Would you buy what Richard Branson gave away: The Air Asia X IPO seems grossly over-priced

Tony Fernandes's AIr Asia X IPO is up and running after being talked about for the past three years. Media in Malaysia and elsewhere  have been happy to promote it, but are saying nothing of the fact that Richard Branson's Virgin Group sold out of his Air Asia X less than a year go, despite the impending IPO.

The following is presented to readers as a reference so that they may arrive at their own conclusions.

A) Fernandes's valuation of  Air Asia X, based on a reported IPO price of RM 1.30 per share, and    2,370,370,387 paid-up shares post-IPO :

(252/0.106)*1.3 = 3090.56603774 million 

(  Tan Sri Tony Fernandes will be on a roadshow to meet retail investors and remisiers across the country in early June for the AirAsia X (AAX) initial public offering, whose shares are likely to be priced at RM1.10 to RM1.30 a share. The airline is offering a larger retail portion than most companies in recent times, comprising 252 million shares or 10.6% of its enlarged share capital compared to 2%-5% offered by other companies to retail investors.Star,14 May 2013)

( Note: The prospectus states that the number of shares that will constitute  paid-up capital  post  IPO will be   2,370,370,387  , not 2, 377,358,491 as the report above suggests.S ee http://www.sc.com.my/eng/html/Prospectus/pdf/air_asia_x/4_details.pdf) 

B ) Richard Branson's valuation of the company, based on the selling price of his then  10% stake :

66/0.1= RM 660 million

(The Edge, 28 June 2012) 

592,592,600 new shares are to be issued at a price of RM1.30, increasing paid-up capital by RM 770,370,380. I shall leave it to readers to determine if that  injection of funds into the company could increase its value by almost RM 2.5 billion.

MALAYSIA PRESS-Virgin Atlantic to exit AirAsia X-The Edge

120 words

28 June 2012

10:36

Reuters News

LBA

English

(c) 2012 Reuters Limited

Richard Branson's Virgin Atlantic Airways Ltd is expected to

divest its 10 percent stake in AirAsia X Sdn Bhd to local

existing shareholders for more than $21 mln (66 million

ringgit).

This comes as Air Asia X, which easily qualifies as one

of the world's few long-haul budget carriers, prepares for

listing at the end of this year.

The Star Online > Business

Tuesday May 14, 2013

AirAsia X offers free tickets to any destination for initial public offering to retail investors

By B.K. SIDHU
bksidhu@thestar.com.my

AirAsia CEO, Tony Fernandes (R) pretends to kiss Virgin Group founder and chairman, Richard Branson during a press conference at the Low Cost Carrier Terminal (LCCT) in Sepang, 12 May. Virgin boss Sir Richard Branson dressed like an air hostess and served passengers on a flight after losing a bet to AirAsia chief Tony Fernandes over their Formula I motor racing teams. = EPA/AHMAD YUSNI

PETALING JAYA: Tan Sri Tony Fernandes will be on a roadshow to meet retail investors and remisiers across the country in early June for the AirAsia X (AAX) initial public offering, whose shares are likely to be priced at RM1.10 to RM1.30 a share.

The airline is offering a larger retail portion than most companies in recent times, comprising 252 million shares or 10.6% of its enlarged share capital compared to 2%-5% offered by other companies to retail investors.

And to lure retail investors to subscribe to the IPO, AAX is dangling a zero fare return air ticket to any destinations flown by the airline to investors that buy 10,000 IPO shares, and 3 tickets for those who buy 100,000 IPO shares as part of its shareholder benefit programme.

“It was my idea that we should meet retail investors because when I was young and was in England, I saw a lot of retail-based IPOs such as British Gas, British Telecoms and even that of my good friend Sir Richard Branson's Virgin group. It was for the public.

“Since we have benefited from Malaysians that fly with us, and rather than just the institutional investors benefiting from the IPO, we thought it was good to let Malaysians benefit by offering them free tickets if they subscribe to the shares,'' AAX director Fernandes told StarBiz yesterday.

While Fernandes said he would do his ceramah-style talks to retail investors in Malaysia, AAX CEO Azran Osman-Rani would meet institutional investors here and abroad.

The retail roadshow would be for a week and Fernandes (pic) claimed it was “something not done before. We will do the unconventional by talking directly to retail investors instead of sticking to just the traditional way of meeting only institutional funds.''

“Normally the public allocation is small, about 2% but we are offering a lot more shares for the public portion as we want them to be involved in the airline (as shareholders),'' he said.

