How the internet saved AirAsia: Tony Fernandes shares business lessons

Today the company has 220 planes, and carries 65 mn passengers annually, reports Tech in Asia

Last Updated : May 31 2017 | 11:40 AM IST

Nearly two decades ago, low-cost airlines barely existed. Today, they account for more than half of total capacity in Southeast Asia, allowing many people to fly for the first time. This boom can be traced back to one charismatic businessman: Anthony Fernandes, better known as Tony.

A former Warner Music executive, Fernandes bought then-ailing AirAsia from the Malaysian government for RM 1 in 2001 and turned it into Asia’s first low-cost airline.

From a company with only two jets, 250 employees, and millions of dollars in debt, he has flown AirAsia to new heights – today, it has 220 planes, employs 20,000 people, and carries 65 million passengers annually.

Leverage the power of the internet and new technology

Fernandes tried to raise money, applying for a mortgage and approaching banks for credit, but to no avail.

“The internet was our savior,” he said.

It let AirAsia sell tickets way in advance, giving it cash to roll until it grew big enough to get approved for a loan.

Look where no one else is looking

While AirAsia initially focused on conquering Malaysia – “you gotta be good to your own country first” – it saw a massive opportunity in the rest of Southeast Asia when no one else did. “Everyone was focused on India, China.. and I thought there’s 700 million people here, why doesn’t anyone want to do that?” Fernandes recalled.

Chances don’t come often. Grab them

Before entering the record and airline industries, Fernandes was an accountant at British tycoon Richard Branson’s companies. Branson owns Virgin Group, the parent firm of airline Virgin Atlantic – it was a sign of what was to come.

They started talking and after seeing something special in him, Branson gave him the job. Years later they were inseparable, having set up AirAsia X together.

This is an excerpt from the article published on Tech In Asia. You can read the full article here