AirAsia’s dubious support for BN

A QUESTION OF BUSINESS | We all know that caretaker prime minister Najib Razak has at his disposal a luxuriously appointed private jet which he can use at any time. It’s not one of those timeshare jets - it’s there for him to use anytime, day or night.

So why did he return to Kuala Lumpur on a low-cost AirAsia flight after a campaign trip to Sabah and waste precious time? The simple answer: a carefully orchestrated campaign with AirAsia supremo Tony Fernandes, a personality more recognisable than most cabinet members, who very publicly endorsed Najib and by extension, BN.

Not only that, the jet that Najib flew was draped in the blue of BN with the air stewardesses decked out in that same blue too. Splashed across the fuselage were the words “Hebatkan Negaraku” in Malay with the English equivalent “Make my country greater” in smaller letters. And the tail end carried an image of the BN’s 'dacing'. What a show!

This open endorsement of the Najib government by AirAsia and Fernandes, who characterised the government as one that put people first, raises all sorts of questions and implications. By praising Najib, is Fernandes implying that if the opposition comes to power on May 9, they would discriminate against him?

Is it not the duty of government to help budding airlines and hasn’t Fernandes complained in the past about how government agencies constantly discriminate against him? And is it not true that other governments under Dr Mahathir Mohamad and Abdullah Ahmad Badawi also helped him?

Also, there is the issue of potential conflicts of interests that arise if support is given for other reasons as we shall explain later, which indicates that it’s better and more desirable that businesses which deal with government regulators and other authorities remain apolitical.

I am a great fan of AirAsia and yes, even of Tony Fernandes. They brought affordable travel to Malaysians, especially to regional destinations, and made AirAsia a brand recognised throughout the world and one that obtained top rankings in its class for Asia year after year - truly an airline that all Malaysians can be proud of.

But is it politically correct to make such an open show of affection for the BN government just two days before the country goes to the polls, seen by many as a blatant move to influence voters towards BN?

Yes, Fernandes and AirAsia have the right to do it, but is it wise in terms of their business to anger a large section of its customers who might be opposition supporters (remember, 52% of voters picked the opposition in the last election)? And what if there is a change in government? How will it affect AirAsia and Fernandes going forward with a new government it has already offended by taking sides during a rather bitter and contentious campaign?

Imagine, for instance, American Airlines or United Airlines endorsing Donald Trump for president before the US presidential elections. Unthinkable. Companies which service a wide clientele base simply do not endorse particular parties or candidates because they risk offending the other half or so who they tacitly oppose by their stance. It makes perfect business sense for them to stay neutral. 

This comes after AirAsia and Fernandes endeared themselves to all Malaysians when they facilitated flight changes for those who wanted to make them because of the elections which the Election Commission in its unfairness and partiality scheduled for mid-week in a rather irrational decision which will discourage instead of facilitate voter participation.

AirAsia’s commendable actions in that instance facilitated Malaysians to return home and to their hometowns to vote but strangely provoked ire from Umno goons who saw it as an anti-government move. If it is anti-government to encourage and facilitate voters to come back and vote, so be it - it furthers the cause of a functioning democracy.

Currying favour?

So why did Fernandes now undo all that goodwill he earned for encouraging people to vote by coming up with this needless support for Najib and BN?

Perhaps it was not so needless. Perhaps his arms were twisted to show his “support”. Perhaps he wanted to buy some insurance for his airline which may otherwise be discriminated against if Najib was returned to power. And perhaps it was to make up to the government for his earlier move, a move which endeared him to the public which respects a maverick outspoken businessman who has disdain for excessive regulation and government.

Even if Fernandes’ unqualified support for Najib had no sinister or underhanded purpose, the general public is not going to believe him because AirAsia is in a position to benefit or suffer from decisions made by the government and therefore has everything to gain from currying favour with the government.

For example, this year, a ruling was supposed to come into effect which would have equalised airport passenger service charges between low-cost and full-service airlines. However, according to this report in The Edge, some passengers are paying less than others.

According to the article, online checks on airline websites show that some international passengers flying out of KLIA2 appear to still enjoy the previous rate. Airport operator Malaysia Airports Holdings Bhd said, “While Mavcom (Malaysian Aviation Commission) has regulated the revised PSC rates, which includes RM73 for non-Asean international passengers, the implementation has been deferred until further notice.”

For a one-way Malaysia Airlines flight from the Kuala Lumpur International Airport main terminal (KLIA) to Perth on April 30, a passenger is charged a PSC of RM73. Likewise, Malindo Air also collects RM73 PSC for a flight to Perth on April 30, according to the report.

“On the other hand, online checks by The Edge show an AirAsia flight to the same destination on the same day is levied a PSC of RM50 only. AirAsia declined to comment for this story,” the article said.

Clearly, such a difference in charges will help to keep AirAsia fares low and more competitive with others, which is a good thing for its customers. But it also clearly illustrates how there is a potential for conflict and possibility of discrimination against others when AirAsia begins to indulge in politics by endorsing a particular political party. There can be a quid pro quo here and that’s bad.

The existence of such conflicts and the immense possibilities that it raises for cosy patronage arrangements and even corruption is one more reason for voting this government, which AirAsia and Fernandes wholeheartedly endorse, out.

And then hopefully with a new government, AirAsia and all other companies can be dealt with at arm’s length, fairly and equitably to take into account everybody’s interests, and especially the public’s. This is putting the people first.

Sorry, Tony, I disagree with you vehemently. This government does not put people first. I have seen that happen over and over again over the years and get worse and worse so much so that it now threatens the very health of the country if we do not put a stop to this government’s excesses. Hopefully a new government will.

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P GUNASEGARAM votes against patronage and corruption of any kind. Email: t.p.guna@gmail.com. - Mkini