I know nothing about shares. I know nothing about buying and selling companies too. Maybe that’s why I find this deal is really … err… interesting.
I guess you know Datuk Tony Fernandes?
For the uninitiated, he is the founder and CEO of AirAsia. Unless I am very much mistaken, he should be holding a major piece of shares in AirAsia this budget airline.
Now look at FAX. After the announcement that it can fly long route, this company swell from the once small-time-operator to a potential big player. AirAsia Bhd suddenly is in discussions for a 20% stake in Fly Asian Xpress Sdn Bhd (FAX).
Lets look at the current status of FAX. Its stakeholders are AirAsia CEO Datuk Tony Fernandes (50%), Kamarudin (30%) and FAX CEO Raja Mohd Azmi Raja Razali (20%). (Kamarudin, if not mistaken, is Tony’s deputy in AirAsia. Raja Mohd Azmi was the previous AirAsia chief financial officer, before he left to setup FAX)
Don’t you find the deal very interesting now?
How is the deal going to be done? Or more interestingly, how is FAX going to reject any offer from Mr Tony? Who is going to sign the paper? Same name for buyer and seller?
p/s Eric, I hope that answer your question about FAX.
Errr… I don’t really understand. Does that mean, AirAsia and FAX are actually sister companies? They actually belong to the “same group of people”? Then what’s the interesting part? Sorry, I’m a bit stupid in this. :p
this is normal, especially when they are targeting different market segment. Tony Fernandes is smart. Air Asia X success is unknown, budget airline for long route is untested yet.
if Air Asia X failed, just close the company, and this won’t impact Air Asia.
If you see big corporation, they also have hundred of small companies operates all kind of businesses. each of the small companies are also owned by the same “bosses”. If company A failed, just close it. The rest of companies continue operates.
The interesting part is, FAX was setup separately, and now only AirAsia want to buy 20% of it.
I’m not concern about that, I just concern that is that save to fly now days?
It’s a common business strategy, a parent company owns companies that go into different segments of the market or different stages of a process. Sort of a cartel.
anyway, i found out that this tony is very smart…
Can bring up Air Asia so fast… Even better than MAS…
I heard that their website always congested with visitors when they giving out free tickets…