help in building relationships between the hight management and subordinate. Good relationship is important in the hospitality industry as we deal with the human element most. With good relationship, it leads to happy employees and hence, happy customers.

References

What can Tony Fernandes of AirAsia teach US airline executives? (2009, March 20). Retrieved June 26, 2013, from SimpliFlying: http://simpliflying.com/2009/what-can-tony-fernandes-of-airasia-teach-us-airline-executives-servant-leadership/
The story of Tony Fernandes and AirAsia. (2013, February 21). Retrieved June 24, 2013, from TheEconomicTimes: http://economictimes.indiatimes.com/slideshows/people/the-story-of-tony-fernandes-and-airasia/slideshow/18609035.cms
Tony Fernandes-Wikipedia, the free encyclopedia. (2013, June 23). Retrieved June 24, 2013, from Wikipedia: http://en.wikipedia.org/wiki/Tony_Fernandes
AskAirAsia-Who are AirAsia's founders? (n.d.). Retrieved June 24, 2013, from AirAsia: http://www.airasia.com/ask/template.do;jsessionid=7E28F0506A646AE3FED0114CC3615ABF.tomcat3?id=396
The Turning Point-Tony Fernandes. (n.d.). Retrieved June 24, 2013, from EASYFIND.MY: http://www.easyfind.my/turning_point.php

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