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Business

AirAsia boss accuses rival, regulators of inefficiency

Published: 20 Feb 2014 - 12:58 am | Last Updated: 27 Jan 2022 - 01:38 am

KUALA LUMPUR: AirAsia boss Tony Fernandes savaged state-backed flag carrier Malaysian Airlines and the nation’s aviation authorities yesterday, accusing them of mismanagement that was harming the travelling public.
The budget airline mogul posted the comments on his Twitter feed a day after fierce rival Malaysia Airlines (MAS) announced it had lost a whopping 1.17bn ringgit ($355m) in 2013.
“AirAsia Allstars, take a bow. Malaysia Airlines lost over a billion,” Fernandes tweeted. “So much money wasted. If people were more efficient Malaysians would spend less on travel.”
Fernandes bought ailing AirAsia in 2001, quickly turning it around with his no-frills, low-fare formula. AirAsia has put severe pressure on inefficient MAS, which analysts say is hampered by poor management, bloated and demanding unions and government interference.
On Tuesday, MAS also reported its fourth straight quarterly loss and warned of a “challenging” year ahead. The airline has bled money in recent years and announced a series of turnaround plans, but the poor earnings have continued.
“I wonder if it’s fair that Malaysia Airlines can lose so much money and protect its market share. Can only do that with taxpayers money,” Fernandes tweeted.
The outspoken Fernandes also took aim at Malaysian regulators, implying they were seeking to hinder MAS’s competition.
“Imagine how many jobs AirAsia could have created if (there was) effective regulation,” he said. 
AFP