By Danial Azhar
KUALA LUMPUR (Reuters) – Capital A’s Tony Fernandes said on Wednesday he has agreed to put aside his retirement plans and signed a new five-year contract to continue as CEO of the company, operator of budget airline group AirAsia.
Fernandes, who said in January that he planned to retire within the next five years, said he made the decision to extend his contract following requests from the company’s board of directors to stay on.
“Pension plans had to be put on hold to ensure our survival,” Fernandes told reporters.
Fernandes has run the company since 2001, when he and business partner Kamarudin Meranun acquired AirAsia from the Malaysian government for 1 ringgit, about $0.30 at the time.
AirAsia, which started with two aircraft, has since grown into one of Asia’s largest airlines, with a fleet of around 200 aircraft serving Southeast Asia and China, among others.
But it was hit hard by pandemic travel restrictions, which led the Malaysian stock exchange to classify Capital A as a PN17 company or face financial difficulties.
Fernandes reiterated that Capital A was working on a restructuring plan to lift the PN17 tag, and expressed confidence that its aviation business will return to pre-pandemic levels in the second half of the year.
The company is also expected to announce updates to its plan to merge its long-haul AirAsia
“We hope that by June and July we will have all our planes back,” he said. “In 2025 you will see that AirAsia is better than in 2019.”
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AirAsia, a major customer of aircraft maker Airbus, could also consider other suppliers, including Chinese aircraft maker COMAC, as it looks to expand its fleet amid an industry-wide supply crunch, Fernandes said.
“Never say never… I think the most important thing is that we want to grow,” he said.
Shares of AirAsia Capital A rose by 1.5%.
($1 = 4.7740 ringgit)
