Q&A: Blogs getting 'sick and twisted'

Tony Fernandes in the first of a two-part Malaysiakini’s interview with the AirAsia boss talks about the attacks - at times personal - that have been leveled against him in cyberspace.

Malaysiakini: Other than the proposed KLIA East @ Labu airport, another issue you should be worried about is the impending change of leadership in about two months’ time. There’s talk that you’re close to the present prime minister and Khairy Jamaluddin, his son-in-law. They (the new leadership) could easily, in two months’ time, mothball the project.

Tony Fernandes: One of the main things that has been talked about is AirAsia’s purported closeness (with certain individuals).

I have a hotel business, an aviation business, and a financial portal. None of these really require government approval as far as the hotel and financial portal are concerned. I can get on and do my business. I go and buy my building, I have to get planning permission and approval, off we go.

In my business here (AirAsia), I need routes. In most countries, routes are fairly liberalised. Send your application over and it’s either a yes or no. Most of it is open skies (in other countries). Here, you need to get approval from both governments. And the national airlines (MAS) has an enormous amount of clout.

When AirAsia started, we had two major handicaps. We were competing against a subsidised airline that receives subsidies on their domestic (routes) which range from RM400 million to RM600 million a year. It’s very hard to compete. In the early days, (the global) oil price was US$30, so it was okay. But (the) oil (price) began to creep up. I fought for a level playing-field - remove the domestic subsidies.

In August, it was removed. We had gone to see everybody and all cabinet members and a lot of MPs. We did briefing sessions with MPs to show our situation. Part of that deal was that they gave us the rural air services, which was not (what) we wanted.

I don’t see how anyone can say that (removal of subsidies) is wrong for the country. Taxpayers (now) don’t subsidise MAS. In fact, MAS has become profitable since the subsidy was removed and is competing with us on everything. That’s fair.

The second thing is routes. We lobby (for them just) as MAS lobbies to stop us from getting them. I don’t sit in at post-cabinet meetings. You see in The Edge that the deputy secretary-general (planning) of Ministry of Transport (Long See Wool ) has been appointed to (airport operator) Malaysian Airports Holdings Board (MAHB).

How can that be fair? You know what I mean. MAHB should be made up of independent people. How can anyone be objective when they sit on MAHB’s board and they don’t hear AirAsia’s point of view? This what we’ve been continually fighting (for).

So what have we got from these purported links (Prime Minister Abdullah Ahmad Badawi and Khairy)? We’ve got routes, which I think we deserve and it took me seven years to get Kuala Lumpur-Singapore. I still don’t have Penang-Singapore at this point. I’m still fighting for Myanmar, which MAS objected to us getting. I’m still fighting for more rights in Indonesia, (which) MAS objected to us getting.

Yet, what are we trying to do? Bring in tourists, move people around at cheaper costs. It’s good for the country. There were no low fares when AirAsia was not around. MAS didn’t have these super-cheap fares. If you look at it, where we don’t fly, they don’t have super-cheap fares.

All we got - and we had to lobby everyone for it in the cabinet - was the removal of MAS subsidies. We also asked for routes. I’m still lobbying for routes. Tell me something else we’ve got from this purported relationship.

The biggest mistake of my life, and to be fair to this guy, is (when) Khairy Jamaluddin’s team came to propose sponsoring the MyTeam (football project). Honestly, it was the biggest mistake of my life.

How fantastic - taking guys from the rubber estates, from kampungs, from new villages - to London to play Manchester United. This airline is all about making dreams come true. We’ve also sponsored Manchester United. How great!

But then it backfired because suddenly, it was rumoured that Khairy and the ‘Fourth Floor’ now own 40 percent of AirAsia. Come on!

So, is that true or false?

I hate to sound like a politician, but put a Bible, Quran, whatever, in front of me and I’ll swear on it and say no! I only did the MyTeam thing with him (Khairy). Malaysia has become a bit sick and twisted, if you read some of the blogs.

He doesn’t. I honestly feel sorry for the guy. If he benefited from the MyTeam thing and there are criticisms, fair enough. There’s a whole lot of confusion when it involves Khairy, the old guys, the new guys, the in-between guys, and we just got caught (into it). It’s easy to link us.

Me and (the other AirAsia directors) Kamarudin Meranun initially (owned) 80 percent of this airlines along it, Datuk Pahamin (A Rejab), Abdul Aziz Abu Bakar and Conor (McCarthy).

Over the years, we’ve gone public. Me, Kamarudin, Aziz Bakar, and Coner now own about 32 percent of the company. The rest is probably floated. Our value, our stock, has gone down (laughs).

I’ve tried to buy the company back - that’s no secret - because I think we’re undervalued. That’s my confidence in it. So, if you take me, Kamarudin and then you add in what the Fourth Floor is supposed to own and what Khairy is supposed to own, there’s not much left for us.

