The Courage of a Leader: Tony Fernandes and the Birth of AirAsia

In 2001, Tony Fernandes took a monumental step that would reshape the aviation landscape in Malaysia. After signing the agreement to purchase AirAsia from DRB-Hicom, the first thing Tony did was meet with the existing AirAsia employees at the DRB-Hicom office. Despite his extensive experience in making presentations at Warner Music, this time was different – he was about to speak about aviation, airplanes, and passengers, a field entirely foreign to him.

Tony felt nervous as he entered the meeting room. He had always spoken about artists and music bands, but now he needed to present a business model about low-cost flights, something completely new to him. Yet, he was also excited, amazed by his own courage to venture into entrepreneurship.

As Tony walked into the room, he was greeted by about 40 original AirAsia staff members, including engineers, cabin crew, pilots, and ground workers. They all looked at Tony with skepticism – here was a former music executive with a seemingly crazy idea to offer low-cost flights in Malaysia.

Tony started explaining his business model. The room was silent. He couldn’t tell if they were quiet out of respect or disbelief. When he finished, an engineer raised his hand and asked, “Malaysians expect service and amenities. Will this low-cost model succeed?”

Tony replied, “Look, if we set our fares low enough, I believe it will succeed. We can still offer essential services and set rules that customers need to follow.” He elaborated, “We’re not targeting those who typically fly with MAS or Singapore Airlines. We want to create a new market – for those who’ve never had the opportunity to fly before.”

The room was silent for a moment. Then, a cabin crew member voiced their thoughts, “This is a brilliant idea. I believe we will become bigger than MAS one day. Just seeing your energy and passion in this presentation is enough to inspire us. We haven’t seen this kind of attitude from upper management in over six years. I am proud to be a part of this effort.”

One critical aspect of leadership is convincing your team of your ideas before selling them to the outside world. If your team isn’t convinced, the idea won’t go anywhere because they are the ones who will drive it. Tony’s strong leadership was one of the reasons AirAsia could survive and thrive. This is an aspect that every business founder should embody.