HEAD OF THE DAY
🛫 Fernandes’ Formula for Flying
The son of an Indian-Portuguese family, Tony Fernandes grew up in Malaysia. In 2011, through a series of twists, he met the country’s then–prime minister and offered to buy the government’s failing airline.
The deal: the government gets 1 ringgit (0.24 USD), Tony gets two planes, 40 employees, and 11 million USD in debt.
👀 What did Tony do with it?
One year after the takeover, AirAsia was debt-free and profitable.
The company went public in 2004, with shares oversubscribed by 130%.
After 9/11, when ticket prices dropped, he used the opportunity to hire experienced crews and convinced the government to sign open-skies agreements with neighboring countries.
👉🏻 Lesson learned: With a bit of madness, focus, and strategy, he turned AirAsia into Asia’s largest low-cost airline. Hats off, Tony. 🧢
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
