Reference no: EM132541512
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, his employees admire Tony. 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 assets. 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 works? 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.
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 his effort to transform AirAsia into a healthy and money-generating company?
3. How could future leaders be identified in this organization? Would leadership training be important to this organization? Discuss.