Another 5 years for Tony Fernandes at Capital A
Published on: Wednesday, April 24, 2024
By:
FMT, Annabelle Lawrence
Tony Fernandes decided to renew his contract with Capital A following requests from the board to stay on. (File pic)
PETALING JAYA: Capital A Bhd, the operator of budget airline group AirAsia, has extended the contract of its CEO Tony Fernandes for another five years, enabling him to continue driving the group’s future growth.
He was also appointed as a strategic adviser to the group’s airlines business, which is in the process of being merged with AirAsia X Bhd.
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Fernandes said he made the decision to renew his contract following requests from the board to stay on.
He added his immediate priority is to get Capital A out of its Practice Note 17 (PN17) status, to have a strong aviation group, and start growing again.
Capital A is currently undergoing a restructuring which includes merging its airlines business with AirAsia X and listing its branding business in the US.
“I am excited to embark on the journey of completing the full transformation of Capital A, to deliver tremendous value to its shareholders following the imminent disposal of its aviation business.
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“Over the next two years, investors and shareholders will witness the rise of four strong pillars of business, born out of the AirAsia Group,” he told reporters at a media briefing today.
On his plans for the next five years, Fernandes envisions Teleport, Move Digital, Capital A Aviation Services Group, and Capital A International evolving into separate publicly listed companies but sharing AirAsia’s DNA, characterised by low-cost, high efficiency, and a commitment to being independent and resilient market disruptors.
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Independent non-executive director Fam Lee Ee said Fernandes has shown an unparalleled ability to successfully transform Capital A to drive growth and deliver financial returns, earning him a reputation as “one of the world’s outstanding CEOs”.
“He has set Capital A on the right strategic path for ongoing value creation, and the board determined it is in the best interest of the shareholders to extend his tenure through the next five years,” he said.
AirAsia Aviation Group chairman Jamaludin Ibrahim said his appointment as a strategic adviser is based on his exceptional entrepreneurial track record and unparalleled expertise in the aviation industry.
“This is integral as we prepare AirAsia Aviation Group to become the leading regional aviation provider for the short, medium and longer-haul routes spanning Asia and beyond.
“In his new role, Tony will not only provide strategic oversight to AirAsia Aviation Group, including expansion and succession planning, he will also be the key conduit between Capital A and the aviation business ecosystem to ensure all mutual opportunities are leveraged for maximum benefit.
In addition, he said Fernandes will continue ongoing dialogue with key stakeholders including tourism industry players and the government, lessors, bankers and suppliers including Airbus and GE.
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