Aug 19, 2011

QPR Takeover is Latest Bold Move for Fernandes


He already owns Asia's biggest budget airline and Team Lotus of Formula One -- now Malaysian tycoon Tony Fernandes has spread his wings even wider by securing a majority stake in Premiership newcomers Queens Park Rangers.
The chief of fast-growing AirAsia will no doubt be gunning for a high finish for the West London club, a tall task for a team that was only just promoted back to the English Premier League this season after 15 years.

But Fernandes, a flamboyant spirit in Asia's staid business world who favours blue jeans and caps over power suits, is making a habit of defying the naysayers.
Fernandes, who is of Indian-Portuguese descent and married with two children, struck a deal with F1 boss Bernie Ecclestone on Thursday for a 66-percent share of QPR. Indian steel magnate Lakshmi Mittal is the other major shareholder.
The move came after an earlier bid for West Ham United was rebuffed -- Fernandes spent much of his youth studying in England and playing schoolboy rugby, and has long been a fan of the Hammers.
An accountant by training but also an accomplished pianist and amateur guitarist, Fernandes was a Virgin Records accountant and later a Warner music executive until he decided to act on his dream of running an airline.
He took over loss-making AirAsia in late 2001, shortly after the September 11 attacks in the United States sent the global aviation industry into a tailspin, and was given little chance of succeeding.
Fernandes, now 47, bought the airline, its two aircraft, and 40 million ringgit ($13.4 million) in debt for the token sum of one ringgit, mortgaging his house to pour money into the carrier.
But with his motto "Now everyone can fly", he has turned it into a growing force in the aviation industry, with profits mounting and its route system expanding worldwide.
It is now Asia's largest low-cost carrier by fleet size and flies to 78 destinations, while its long-haul budget arm AirAsia X -- launched in 2007 -- covers another 11 including London.
In a sign of the airline's growing clout, loss-making national carrier Malaysian Airlines (MAS) -- once a fierce rival of AirAsia -- this month brought Fernandes into a surprise share swap and strategic partnership in a bid to spur an AirAsia-style turnaround at MAS.
With millions of diehard Premiership football fans across Asia, Fernandes's investment in QPR will help promote the AirAsia brand in the booming region and in Europe where he is keen to expand his foothold.
But the deal has led some to question whether Fernandes is over-reaching.
"It would appear that he is spreading himself too thin with these non-aviation related ventures," Shukor Yusof, an aviation analyst with Standard & Poor's Equities Research, told AFP.
But he added that Fernandes was probably keen to diversify his wealth from too heavy a reliance on the volatile airline industry.
"I don't quite understand why he's going after QPR, but Tony is a canny guy and there's method in his madness," Shukor said.
Fernandes shrugged off the doubters last year to establish his Formula One team -- although the venture has been dogged thus far by a dispute with carmaker Group Lotus over naming rights.
"It's good when people laugh at you because they don't take you seriously," he told AFP in 2010 amid jibes over his rookie team.
People familiar with Fernandes's personal wealth estimate it to be $500 million, based on the recent increase in the share price of AirAsia.
But the ebullient mogul, who was honoured by Forbes as the 2010 "Asia Businessman of the Year", is easily his country's -- and one of Asia's -- most visible entrepreneurs, carving out an image that has seen him frequently compared to colourful Virgin Group chairman Richard Branson.
The two men are friends -- Branson also owns a stake in AirAsia X -- and share a similar sense of humour.
Fernandes won a bet with Branson at the 2010 Bahrain Formula One GP, with the loser obliged to dress as a stewardess aboard an AirAsia X flight. Branson is yet to carry out the stunt.

Source : AFP

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