He added that “we are always giving out free seats, so why not give them to those that subscribe to our shares. And if you keep the shares, you will get free tickets every year (for a maximum of three years).''

AAX, which is a sister company of AirAsia Bhd, plans to sell 790.12 million shares to raise US$300mil and and part of the funds will be used to finance new aircraft purchases. The airline is expected to take delivery of seven Airbus A330 this year.

AAX is headed for the Main Market of Bursa Malaysia and the listing is scheduled for July 10. It plans to start taking orders from institutional investors from June 10.

Fernandes declined to give any numbers, but analysts are valuing the company at RM1.50-RM1.70 a share. Those very bullish say it is about RM2 a share. Though analysts are looking at the IPO of RM1.30-RM1.40 a share, others think it could be lower at RM1.10 a share. But these are early days and the final pricing would be known later.

“AAX is a growth story. There is demand for budget air travel across the region and it wants to tap into that. It is tripling its fleet in three years. But of course like any airline, it is sensitive to exchange rates and fuel prices, and yields can come under pressure with excess demand but it is be able to keep a high and stable path with loads of about 80% in the medium term,'' said an analyst.

After the IPO, the major investors of AAX are Aero Ventures Sdn Bhd with 34.4%, AirAsia 13.7%, and both Orix Airline Holdings Ltd and Manara Malaysia Ltd with 6.4% each.

Apart from the retail portion of 10.6%, the others making up the 790 million shares are Miti bumiputra investors with 11% and local and foreign institutional funds with 11.7%.

AAX currently serves 14 destinations with 11 aircraft across Asia and it plans to expand further into North Asia and Australia.

CIMB Group Holdings Bhd, Malayan Banking Bhd, Credit Suisse Group AG and Morgan Stanley are joint global coordinators for the offering. Barclays Plc, BNP Paribas SA, Citigroup Inc, CLSA Ltd and HSBC Holdings Plc are helping manage the offering.

---

© 1995-2013 Star Publications (Malaysia) Bhd (Co No 10894-D)

Greg Combet attempts to justify Department of Innovation financial mismanagement in the same way he justifies Juanita Philip's travels.

As Minister For Climate Change,and Industry and Innovation Combet continues to display the same disregard for financial management that he did at Defense (see story below).


Combet was recently queried about a three year  contract  his   Department of Industry and Innovation  awarded late last year for the cleaning of the  National Measurement Institute and Australian Astronomical Organisation's new  offices and laboratories in  Ryde. The NMI's labs are highly secure given its responsibility for legal metrology. As well, it provides testing services to the Australian Federal Police and the Australian Sports Anti-Doping Authority (ASADA).

Regardless of the highly technical nature of the work involved, the contract was awarded a company with no prior experience  in the cleaning of laboratories. 
Within a month of the contract commencing Combet's Department requested a variation of that contract which resulted in a  reduction of  the cost to the supplier of approximately $ 105,000 to $ $ 120,000 over the term of the contract.
Given that the contract is valued at $ $847,142, the reduction represents an addition to the supplier's gross margin of 12%-14%. 
Given that cleaning contracts provide margins of between 2%-5% at best, the addition to the supplier's margin is highly significant.
Combet has been asked in emails why his Department and he did not seek a variation in contract value. The response received from both the Department and Combet's office read: 

·         Following a review of the cleaning services at the Department’s premises at 105 Delhi Rd, North Ryde, the Department agreed a variation of the cleaning contract with Solution Cleaning Services which varied the hours in which work was to be performed. The variation did not result in any change to the contract value. The contract was awarded after an open tender process.

·         According to the Commonwealth Procurement Rules, Agencies must report contracts and amendments on AusTender within 42 days of entering into (or amending) a contract if they are valued at or above the reporting threshold.

Combet and his Department have refused to say why a variation of the contract value had not been sought. Both have been determined to evade the question, and instead chosen to repeat the above , parrot-like.Combet has been reminded that the Guidelines he quotes are relevant to contract procurement and not management, but this has been met with no response. He has been informed that the relevant guidelines are those provided by the  Australian National Audit Office, but again, silence.

It does seem that this is Combet's  standard operating procedure when confronted with questions of financial mismanagement. As Steve Lewis reports in today's Daily Telegraph:

CLIMATE Change Minister Greg Combet took his ABC newsreader partner Juanita Phillips on a first-class visit to Europe, amid signs of an increase in global travel by Gillard Government frontbenchers.

The taxpayer-funded trip earlier this month included visits to Paris, Brussels and Berlin where Mr Combet - touted as a future Labor leader - delivered a keynote address to the "Towards a Global Carbon Market" conference.

