Outcome Oiented - Tony Fernandes

Outcome oriented is a term used to describe an individual or organization that focuses on outcome rather than process used to produce a product or deliver a service. As such, a number of processes are used where the most effective and economical process is identified.

In this part, Tan Sri Anthony Francis "Tony" Fernandes, CBE (born 30 April 1964), a Malaysian entrepreneur who is the founder of Tune Air Sdn. Bhd is identified as an entrepreneur who is outcome-oriented. He introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly". Fernandes achieved his goal by turned AirAsia, a failing government-linked commercial airline, into a highly successful budget airline public-listed company. Since that time, he has founded the Tune Group of companies.

     Fernandes’ starting was through Datuk Pahamin A. Rejab, the former secretary-general of the Malaysian Domestic Trade and Consumer Affairs Ministry that Fernandes came to meet with then Prime Minister, Tun Dr. Mahathir Mohamad in October 2001. Mahathir advised Fernandes to buy an existing airline instead of starting from scratch. AirAsia, the heavily indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money. Fernandes mortgaged his home and used his personal savings to acquire the company, comprising two Boeing 737-300 jet aircraft and debts of US$11 million (RM40 million), for one ringgit (about 26 US cents), and transformed it into an industry player. One year after his takeover on AirAsia, the company had broken even and cleared all its debts. Its initial public offering (IPO) in November 2004 was oversubscribed by 130 per cent.

Fernandes says his timing was in fact perfect because after 11 September 2001, aircraft leasing costs fell 40%. Besides, airline lay-offs meant experienced staff were also readily available. He believed that Malaysian travellers would embrace a cut-rate air service that would save them time and money, especially in a tight economy. Fernandes estimated about 50 per cent of the travellers on Asia’s budget airlines are first-time flyers and before the advent of AirAsia, he estimated that only six per cent of Malaysians had ever travelled by air.

Fernandes' biggest achievement was to open up countries within the region to new budget carriers, which previously did not have open-skies agreements. As a result of Fernandes' lobbying in mid-2003, Dr Mahathir brought up the idea with leaders from neighbouring countries. Those nations subsequently granted landing rights to AirAsia and other discount carriers.

     In Thailand and Indonesia, AirAsia holds a minority stake in the respective local companies. Thai AirAsia, a joint venture with Shin Corporation, Thailand’s largest telecommunication conglomerate, took to the skies in Feb 2004 and has to date carried over 1 million passengers in its first year of operations. PT Awair, re-launched as a low fare airline on 8 December 2004 and subsequently renamed Indonesia AirAsia, presently serves 5 domestic destinations in Indonesia.

In 2007, Fernandes started a hotel chain, Tune Hotels, which also based on the no frills concept. It has properties in Britain, Australia and the Far East. In February 2014, Forbes Asia valued Fernandes' net worth at $650 million, ranking him at number 28 on the Forbes list of Malaysia's Richest.

As conclusion, Fernandes has achieved his childhood dream as he builds a budget no-frills airline and even started his hotel chain which also based on no frills concept. His spirits on focusing on his dream realisation is inspiring.