Having proven her mettle in corporate finance, AirAsia CEO, Aireen Omar, tells S Puvaneswary how staying composed helps her to navigate workforce dynamics as well as headwinds in a fast-changing aviation industry
You’ve been at the helm of AirAsia Malaysia since June 2012. How has it been as the CEO?
It has generally been very challenging and exciting and also overwhelming at times. You can’t really prepare for everything as there is always the unexpected that comes each day and you just have to learn fast and decide quickly on how best to address it. I find this industry more or less the same as when I started my career on the trading floor where you have all sorts of challenges that you need to assess and make decisions quickly.
Was the transition from regional head of corporate finance and treasury to CEO an easy one?
Both present very different challenges. It is not an apple to apple comparison. Before, I dealt with the dynamics of the financial markets, on how the company should strategise itself in order to grow well.
In this new role, I have to see a far bigger picture than just the dynamics of the financial markets. I have to see how we can strategise and protect market share. I have to ensure that our staff are always happy at work, their morale is high and they are eager to do new things, and that the company keeps growing. It is important to me to ensure that the adrenaline and passion are there so we can stay ahead of the game. Now it is about managing people and that’s actually harder than managing the financial markets.
How does it work between you and Tony Fernandes (group CEO of AirAsia)? How much autonomy do you have?
He is a great mentor. When I have issues, I seek his advice and I have learnt a lot from him as well. We work well together. He gives me space to make decisions. He will listen and guide if I need help.
What’s with female leaders – Marianne Hontiveros (CEO of AirAsia Philippines) and Kathleen Tan (CEO of AirAsia Expedia) – and AirAsia? Where are the boys?
We are not focused on gender. If you can deliver, regardless of your gender, background, culture or race, you deserve the promotion and we will make sure you will continue to grow in the company. We promote based on meritocracy.
What are your strengths and weaknesses? How are you playing to them in your current role?
It is most important for a leader to stay calm. In situations when everybody gets all excited or panicky, it is really important for me to stay calm so that the team also stays calm and we find a solution to the problems facing us. You can’t really show your emotions too much. You have to show stability, so that they can rely on you for a decision to be made. My weakness is that I don’t know how to balance my time very well.
Who inspires you?
Both AirAsia founders, Tony Fernandes and Kamarudin Meranun. I have learnt a lot from them. They never give up. They always find ways to make sure things are well, and turn negativities and challenges into opportunities to ensure the company keeps growing.
What do you hope to change?
This industry has a lot of growth opportunities but this growth does not come that easily because of external factors at play. You need to create that awareness to get better infrastructure and facilitate the pent-up demand we see in this region.
One of the industry challenges in this region is that aviation policies were designed way back, 30-40 years ago, where the main operator at the time was the national airline. The dynamics have changed since. LCCs have come into the scene and air travel is no longer seen as a luxury but affordable and for the masses. While the whole concept and demand for travel have changed, the infrastructure to facilitate it has not been able to change in tandem with the kind of traffic volume we have seen.
The relevant authorities should look at how they can facilitate more growth and connectivity into Malaysia and this region, and minimise air traffic congestion. We need to relook areas such as airport charges because these days people also shop and spend at the airport. Everyone is taking advantage of the traffic volume that an airline brings because the airport will be dead without the airlines, right? We are bringing in passengers, taking risks, doing all the necessary marketing, making aircraft investments and negotiating for more connectivity, so it is only fair that the airports work closely with the airlines and come up with more strategic partnerships to ensure that the traffic keeps coming and everyone benefits.
LCCs are fast expanding in the region, but competition is rising too and many airports seem to be lagging behind in supporting this growth. Are LCCs at risk of expanding too fast, too quickly?
As mentioned earlier, we have to continue creating awareness, lobbying and making sure that the relevant authorities are aware that they need to (improve) infrastructure to facilitate the growth and benefits that LCCs have brought into their local economies. Malaysia, Thailand, Indonesia and Singapore are already finding ways to facilitate this growth because everybody wants a piece of the LCC success story.
We are not worried about the competition out there. South-east Asia itself has a 600 million population and its geographical landscape is so conducive for air travel. South-east Asia has one of the world’s fastest-growing GDPs – there is high growth of middle-income earners and that supports LCC travel. We also have the first mover advantage, having established ourselves in the region by flying to all the capital and secondary cities. We have that advantage to continue to grow further.
Do you foresee tough competition with the ASEAN Open Skies Policy?
Not really, we have the first mover advantage. We embrace and look forward to the Open Skies Policy. There will be no or less restrictions for us to fly anywhere we want to. It will benefit all countries because of the enhanced connectivity into the region.
Any hints on what new destinations we are likely to see soon?
There will definitely be new destinations. AirAsia Malaysia and our affiliates have created a network together, so now it is just a matter of connecting all those points established by all the entities within the group. I cannot hint on new destinations as they have not opened up for sale yet, but they will be unique destinations.
How beneficial is the AirAsia Group to AirAsia Malaysia’s performance? Is there a lot of feeder?
We feed each other and grow the network together. When it comes to international connectivity, the whole group will sit down and work together to see how best to build the AirAsia network, so that it will be the most efficient and optimised in terms of aircraft usage, revenues, etc.
How do you foresee LCCs evolving in the next decade?
LCCs will become more efficient, resulting in the unit cost getting lower and lower. There will be improved customer experience with technology playing a big part.
This article was first published in TTG Asia, August 22, 2014 issue, on page 5. To read more, please view our digital edition or click here to subscribe.