Mr Combet said the trip met ministerial rules for travelling with spouses. These require the minister's partner to have an "official program of engagements".

He declined to confirm to News Limited what program Ms Phillips - who presents the ABC's flagship 7pm television news service in Sydney - undertook.

The minister also would not disclose why they flew first class.

The guidelines state "ministers and their spouses should travel business class" when travelling overseas, but they may have received a free upgrade.

A first-class airfare to Paris costs between $12,000-15,000 and the carbon footprint - around 5 tonnes of CO2 - is enough to power a small car for a year.

"Approval for Minister Combet's and Ms Phillips's overseas visit on official business was in accord with the guidelines relating to such visits," his spokesman said. "Any suggestion to the contrary would be wrong and misleading."

Prime Minister Julia Gillard is required to tick off on all overseas travel by her front bench. Asked about Mr Combet and Ms Phillips' trip, a spokesman said: "All overseas ministerial travel is approved in accordance with the guidelines."

http://www.dailytelegraph.com.au/news/national/combet-in-a-first-class-climate/story-fncvk70o-1226623872061

Readers will note that in both instances Combet attempts to hide behind "the Guidelines" , regardless of their relevance to the case.

END 

Greg Combet: The Chandler McLeod Defence Procurement debacle re-visited

On 7 May 2008 the then newly appointed  Parliamentary Secretary for Defence Procurement The Hon. Greg Combet MP announced " a review of Defence procurement and sustainment", to  be conducted by Mr David Mortimer AO.In making that announcement Combet said that he " would like the review to examine how DMO can continue to develop its commercial orientation and become more business-like in its operations."

On 2  July 2008 the  Minister for Defence Science and Personnel, Warren Snowdon MP, witnessed the signing of the new Australian Defence Force (ADF) Recruiting Services Contract with the ASX listed Chandler Macleod. The contract was  valued at up to $405 million over a period of five years.Mr Snowdon said that Chandler Macleod was selected by Defence following an extensive and competitive tender process conducted in accordance with Government Procurement Guidelines. Chandler replaced the much larger and better established Manpower Services Australia 

What was not disclosed then, and ever , was that Chandler was suffering cash flow and cash balance deficits. These problems were well known.

 In September 2008 , just 2 months after Snowdon's glowing endorsement, Samrtmoney described Chandler McLeod as a “struggling recruitment firm” that had been "thrown a rope" by investment bankers Mark Carnegie and John Wylie who had offered to buy a 19.9% share of the business

On 16 September 2009, the newly appointed Minister for Defence Materiel and Science, The Hon. Greg Combet MP,announced:

“Chandler Macleod Group (CMG) has announced it will seek, for commercial reasons, to terminate its contract with Defence for the provision of Australian Defence Force (ADF) recruiting services,” said Mr Combet. “Defence will, subject to a number of conditions being satisfied, agree to the termination of its contract with CMG.  Such conditions are, among other things, to ensure the continuity of ADF recruiting services.”

Despite his earlier stated objective of seeking a more "business like" approach in defence procurement practises, Combet has never provided any accounting for the failure in  choosing Chandler, despite its obvious financial problems.

That the company's financial problems were overlooked despite " an extensive and competitive tender process conducted in accordance with Government Procurement Guidelines" suggests that the Guidelines were either willfully or negligently ignored. 

Indeed  the Guidelines may have been  used to justify a poor decision That certainly seems to be the case in a contract that Combet now oversees in his new role as Minister For Climate Change, Industry And Innovation.

More To Come 

Thursday, June 11, 2009

Australian Defence Recruitment contract awarded to company with cash flow , cash balance deficit.

On 2 July 2008 The Minister for Defence Science and Personnel, Warren Snowdon MP, witnessed the signing of the new Australian Defence Force (ADF) Recruiting Services Contract with the ASX listed Chandler Macleod. The contract is valued at up to $405 million over the next five years.
Mr Snowdon said that Chandler Macleod was selected by Defence following an extensive and competitive tender process conducted in accordance with Government Procurement Guidelines.
Chandler replaced the much larger and better established Manpower Services Australia (http://www.manpower.com.au/about-manpower/about-manpower.aspx).


Mr Snowdon’s assertion that “Chandler Macleod was selected by Defence following an extensive and competitive tender process conducted in accordance with Government Procurement Guidelines” needs to be seen in light of the following:

In March this year Chandler announced that it had suffered a pre-tax loss of AUD 2,731,000 but a profit after tax of AUD 267,000 for the half-year ended December 31 2008.
For the same period in 2007 it reported a pre-tax profit of AUD 6,994,000 but loss after tax of AUD 2,291,000 .