Are you still pursuing the (privatisation) option?

We can’t for six months now, but ... I put my money where my mouth is.

If someone were to look at it rationally and say that Khairy Jamaluddin and all the Fourth Floor guys are shareholders, what has AirAsia got (in return)? If you say AirAsia operates exclusively on all its routes and MAS cannot operate on them, (that’s a) dodgy (thing to say).

There are so many dodgy deals and concessions out there, but none of them get hammered. But after this (AirAsia’s sponsorship of MyTeam) had gone public, we get hammered.

If I get all the government business, and I’m the only person that can fly civil servants or for National Service (participants), okay. Under DRB-Hicom, we had the haj contract, which was very valuable to us, and I did it for two years. MAS took that away (in 2003). They undercut us, we couldn’t match it, and it was gone.

But that’s fair competition. No complaints. But you say I’m a crony? If so, I should have been able, with all my powerful friends, to keep the haj contract.

The Ministry of Defence contract (with AirAsia when it was under DRB-Hicom to transport soldiers between Sabah, Sarawak and peninsula), we did it for seven years and gave fantastic service to the Army.

Look who’s minister of defence (Prime Minister Abdullah) now. Yet, we lost 50 percent of the defence contract to MAS. They say we’re so powerful. It’s a big contract. (If we were so privileged) MAS wouldn’t be going around saying, ‘Hey, we won the contract, 50 percent is back (with us)’... So there’s nothing that we’ve got!

Why then are you getting all this flack?

It’s guilt by association. I’m ‘collateral damage’, aren’t I?

Perhaps you’re too successful?

Maybe. People say that. I don’t believe that’s the case. There may be some people who may be jealous, but I don’t believe that. I walk around the streets now, and everyone wants to take photographs, everyone wants (me to) sign caps. People want to be like us. We make dreams come true.

There’s a vicious community of bloggers out there who just spout hate. I’ve tried to engage them. I’ve even invited them here. Look at (Wangsa Maju MP) Wee Choo Keong. He’s a member of parliament. He wants such an airline to fail?

We’re a Malaysian company with 6,000 people. I’ve asked him to come and see us so many times. If you’re objective, you’d come in to see us.

In your experience with government-linked companies (GLCs), with all the monopoly that they have, is it stifling private enterprise?

I work with GLCs, and they all can’t be painted with the same broad brush, but when you compete directly with them, it’s tough. How can anyone say (state investment firm) Khazanah Bhd is objective when they own MAS and MAHB?

None of the bloggers have picked that up. They’re willing to bash me and use racial slurs.

There’s one good thing, though, and that’s they’ve called me fat. So now I’m motivated to be thin (laughs). When I read the blogs, I see, ‘Hey Fatso!’ But I’m going to show you I can be thin! (More laughter)

Have you looked at our blog? There are about 1,100 comments.

And most of those have been positive...

And you go look at the Rocky's Bru blog and there are 40 comments… and maybe 30 by vested interest parties. I want to just define the criticism. It’s a myth that (the opposition to AirAsia) is all over the place.

You’ve got a pretty formidable detractor in the form of (former prime minister) Mahathir (Mohamad).

Dr Mahathir gave us the (airline) licence and we owe him a lot for giving us the licence. I don't think he detracts against us, I mean if you read it (his Cet Det blog), he detracts against the (KLIA East @ Labu) airport plan. But he hasn’t heard all sides of the story. I don’t have access to him and he doesn’t see our problems. I dare say he has not even been to the LCCT. And so maybe when he’s given a chance to see…

In his blog, has congratulated AirAsia for having received such high numbers of passengers. He congratulated on our presentation (on Labu). He still has questions, and his and a lot of other people’s views are ‘why can’t it be built here (KLIA)?’ And we're trying to argue that the 'why', (and) articulate it.

It’s not our first desire to move out of here. Our first desire is to be in (Sultan Abdul Aziz Shah Airport in) Subang. And in fact, even Dr Mahathir asked, ‘Why can’t we be in Subang?’ I would love to be in Subang.

Tun (Mahathir) is very learned, he gave us the chance - we have built this airline. Hopefully we will be given a chance to show our side of the story.

Are you willing to meet him, talk to him?

I’m willing to meet all the bloggers (to address their concerns with KLIA East @ Labu). (Laughs) I’m definitely willing to meet Tun.

Part 1
My 'biggest mistake' was to sponsor Khairy's MyTeam
&A: Blogs getting 'sick and twisted'

Part 2
AirAsia seeks 'secession to form own republic'
Q&A: Fernandez pours out his frustrations

VIDEOS l Part 1 (10 mins) l Part 2 (14 mins)