SINGAPORE : The fascinating story of AirAsia’s rise to become one of the most admired carriers in the region is well known in Southeast Asia.
It began with the purchase of the bankrupt airline from Malaysian government conglomerate DRB- Hicom back in December 2001 by legendary and flamboyant founder, Tony Fernandes. It was a gutsy move so soon after the September 11 tragedy in America which devasted the airline industry. Although he ostensibly paid 1 Malaysian Ringgit (now 23 US cents) for the airline, he had to take on USD 11 million of debt and in order to finance the operations, he had to mortgage his house and plough his entire savings into the venture since no banks would lend him money as he had no prior experience running an airline. Before taking this big spin of the roulette wheel, he had a cushy high-flying job as a Warner Music executive which he joined as an accountant.
He and business partner and old friend, co-founder Kamarudin Meranun, took over two ageing Boeing 737-330 planes and 200 staff after the acquisition and were profitable within one year, flying 200,000 passengers in 2002.