For the year ended 31 December 2008 the company reported a consolidated profit of AUD 2,744,000 but negative operating cash flow of AUD 99,000. Cash and cash equivalents at the end of the 2008 financial year were in deficit to the sum of AUD 1,408,000.


(see http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ric=CMG.AX)


Not surprising then that in September 2008 , just 2 months after Snowdon's glowing endorsement, Samrtmoney described Chandler McLeod as a “struggling recruitment firm” that had been "thrown a rope" by investment bankers Mark Carnegie and John Wylie who had offered to buy a 19.9% share of the business.
http://www.smartcompany.com.au/leadership/chandler-macleod-gets-10.9-million-from-lazard-carnegie-wylie.html

AK vs AK in the Australian pay TV space?

First, there was Fetch TV, into which AK's Astro and other companies are investing: 

Scott Lorson was appointed in September 2009 as the chief executive officer of FetchTV Pty Ltd, a start-up wholesaler that has designed a pay TV platform business for Internet service providers to deliver free and pay TV channels, movies on demand, and other interactive content to their broadband customers.

FetchTV is 55 percent owned by management including the executive director, Simon Cathcart, one of the two Australian founders, and 45 percent by Astro Holdings, a Malaysian media and communications investment company.

Freelance communications journalist, Liz Fell, interviewed Lorson for the Telecommunications Journal of Australia( TJA) in mid-October (2011)  at the FetchTV offices in Milsons Point, NSW.

TJA: And at the top of UT is Tatparanandam Ananda Krishnan, known as TAK these days I believe?

Lorson: Yes, he’s often referred to as TAK.

TJA: I met him many years ago when he was at the university here and I believe he now has a horse stud in the Hunter Valley. Have you met or visited him?

Larson: Off the record...

TJA: There’s no off the record in these interviews! Sorry.

Lorson: Well, these are very private individuals so I prefer not to speak publicly about them. I think the group maintains very strong affinity to the Australian market. I just prefer not to speak publicly.

TJA: I recently saw a very public photo of Krish at the annual Allen & Company media and tech executive conference in Sun Valley. Did you go to that?

Lorson: No.

TJA: However, is it right to say the sister companies are funding Fetch TV’s development of the pay TV customer equipment?

Lorson: That’s right. It’s fair to say the research and development of FetchTV Australia will be amortised across our various markets as we strike partnerships with our sister companies.

http://tja.org.au/index.php/tja/article/view/272/473

And then, there is this:

Monday March 4, 2013

Astro-On-The-Go launched in Australia

By KENNETH CHAW
entertainment@thestar.com.my

Rohana giving a speech during the launch of the Astro- On-The-Go International in Melbourne.

MELBOURNE: Malaysians living abroad need not feel homesick anymore with the launch of Astro-On-The-Go International here.

The service enables Malaysians to tune in to their favourite local movies, dramas, live sports and news coverage via smartphones, tablets or laptops from anywhere in the world.

Astro CEO Datuk Rohana Rozhan said its customers would be able to access the service wherever they go in the world.

“The boundaries of geography shouldn't apply with technology. As such, we are making local content available to Malaysians living abroad ... making Malaysian culture, music and content internationally accessible,” she said.

Rohana said two homegrown channels Astro Awani and Astro Arena are available for a free preview.

Azrena Abdul Karim, 38, who is currently pursuing a PhD in Wood Science at the University of Melbourne, is looking forward to catching up with her favourite local programmes.

“When I feel homesick, I usually search for old Malay movies on YouTube. Now, I can watch Adam dan Hawa,” she said.

Astro-On-The Go was launched in Malaysia last May and has received over 500,000 views and 400,000 app downloads.

For more information or to register, visit astroonthego.com.

http://thestar.com.my/news/story.asp?file=/2013/3/4/nation/20130304074627&sec=nation

Now every STAR journalist needs to register an interest in AIrAsia stock

THE STAR has announced that AirAsia CEO and major shareholder Tony Fernandes has been appointed a director of its publisher, Star Publications (M) Bhd. The Star has been a prominent publicist  for AirAsia, publishing commentaries usually in favour of AirAsia.
Given the appointment Fernandes becomes part of the mind that directs the company and the paper. This is THE STAR, a Malaysian paper, owned by the MCA ,a prominent  member of the ruling Barisan Nasional, so arguments of editorial independence can be safely put aside.

