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With head in the clouds, AirAsia boss needs a down-to-earth reality check By Julian Tan

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Publish date: Sun, 05 Sep 2021, 03:08 PM

AS marketing goes, AirAsia boss Tan Sri Tony Fernandes is at the top of his game. However, even the man who revolutionised regional low-cost air travel is not averse to making critical marketing blunders.

On National Day this week, Fernandes, who has branded himself as the face of one of the most successful low-cost carriers in the world, posted on Instagram about getting a Tesla Model Y for two weeks.

“Independence day. Going green. No more gasoline. Gone electric. Rented Tesla model Y for two weeks . Love it,” he wrote.

This time around, the self-proclaimed marketing whiz misread the sentiment of his social media followers, many who have huge misgivings about AirAsia’s track record. The reaction to his posting was swift and brutal.

Many took him to task for splurging on an “expensive toy” when hordes of travellers who had purchased AirAsia tickets prior to the Movement Control Order (MCO) had yet to get their refunds, after travel restrictions were imposed to curb the spread of COVID-19.

“The car’s side mirror has been paid using my money since MCO 1.0. I’ve purchased AirAsia flight tickets for months but was unable to fly. There goes my money,” one user @mahdialjunied replied to Fernandes. The Tesla model Y sells for around RM200,000 in Malaysia.

The co-founder of the country’s first no-frills airline is listed as being worth US$335 mil (RM1.389 bil) by Forbes, making the self-made aviation tycoon the 41st richest man in Malaysia last year.

Whichever way one looks at it, Fernandes, by making public his lavish lifestyle at a time when many Malaysians are languishing due to the pandemic, has only infuriated the public, especially those who feel short-changed by a company with a reputation for nit-picking, if not profiteering.

Detached and disconnected

Fernandes’ post on the expensive Tesla is not the first time he misjudged public attitude towards him and his companies. On the eve of the 2018 general election, Fernandes posted a video asking voters to back then Prime Minister Datuk Seri Najib Tun Razak, a scandal-tainted leader who went on to lose the polls.

The AirAsia boss was quickly derided by the public. Soon after Najib was booted out, Fernandes made a 180 degree turn and apologised for rallying behind the ex-premier, blaming the decision on pressure from Putrajaya.

As it is, Fernandes is not just splurging on luxury cars despite the unresolved ticket refunds delay involving thousands of furious AirAsia travellers. He has also gone on a corporate shopping spree, in an attempt to reduce his company’s dependence on air travel business.

Last month, AirAsia started a ride-hailing service in Malaysia and recently acquired Gojek’s Thailand operations. The company is considered a latecomer to this cutthroat industry and analysts are skeptical Fernandes can turn things around under the current economic climate. AirAsia’s ambitious plan to rival Grab by coming up with its own “super app” has yet to make any ripples in the market.

With debts worth RM4.1 bil and swimming in red ink due to a coronavirus-induced air travel slump, things are not exactly looking bright for Fernandes.

His audacity to post on Instagram about his new “expensive toy” just goes to show how detached Fernandes is from reality – whether from a personal marketing standpoint or from a business branding strategy.

It is time Fernandes gets his head out of the clouds and brace for a hard landing instead. – Sept 5, 2021.

Julian Tan is a FocusM editorial contributor

 

https://focusmalaysia.my/with-head-in-the-clouds-airasia-boss-needs-a-down-to-earth-reality-check/

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