Metaphorically speaking, Tony “Greedy Ular” Fernandes seems to be getting away with murder. For years he has been fighting to get AirAsia to land from the close and covenant Lapangan Terbang Sultan Salahuddin Abdul Aziz Shah, Subang but non avail. The commuter airport is very popular and FireFly is developing its market well from the airport.
Fernandes wanted to ‘play in the same sandbox’.
So after the successful ‘back door take over’ of Malaysia Airlines via the so called “share-swap” announced on 9 August and he and his partner Kamaruddin Meranun got themselves in the BOD with ‘executive powers’, he preyed further on for his next kill. That is not withstanding the uneasiness their presence within Malaysia Airlines caused to over 18,000 of the national carrier employees.
Of course, we all saw within weeks after pounching onto the neck of Malaysia Airlines, the devour started when the national carrier is made to pay RM 18 million for the sponsorship of his own latest private venture then; Queens Park Rangers. The RM 18 million is for only QPR’s home games where else the pleasure of trotting about the whole of United Kingdom’s stadium spectators’ games t-shirt sponsorship goes to his own AirAsia.
With a rather lousy stroke of luck, Fernandes lost his claim to the Lotus F1 team label which was fighting literally with tooth-and-nail. He had to change it to Caterham.
Recently, he announced a new premium and full service commuter airline would be operating soon, called Caterham Jet:
A new super-premium airline in the works
Posted on 9 November 2011 – 12:23am
KANG SIEW LI
PETALING JAYA (Nov 9, 2011): AirAsia chief Tan Sri Tony Fernandes, who already has interest in four airlines, is set to expand his empire further as he moves to start a new super-premium full-service carrier (FSC) that will compete head-on with Qantas’ upcoming Asia-based super-premium FSC called RedQ, aviation sources said.
Likely to be called Caterham Jet, sources said the new regional airline has yet to be granted an operating licence by the government, but has secured several Bombardier CRJs which have been sent for retrofitting.
Incidentally, it is believed that Fernandes’ Formula 1 Team Lotus will change its name to Caterham next year.
“Plans are for the proposed airline to operate out of Subang and commence operations in May next year. Some of the proposed routes include Bangkok, Jakarta and Singapore,” a source said.
Besides AirAsia, Fernandes now has stakes in AirAsia X, Malaysia Airlines (MAS) and its unit Firefly. He became a substantial shareholder in the national carrier following the recent MAS-AirAsia share-swap deal.
Talk of the new airline operating out of Subang has been further strengthened on keen interest by MAS and Firefly to redevelop Terminal 2 of the Sultan Abdul Aziz Shah Airport in Subang.
Sources said Malaysia Airports Holdings Bhd (MAHB) is expected to award the concession to redevelop Terminal 2 soon.
Subang SkyPark Sdn Bhd is believed to be the frontrunner for the job, as it is already managing the Skypark Terminal (formerly Terminal 3) next door before the emergence of MAS as a strong contender for the redevelopment works.
To recap, SunBiz reported in April that Subang Skypark was in talks with MAHB to redevelop Terminal 2, which has been vacant since November 2009 after the airport operator relocated its corporate headquarters to Sepang.
It is understood that Subang Skypark has since submitted its proposal for the redevelopment of the terminal to MAHB and is awaiting a decision from the airport operator on the matter.
According to sources, Firefly, which currently operates its turboprop aircraft out of Skypark Terminal, had also earlier expressed its interest to redevelop Terminal 2. However, its proposal is unlikely to see the light of day following the MAS-AirAsia partnership.
An industry source said there has been serious lobbying lately from MAS, under its new management team and deputy CEO Mohammed Rashdan Yusof, to redevelop and take over Terminal 2.
“It is unclear whether the lobbying from MAS is to get the national airline to manage and operate its subsidiary, Firefly, out of Terminal 2 or to allow the proposed new airline that is coming up under Fernandes’ stable of companies, to operate from there,” said a source.
Firefly and Berjaya Air are currently the only two airlines operating out of SkyPark Terminal, using the ATR 72-500s and DeHavilland Dash 7.
However, observers pointed out that the new airline will further depress the local air travel industry at the expense of the people.
Already, they said, the recent MAS-AirAsia tie-up could have resulted in a monopoly, with MAS and Firefly being pushed to focus solely on premium air travel, while AirAsia dominates the low-cost market.
“With another new airline by Fernandes, he would be holding shares of five local airlines — AirAsia, AirAsia X, MAS, Firefly and the proposed Caterham Jet.
“How would that hold up when the Competition Act 2010 is enforced on Jan 1?” an observer asked.
The observer added that AirAsia fares to most domestic destinations have gone up despite assurance by Fernandes that the low-cost carrier’s fares will not rise after the MAS-AirAsia tie-up.
Some are having the opinion that Caterham Jet would not ‘hurt’ Malaysia Airlines:
How and why Fernandes is allowed to compete against his own holdings Malaysia Airlines is a mystery. When the ‘share swap’ deal was announced in August, they justification was Fernandes is a champion of low cost carrier and he is supposed to use his experience and ‘excellent marketing strategy’ to bring up Malaysia Airlines. Now, he is competing against Malaysia Airlines in the premium and full service airline jet service.
Of course consumers would prefer Caterham Jet over Malaysia Airlines or FireFly. It is jet service and operating much closer to Klang Valley.
That is not as mysterious how and why Ministry of Transport changed its ‘All turbo props’ policy for Lapangan Terbang Sultan Salahuddin Abdul Aziz Shah. Previously, only turbo props commuter airlines in the likes of FireFly and Berjaya Air are allowed to operate from the airport. This ‘Flip-Flop’ing must be detrimental for the Malaysian Government.
We were told about ‘Sapphire Airlines’ as part of the package for the ‘share-swap’ deal.
Malaysia Airlines was asked to stop service Cape Town and Buenos Aries. It was said with Malaysia Airlines’ own town hall meeting, the service were to be handed to AirAsia X. Word has it from sources that as soon as Prime Minister Dato’ Seri Mohd. Najib Tun Razak arrived home from his Hajj trip, the instruction was put on hold. So many ways are being crafted to ‘steal the market’ away from Malaysia Airlines.
Then again, if Fernandes is allowed to start a brand new airlines Caterham Jet and is in direct competition with GLC Malaysia AIrlines in the same sector and market, shouldn’t the Government liberalise the airlines business and bring other players in?
Again, the devour of Malaysia Airlines came from day one. Not now but from the days when Rural Air Service was handed to him by then PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi on a silver platter, with all the gold laced trimmings of Government subsidy and he capitalise for his ‘book building’. No one has seen yet anything what Fernandes brought into Malaysia Airlines. The past three months was all about Fernandes using his entire business mini-empire to cannibalise every single bit of the national carrier.
Isn’t it mind boggling how he is allowed to get away with murder and now, cannibalism?
P/S: During the Roman times, there was a brutalEmperor Gaius Julius Caesar Augustus Germanicus who is also known as Caligula. Fernandes must be a reincarnation of him, with the name “Greedy Ular”.