Consequently, it does appear that  each and every journalist at THE STAR, managing editor Wong Chun Wai downwards, would need, in accordance with the law as stipulated in the Securities Industry Act 1980, tto enter into the "register in the prescribed
form ... the securities in which he/she  has an interest" .
The  relevant provisions  are reproduced below:


PART V
RECORDS
29. Application of this Part.
(1) This Part applies to a person who is–
(g) a financial journalist; or



30. Register of Securities.
(1) A person to whom this Part applies shall maintain a register in the prescribed
form of the securities in which he has an interest.


31. Notice of particulars to Commission.
(1) A person to whom this Part applies shall give notice to the Commission in the
prescribed form containing such particulars as are prescribed including the place
at which he will keep the register of his interest in securities.
[Am. Act A847:s.11; Am. Act A943:s.30]


(5) Any person who fails or neglects to give notice as required by this section commits
an offence.

4. Interest in Securities.




(3) A person shall be deemed to have an interest in a security where a body corporate
has an interest in a security and–

(c) that person, or the associates of that person or that person and his associates
are entitled to exercise or control the exercise of not less than 15% of the
votes attached to the voting shares in the body corporate


4) For the purposes of paragraph (3)(c), a person is an associate of another person if
the first-mentioned person is–


(b) a person in accordance with whose directions, instructions or wishes that
other person is accustomed or is under an obligation, whether formal or
informal, to act in relation to the security referred to in subsection (3);
(c) a person who is accustomed or is under an obligation, whether formal or
informal, to act in accordance with the directions, instructions or wishes of
that other person in relation to that security;


(9) An interest in a security shall not be disregarded by reason only of–
(a) its remoteness;





http://www.sc.com.my/eng/html/resources/guidelines/SIA2005.pdf

Of course, none of the above  would apply if the THE STAR undertakes to never ever publish any commentary whatsoever about AirAsia, but I doubt that.
END

AirAsia's QPR sponsorship-Implications for the AirAsia board,breaches of the Companies Act '65

First , Tony Fernandes aka Choirboy, CEO of AirAsia and  owner Queens Park Rangers (QPR) in his own words:

"If worse comes to worse, I'm sure I can persuade Air Asia or Malaysian Airlines to come on board and sponsor us (QPR)."

http://www.marketingmagazine.co.uk/news/1085695/Fernandes-use-Air-Asia-fallback-shirt-sponsor/

Now according to Malaysia's Companies Act 1965

Section 131A of the Companies Act 1965-Interested director not to participate or vote

S131A(1) provides that:

  ‘Subject to Section 131, a director of a company who is in any way, whether directly or indirectly, interested in a contract entered into or proposed to be entered into by the company… shall be counted only to make a quorum at the board meeting but shall not participate in any discussion while the contract or proposed contract is being considered at the board meeting and shall not vote on the contract or proposed contract
 ‘Shall not participate’ has been defined in PP v Dato Haji Mohamed Muslim bin Haji Othman [1983] 1 MLJ 245 where   Hashim Yeop A Sani J held that even the  physical presence at the EXCO meeting was sufficient for him to be regarded to have used his public position for his advantage. 

 In this case, regardless of whether  Tony was present at BOD meetings, he  has  said, and the facts subsequently prove that  he "can persuade Air Asia ....... to come on board and sponsor (QPR)."

It does appear that Choirboy is in breach of Section 131 (A), but the story does not end there. 

The rest of the AA board also have a duty to ensure that they voted independently and in the best interest of AA. It is going to be interesting to see how they are going to do so when Choirboy has so openly said  he "can persuade Air Asia ....... to come on board and sponsor (QPR)."

If they can't :

—S131(8)

  Penalty:

