Question

Article :

LEADING THE SKIES – AIRASIA

Tony Fernandes as the CEO of AirAsia does not believe in taking no for an answer and that you can believe anything through hard work and perseverance. By relying on this motto, he was determined and bought the debt-ridden airline. AirAsia, for the sum of $0.26. miraculously, he has settled all the debt within in a year. Although the world’s airline industry was severely affected by the tragedy on September 11, 2011, Tony took the challenge to reduce flight costs and unnecessary expenses to promote lowcost flights for everyone by throwing the idea of having luxury services in flight, with the tagline “now everyone can fly.” Many businessmen feel that Tony will collapse with this low-cost model, but they are wrong because Tony is able to shift his thought quickly to exploit market opportunities, react to challenges, and not give up easily. Tony sacrifices everything to run the airline, committed to his work and strong belief in his projects, although the environment is not favorable for his business situation. As a result, AirAsia manages to be the world’s best low-cost airline company and continues to flourish today.

At AirAsia, Tony is admired by his employees. His easygoing manner is translated into management style that focuses on outcomes, not form. Everyone is equal, the hierarchy is flat, decision making is decentralized, and the employees are empowered – practices that are alien in most Asian companies. From Tony’s participative management approach, AirAsia has experienced many innovative concepts, namely online booking and check-in, travel insurance, and holiday packages. Underlying his leadership style is the concept of employees come first, customers come second. If you have a happy workforce, they will look after your customers. According to Tony, his employees are his ultimate asset. He recognizes every one of them by name, and they share the same passion. Tony’s line of thought is considered as the latest fad in modern management thinking in which the bottom line of his concept is to turn the conventional management pyramid upside down.

Why did Tony decide to embrace this leadership style, and does it work? Tony deemed that it was the best way to transform the company from unyielding to a flexible and lucrative business practice in order to survive in a dynamic environment.

4 Questions :

1. Explain Tony Fernandes’s leadership style. What are the benefits and drawbacks of his style?

2. Based on Tony Fernandes’s radical approach, how does it foster or hinder effort to transform AirAsia into a healthy and money-generating company?

3. How could future leaders be picked in this organization? Would leadership development be important to this organization? Discuss.

4. What could other businesses learn from Tony Fernandes’s approach to leadership?

Answer 1

1. Tony Fernandes is known to be the alluring CEO of Air Asia. "In spite of having gotten different global honors and awards for AirAsia and himself, Fernandes remains an extremely sensible and agreeable manager who has a fast grin for everybody. He is without a doubt an alluring speaker as he talks at a dimension that the layman can get it. Truth be told, from his dressing; a pervasive top and unassuming shirt, he doesn't pay attention to himself too regardless of being the CEO of a multi-billion aircraft transporter.

Representative will be additionally ready and Able to work - Turnover of organizations lacking in light of the fact that pioneers lean toward the accommodation of workers, with the goal that workers feel good in their workplace. - Employees will be inspired to work - If representatives are agreeable, the support of the client would be in an ideal situation and more clients are glad. Representative and client faithfulness - Top administration can focus or concentrate on huge issues, for example, the organization's generally corporate procedure. - Giving capacity to bring down dimension administrators to settle on choices for the lower level director who was most tau task in detail and forward-thinking data about the activity consistently.

Disadvantages:- Lower level supervisors can settle on choices without completely understanding the organization's general targets. - If the lower level directors settle on choices all alone, can prompt absence of coordination. - The spread of creative thoughts that could be troublesome in an association that decentralize.

2. How Tony Fernandes approaches the workers make the organization could be a standout among the best organizations in Asia, could even pull in individuals to come back to go via air after the occasions September 11.2001. Furthermore way Tony Fernandes in long haul believing that made him pull the trigger and influence the organization to flourish. Upsetting endeavors to make Tony Fernandes, Air Asia into a productive organization that is the manner by which He can change individuals' impression of flying after the disaster September 11, 2001 and can create benefit.

3. Future Leaders must have fearlessness, to think long haul, take strong choices and nice. Truly, in light of the fact that we think the significant improvement initiative in this association to have the capacity to get future pioneers is equivalent or more than Tony Fernandes to have the capacity to keep on running the organization and to have the capacity to develop and turn out to be better.

4. A terrible circumstance isn't generally a little possibility and certainty to make something new that can now and then be a fortune in an organization. Initiative ought to know that our workers are the organization's principle resource. Comfort workers can influence client accommodation also.