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Colorful airline boss confronts major crisis

(China Daily/Agencies) Updated: 2014-12-29 07:08

Malaysian mogul Tony Fernandes, who transformed a floundering carrier into Asia's biggest budget airline, faces his first major crisis after an AirAsia plane disappeared on Sunday with 162 people on board.

AirAsia is credited with starting a revolution in the skies of Southeast Asia and has seen spectacular growth under Fernandes' low-cost, low-overhead model despite intense competition.

The ebullient tycoon is one of Asia's most visible entrepreneurs, carving out an image that has seen him frequently compared to colorful Virgin Group Chairman Richard Branson.

Fernandes maintained an image of calm on Sunday even as his company plunged into its first major crisis after an AirAsia passenger jet disppeared in bad weather en route from Indonesia to Singapore.

"Thank you for all your thoughts and prayers. We must stay strong," he tweeted as he left for Surabaya, where most of the passengers are from. "My only thought (sic) are with the passengers and my crew."

This incident caps a disastrous year for Malaysian aviation, which saw beleaguered rival Malaysia Airlines suffer two air tragedies in rapid succession. A former record industry executive who acquired the then-failing airline in 2001, Fernandes is ranked 28th on the Forbes list of Malaysia's richest with an estimated net worth of $650 million.

The tycoon, a flamboyant spirit in Asia's staid business world who favors bluejeans and caps over power suits, has made a habit of defying naysayers.

He took over money-losing AirAsia shortly after the Sept 11, 2001, attacks in the United States sent the global aviation industry into a tailspin, and was given little chance of succeeding. He bought the airline, its two aircraft, and 40 million ringgit ($11.46 million) in debt for the token sum of 1 ringgit, mortgaging his house to pour money into the carrier.

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