  ‘Imprisonment for seven years or one hundred and fifty thousand ringgit or both’

``````````````````````````````````````````````````````````````````````````````

THE AIRASIA BOD

DATO’ ABDEL AZIZ @ ABDUL AZIZ BIN ABU BAKAR was appointed Non-Executive Director of the Company on 20 April 2005 and on 16 June 2008, he was re-designated to Non-Executive Chairman. He is also the Chairman of the Nomination Committee. Prior to this, he served as an Alternate Director of the Company to Dato’ Pahamin Ab. Rajab since 11 October 2004. He also served earlier as a Director of the Company from 12 December 2001 to 11 October 2004. He is currently the Non-Executive Chairman of VDSL Network Sdn Bhd. He is also the Chairman of PAIMM (Academy of Malaysian Music Industry Association) and PRISM (Performance and Artists Rights Malaysia Sdn. Bhd.), a music performers collection body. From 1981 to 1983 he was Executive Director of Showmasters (M) Sdn Bhd, an artiste management and concert promotion company.

He subsequently joined BMG Music and was General Manager from 1989 to 1997 and, Managing Director from 1997 to 1999. He received a Diploma in Agriculture from Universiti Pertanian Malaysia in 1975, his BSc in Agriculture Business from Louisiana State University, USA in 1978, and an MBA from the University of Dallas, USA in 1980.

TAN SRI DR. TONY FERNANDES was appointed Group Chief Executive Officer of the Company in December 2001. He is also a member of the Employee Share Option Committee of the Board. Prior to joining the Company, he was Financial Controller at Virgin Communications London from 1987 to 1989, Senior Financial Analyst at Warner Music International London from 1989 to 1992, Managing Director at Warner Director at Warner Music Malaysia, from 1992 to 1996, Regional Managing Director, ASEAN from August 1996 to December 1999 and Vice President, ASEAN from December 1999 to July 2001 at Warner Music South East Asia. He was actively involved in developing the Malaysian music industry and received the title ‘Setia Mahkota Selangor’ from DYMM Sultan Selangor Sultan Salahuddin Abdul Aziz Shah in 1999 in recognition of his contributions and was also the recipient of the ‘Recording Industry Person of the Year 1997’ by the Recording Industry Association of Malaysia.

A highly decorated man, he has received numerous awards from the industry observers and international press alike. Among the awards are, ‘Malaysia CEO of the year 2003’ by American Express and the Business Times, ‘Emerging Entrepreneur of the Year – Malaysia 2003’ at the Ernst & Young Entrepreneur of the Year Awards in 2004, ‘Airline Business Strategy Award 2005 and Low Cost Leadership’ by Airline Business and he was also named Asia Pacific Aviation Executive by the Centre for Asia Pacific Aviation (CAPA) for the year 2004 and 2005.
In July 2005, he was conferred the Darjah Datuk Paduka Tuanku Ja’afar (DPTJ) which carries the title Dato’ by the Negeri Sembilan’s Yang DiPertuan Besar Tuanku Ja’afar Tuanku Abdul Rahman in conjunction with His Majesty’s 83rd birthday celebrations in recognition of his services rendered to the betterment of the nation and community. In 2006, he was named the Master Entrepreneur of the Ernst & Young Entrepreneur of the Year 2006 Malaysia. He also bagged ‘The Brand Laureate’ Brand Personality for his exemplary performance, dedication and contribution towards the aviation industry in Malaysia in the same year and also in 2007. He was admitted as an Associate Member of the Association of Chartered Certified Accountants in 1991 and became a Fellow Member in 1996.

In 2007, he was conferred yet another title, the Darjah Sultan Ahmad Shah Pahang (DSAP) which carries the title Dato’ by the Pahang’s KDYMM Sultan Haji Ahmad Shah ibni Almarhum Sultan Sir Abu Bakar Riayatuddin Al- Muadzam Shahas recognition of his services rendered to the betterment of the nation and community. In 2008, he was bestowed with another title by the Sultan, the Darjah Kebesaran Sultan Ahmad Shah Pahang Yang Amat Di Mulia which carries the title Dato’ Sri.
In 2009, he was conferred the ‘CAPA Legend Award 2009 (Aviation Hall of Fame)’ in recognition of his influential actions for directly shaping the way the aviation industry has evolved, and ‘Airline CEO of the Year Award for 2009’ from Jane’s Transport Finance, for successfully leading and growing AirAsia into the world’s best low-cost airline and Asia’s largest.
In March 2010, he received an Honorary Doctorate of Business Innovation from Universiti Teknologi Malaysia (UTM), a recognition for his role in changing the face of aviation and benefitting travelers and economies locally and in the region, and the following month the title of ‘Officier of the Legion d’ Honneur’ by the government of France for his outstanding contributions to the aviation industry. The Legion d’ Honneur -- the highest rank of honour that the government of France can award to a non-French citizen -- was established by Napoleon Bonaparte in 1802 to recognize outstanding service to France.
In April 2010, he was honoured with the title of ‘Officer of the Legion d’ Honneur’ by the government of France for outstanding contributions to the French aviation industry. It is the highest rank of honour that the government of France can award to a non-French citizen.
