Idris Is Being Petty, Says AirAsia Chief

KUALA LUMPUR, AirAsia Chief Executive Officer Datuk Tony Fernandes said his Malaysia Airlines (MAS) counterpart was being "petty" for withdrawing the big discounts he enjoyed on MAS flights.

Fernandes told Bernama Monday night that such discounts were actually "standard practice" similar to those given to him by airlines such as Cathay Pacific, Virgin, Qantas and others.

"It's a courtesy extended to airline CEOs. Just like in the music industry, I gave free CDs to Warner Music or vice versa," said Fernandes, who was in the music industry before he started Air Asia six years ago, which has grown to be Asia's largest budget airline.

MAS managing director and CEO Datuk Seri Idris Jala, in a letter to Fernandes dated May 28, a copy of which was emailed to Bernama Monday night, announced the airline management's decision to withdraw Fernandes' travel discounts.

According to Idris, the management had received a lot of letters of protest from many MAS staff regarding the Air Asia boss' travelling privileges in the wake of "negative statements" he made about MAS.

In his letter, Idris wrote: "Many of our staff feel extremely hurt and frustrated with what they read in the news. The sense of unhappiness among our staff is growing and the pressure from the unions is mounting by the day.

He also said because of the many criticisms levelled against MAS by Fernandes, the management was left with no choice but to withdraw the travelling privilege with effect from June 1.

But Fernandes, in reacting to the decision taken by its bitter business rival, said his criticism against MAS were solely motivated by AirAsia's demand for a "level playing field" by the national carrier.

"All I ever said was MAS should give us a level playing field. For example, MAS is always against AirAsia fying to Singapore," said Fernandes of a major bone of contention between the two Malaysian airlines over what is seen as the most lucrative route in the region.

Asked whether he believed it was really MAS workers' union that had pressured the airline to withdraw the discount -- 50 percent for First/Business Class and 75 percent on Economy -- Fernandes said: "We just want to be treated fairly. What's the point of getting too personal in all this?"

The outspoken budget carrier trail-blazer said he was focused on his business and the AirAsia shareholders, adding that, "People who don't like me, will always find means not to like me."

Asked whether it mattered to him to have the discount on flying MAS taken off, Fernandes replied: "I haven't been using it very much, so it's fine with me."

Idris, when contacted, maintained that it was the airline's workers unions which started the move.

As he put it in his letter to Fernandes, "It was the best course of action for now, in view of the general sentiments among the staff."

BERNAMA
17/06/08

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