AirAsia May Not Survive Tony Fernandes Politics

AirAsia May Not Survive Tony Fernandes Politics

AirAsia May Not Survive Tony Fernandes Politics

AirAsia Group Bhd looks set to sink well below the RM3 mark and may well trade in the RM1 to RM2 range long term, it is widely expected that links between the Company and ousted Malaysian Prime Minister will be investigated vigorously.

Najib has faced not only a major election defeat but he is under virtual house arrest as some of the worlds biggest and worst kept secrets come to light, corruptions scandals that run in to the billions and AirAsia CEO Tony Fernandes has put the Company directly in the middle of them all.

On the eve of Malaysia’s general election AirAsia Group chief executive officer Tony Fernandes came out in strong open support of Najib, he said said the airline started with two planes 16 years ago and had grown following the government’s policies and a leader who put the people first.

“We’ve been big believers in your policies.

“We would not be where we are today if not for your wisdom and vision.

“We respectfully hope for your kind consideration on how best to shape an ideal cost environment for low-cost airlines like AirAsia, not just to grow but thrive for the benefit of the nation,” he said.

Fernandes, despite his “I was wrong” PR stunts after Najib was beaten, has always been close to Najib.

When Najib was deputy prime minister he did Fernandes a huge “favour”, agreeing to lower passenger service charge (PSC) and that lead to AirAsia passenger traffic at LCCT jump 31%, from 5.8 million to 7.6. million, in 2006.

AirAsia, the leading and largest low-cost carrier in Asia, commended Prime Minister Najib Razak’s leadership and policies for helping and backing the airline all the way to become a world leader in the aviation sector. That “helping and backing” as Fenandes described it may well now become part of a corruption investigation.

Fernandes is already feeling the heat from his very close relationship with Najib, Malaysia’s aviation regulator on Tuesday denied it had ordered budget airline AirAsia to cancel extra flights to help voters return home for Malaysia’s recent election.

The Malaysian Aviation Commission (Mavcom) said it had lodged a police report against AirAsia Chief Executive Tony Fernandes, who said in a video posted in his Facebook page on Sunday the airline had been summoned by Mavcom before polling day and told to cancel all its additional flights, this was at the time a move to throw doubt on his very close friends defeat at the polls.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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