The following month, he received the prestigious Nikkei Asia Prize in Tokyo for his contributions to the growth of Asia. The prize, given by leading Japanese newspaper publisher Nikkei Inc., recognised his role in democratising travel in Asia.
Fernandes also received the prestigious Forbes Asia Businessman of the Year 2010 award. He is the first Malaysian and Southeast Asian to receive the award.
In February 2011, he was awarded the Commander of the Order of the British Empire (CBE) honour by Her Majesty Queen Elizabeth II. The award was conferred on him for services in promoting commercial and educational links between the United Kingdom and Malaysia.
In April 2011, Tony was conferred Darjah Seri Paduka Mahkota Perak (S.P.M.P) which carries the title Dato’ Seri at the Istana Iskandariah in Kuala Kangsar.

DATO’ KAMARUDIN BIN MERANUN was appointed Director of the Company on 12 December 2001. In January 2004, he was appointed Executive Director and on 8 December 2005, he was re-designated to Group Deputy Chief Executive Officer. He is also the Chairman of the Employee Share Option Scheme Committee of the Board. Prior to joining the Company, he worked in Arab-Malaysian Merchant Bank from 1988 to 1993 as a Portfolio Manager, managing both institutional and high net-worth individual clients’ investment funds. In 1994, he was appointed Executive Director of Innosabah Capital Management Sdn Bhd, a subsidiary of Innosabah Securities Sdn Bhd. He subsequently acquired the shares of its joint venture partner of Innosabah Capital Management Sdn Bhd, which was later renamed Intrinsic Capital Management Sdn Bhd.

He received a Diploma in Actuarial Science from University Technology MARA (UiTM) and was named the “Best Actuarial Student” by the Life Insurance Institute of Malaysia in 1983. He received a B.Sc. degree with Distinction (Magna Cum Laude) majoring in Finance in 1986, and an MBA in 1987 from Central Michigan University.

CONOR MC CARTHY was appointed Non-Executive Director of the Company on 21 June 2004. He heads the Safety Review Board of the Company. He is Managing Director of PlaneConsult, a leading aviation business solutions provider which he set up in 2000 which specialises in advising and establishing Low Cost Carriers Prior to establishing PlaneConsult, Conor was the Director of Group Operations at Ryanair from 1996 to 2000. Before joining Ryanair, he was the CEO of Aer Lingus Commuter. Prior to that, he was General Manager/SVP for Aer Lingus in the Marketing and Strategic Planning divisions.

Independent Directors

DATO’ LEONG KHEE SEONG was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is Chairman of the Audit Committee and a member of the Remuneration Committee of the Board. He was Deputy Minister of Primary Industries from 1974 to 1978, Minister of Primary Industries from 1978 to 1986 and a Member of Parliament from 1974 to 1990. Prior to this, he was a substantial shareholder of his family’s private limited companies, which were principally involved in general trading. He was the Chairman of the General Agreement on Tariffs and Trade’s Negotiating Committee on Tropical Products (1986 to 1990) and was the Chairman of the Group of 14 on ASEAN Economic Cooperation and Integration (1986 to 1987). He graduated with a degree in Chemical Engineering in 1964 from University of New South Wales, Australia. He is an Independent Non-Executive Director of TSH Resources Berhad.

DATO’ FAM LEE EE was appointed Independent Non-Executive Director of the Company on 8 October 2004. He is also a member of the Audit, Remuneration and Nomination Committees of the Board. He received his BA (Hons) from the University of Malaya in 1986 and an LLB (Hons) from the University of Liverpool, England in 1989. He obtained his Certificate of Legal Practice in 1990 and has been practising law since 1991 and currently is the senior partner at Messrs YF Chun, Fam & Yeo. He also serves as a Director of M-Mode Berhad.

DATO’ MOHAMED KHADAR BIN MERICAN was appointed Independent Non-Executive Director of the Company on 10 September 2007. He is also a member of the Safety Review Board and Audit Committee of the Board. He has had more than 20 years’ experience in financial and general management. He has been an auditor and a management consultant with an international accounting firm, before joining a financial services group in 1986. Between 1988 and April, 2003, Dato’ Khadar held several senior management positions in Pernas International Holdings Berhad (now known as Tradewinds Corporation Berhad), a company listed on the Main Board of Bursa Malaysia Securities Berhad, including as President and Chief Operating Officer.

He is a member of both the Institute of Chartered Accountants in England and Wales and the Malaysian Institute of Accountants. He is also presently a Director of Rashid Hussain Berhad, RHB Capital Berhad, RHB Investment Bank Berhad (formerly known as RHB Sakura Merchant Bankers Berhad) and ASTRO All Asia Networks PLC.

