Reference no: EM132152495

Leading the Skies – AirAsia Tony Fernandes, the head of Air Asia believes that you can achieve anything through hard work and perseverance. Tony took the challenge to reduce flight costs and unnecessary expenses to promote low-cost flights that can be affordable to everyone with the tagline, “Now Everyone Can Fly”. Many felt that AirAsia would collapse with this low-cost model but they were proven wrong because Tony is able to shift his thoughts 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 a strong belief in his projects, although the airline industry faces tough challenges. As a result, AirAsia manages to be the world’s best low-cost airline company. At AirAsia, Tony is admired by his employees. His easygoing manner is translated into a management style that focuses on outcomes. Everyone is treated equally, the hierarchy is flat, decision-making is de-centralised and the employees are empowered. From Tony’s management approach, AirAsia was able to introduce innovative concepts such as online booking and check-in, travel insurance and holiday packages. Underlying his leadership style is the concept of employees come first and customers come second. If you have a happy workforce, they will look after your customers. Tony believes that his style of leadership is the best way to make a company flexible and profitable in order to survive in a dynamic environment. (Source: Adapted from Robbins S. P, Coulter M (2014), Management (12th edition). Pearson International Edition, New Jersey. Page 585)

(a) Explain Tony Fernandes’s leadership style.

(b) Explain how a flat hierarchy, decentralised decision-making and empowered employees make AirAsia successful.