Changes at AirAsia X helm, senior staff leaving, says report

The AirAsia group is now the focus of many over talk that senior executives are leaving the popular budget carrier. – Reuters pic, January 28, 2015.

Following the tragedy involving Indonesia AirAsia Flight 8501 which crashed into the Java Sea last month, the popular budget carrier is in the limelight in Malaysia over talk that senior executives are leaving the AirAsia group.

The New Straits Times reported today that AirAsia X chief executive Azran Osman Rani, who was handpicked by group CEO Tan Sri Tony Fernandes to helm the long-haul subsidiary of the budget carrier, is serving out his notice.

The English-language daily reported that Azran, when contacted, did not confirm or deny his departure.

But, he was quoted as saying that he was staying put in Air Asia X, which he added was expected to turn around.

He added that he was excited about progress in AirAsia X after what he termed as an “exceptional” 2014, given market conditions and the incidents in the Malaysian aviation industry.

National carrier Malaysia Airlines Flight MH370 disappeared under mysterious circumstances on March 8 last year when the aircraft, carrying 239 people, disappeared en route from Kuala Lumpur to Beijing.

It is believed to have ended in the Indian Ocean although international search efforts have failed to find any wreckage.

On July 17, MAS suffered another blow when flight MH17 from Amsterdam was shot down over Ukrainian air space, killing all 298 people on board.

According to Azran, demand from China, one of its biggest markets, had softened, but he added that this trend had turned around.

"Things are working out well for AirAsia X. We are excited to show the progress that we have achieved in the fourth quarter of 2014," he said, adding that the results will be announced in February.

The report, quoting sources, mentioned that AirAsia group had said there would be major changes at AirAsia X given the losses suffered in the past two years.

AirAsia is also said to be facing pressure from intense competition in Southeast Asia amid weak market sentiments.

"The two airlines will be consolidated to create a larger operating airline group and there will be many redundant positions once the exercise is completed," a source was quoted as saying.

Two other people rumoured to be leaving are AirAsia X chief financial officer Chew Eng Loke and legal head Hanie Izawatie.

The New Straits Times reported that former president and CEO of Air Canada Robert Milton, who has been a director with AirAsia Bhd since 2013, is said to be playing a more prominent role in the overall operation.

Air Asia X chair Tan Sri Rafidah Aziz, when contacted, said there would be a board meeting this week where several issues would be discussed.

"Just wait for whatever comes up after the meeting and the announcements that follow," she said when asked about talk of Azran and other senior staff leaving.

Azran was appointed CEO in July 2010 on a three-year contract, which was renewed for another three years until July 4, 2016.

He was previously senior director of business development in satellite television company Astro.

Chew has been CFO of AirAsia X since September 1 while Hanie has been with them since June 2008.

- TMI