MOHD OMAR BIN MUSTAPHA, was appointed as Independent Non-Executive Director of the Company on 16 March 2011.He co-founded Ethos & Company in June 2002. He led Ethos as Managing Partner from 2002 to 2010, and became Chairman of the firm in January 2011. As Managing Partner he provided the overall stewardship for the partnership group and associates, and guides the thought leadership and client development agenda of the firm. In 2004, he took a sabbatical from Ethos to serve as Special Assistant to Deputy Prime Minister Dato’ Sri Najib Tun Razak for economic, corporate sector and foreign policy issues. He re-joined Ethos as Managing Partner in 2006 upon the untimely passing of his partner and co-founder Dr. Liew Boon Horng. In 2007, he co-founded Ethos Capital, a Malaysian based private equity firm focused on providing equity capital and management support to growth companies in Southeast Asia. Ethos Capital’s maiden fund is in excess of RM200 million.

He has significant experience in the Malaysian and international corporate and government sectors, where he has engaged with and advised top‐level decision‐makers on issues of business strategy, public policy and regulatory engagement, corporate governance and leadership, performance and talent management. Prior to establishing Ethos, he was a consultant with McKinsey & Company based in Kuala Lumpur and London. He has served multinational clients in the telecoms, energy, media, retail, banking and government sectors in Southeast Asia, the Middle East and Western Europe. He started his career as a Corporate Planning Manager with Petronas and subsequently as a Vice President with the Multimedia Development Corporation.

He is a member of the National Economic Council chaired by the Prime Minister. He was elected by the World Economic Forum as a 2007 Young Global Leader and is a 2008 Eisenhower Fellow. He is a founder of the Young Leaders Programme of the World Islamic Economic Forum.

He graduated from Oxford University where he obtained his BA (Hons) and MA degrees in Politics, Philosophy and Economics. He has attended advanced leadership studies at the Harvard Kennedy School of Government.

He also serves as an independent non-executive director on the boards of Petroliam Nasional Berhad 

Prime Minister Marina Mahathir said........

No one paid me to say this, and no one asked me to say it. However, it now all seems so simple. Malaysia is facing a battle of the women, or at least led by the women. UMNO , and the BN , if they are to survive as a force in Malaysian politics, may have to come up with their own champion, a  cross between Corrie Acquino  and  Megawati Sukarnoputri, if they are to remain relevant to Malaysian politics.

 In the Pakatan corner we have Nurul Izzah, who is able to draw the crowds and is spoken of by some (or is that many?) as the logical replacement for her scandal tainted father, Anwar Ibrahim.Her age counts against her, but she is Malay and satisfies the convention that the prime minister be bumiputera. Anwar himself must realise that he longer draws the crowds,and in any case carries too much baggage ,not the least from his UMNO antecedents.

 Bersih 2, and now 3, has proven that it is no longer Anwar that draws the crowds ; larger each time , and always summoned by Ambiga Sreenivasan. The crowds are not necessarily drawn to her but she has certainly provided the leadership.Ordinarily she would be spoken of as a potential prime minister, somewhat like say Corrie Acquino was after she lead the masses against Marcos, but the reality is that the Malay majority would never accept a non-Malay prime minister. Otherwise, she is of the right old age, and is from the legal fraternity that has been  traditional source of politicians.

Nevertheless, Ambiga seems to be in UMNO's cross-hairs. Might then UMNO strategists be wondering whether they too should start thinking of a woman leader, and do in Malaysia what the Thakshin family has done in Thailand to salvage its power and influence, substituting sister Yingluck for exiled brother Thaksin Shinawatra? If so, there is only one choice  even if she is not yet an MP,  and that would be Marina Mahathir.

In Marina one can see a lot of  what Ambiga has stood for and has demonstrated popular support While much older than Nurul Izzah she  has demonstrated at least an empathy with  the issues , norms and values of  younger Bumiputeras. As well she seems to identify well with younger Chinese and Indians. She is  from all accounts her father's daughter even if her public musings seem at odds with his.Both appear to share boundless energy , some secret fountain of youth, and a belief in themselves which allows them to depart from convention when required.Despite criticism of him and his tenure as prime minister Tun Mahathir remains popular and influential, and those hankering back to the roaring 90s when he was PM could see in Marina a clone that could make it all happen again.One suspects that younger brother Mukhriz would agree, even it means that his ambition (if any) of becoming prime minister would be curtailed.


Readers might think the above simplistic given the existing hierarchies within UMNO. However, when the prospect of  a hung parliament is being openly discussed, and with Idris Jala insisting regardless that  "and already" he has made a difference, one suspects that within UMNO there is the realization that drastic action is required.
Is it then so  unlikely that The Star's managing editor, Wong Chun Wai, might in the near future ,report with the fervour hitherto applied to spiking her stories, be reporting " Prime Minister Marina Mahathir said.......".
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