QUOTE(michaelyii1988 @ Mar 12 2012, 09:21 PM)
its not HQ lah,juz their operating office kinda thingy moving to Jakarta..
fuel price keep rising+ low demand route = kena cancel lo the route..
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From: Tony Fernandes
Sent: Wednesday, 7 March, 2012 3:23 PM
Subject: AirAsia ASEAN
Dear AllStars,
As we continue into 2012, I would like to say a huge “Thank You” to all staff for helping AirAsia to soar in its first decade of operations. I look forward to working with all of you for an even more exciting second decade!
Going forward however require us relooking at some of the critical roles and organizational set-up we have, and think about what new things we need to introduce. The things that helped made us successful in our first decade may not be the best things as we enter into our second decade. We must always innovate and change to suit the new times and conditions and realities.
Starting from 2012, there will be two major changes to the way we do business. I would like to talk about them in more details, and tell you about what are our plans in implementing them.
1. JAKARTA OFFICE
In 2012 we will start operating the new AirAsia Jakarta office in Jakarta. We will have a small core of Group functional heads there, who will manage the various AirAsia companies as a group. They will make sure we have a consistent look and feel in our branding and operations and culture wherever we operate. This is a critical need as we become bigger and start having more operations in more countries.
Given that the ASEAN secretariat is also in Jakarta, this will help us to push for a more level playing field, both on commercial, operational and regulatory areas, across all of ASEAN. This will help AirAsia especially, already the most ASEAN of all companies in the region, grow and expand and become a true ASEAN powerhouse.
The Group heads based in Jakarta will be located there permanently. I expect all movement and transition from their current office (mostly from MAA in Kuala Lumpur, though over time I want to see a truly diverse Group management team from all across the region) from April 2012.
The Group heads and teams will be travelling a lot across the Group operations to make sure they are consistent and we leverage on any opportunities to learn from each other as well as cut costs and increase revenues. Group heads won’t be “double-hatting” anymore – they won’t be handling Group AND country responsibilities at the same time. I want the Group heads to appoint country heads to replace them in their country roles immediately, or where succession is not ready, before the end of the first half of 2012.
I shall be appointing a CEO to the Malaysian operations soon, and have proposed the name for the Board’s consideration. I shall fully move into my role as the Group CEO working with the country CEOs of Malaysia, Thailand, Indonesia, Philippines, Japan (and other countries as they come on board), as well as the Group functional heads. I and Kamarudin shall be working out of Jakarta whilst we work on our group growth strategies, but we will be travelling across our networks regularly, and you can expect to see us as much as before, if not more.
2. GROUP MANAGEMENT STRUCTURE
The way we run the group now is based on strong relationships and constant communication and high level of trust. Whilst we have pushed through a few core beliefs and principles on how the AirAsia companies should be run (high efficiency and asset utilization, great and consistent branding, great culture etc) it gets more and more difficult to continue managing it this way as we grow.
The downside of our current management structure is that countries sometimes becomes misaligned from the core management and business principles, and we end up spending a lot of energy trying to bring everything back in line. Our energy is best used to grow the business and fight the competition and serve our guests better rather than fix internal misalignment.
With that in mind, and in conjunction with the set-up of our Jakarta office, we will manage the Group differently from 2012 onwards. Here are the core roles, and how they will interact:
Deputy Group CEO, President Group Finance, Corporate Finance, Treasury and Legal : Kamarudin will take on this role to ensure the group has a strong and focused management and supervision in the critical areas of finance and legal and compliance. Reporting to him are Andrew Littledale, who has just been promoted to Group CFO, Aireen Omar who handles Corporate Finance, Amir Faezal who handles Legal & Compliance, whilst Kamarudin handles Treasury direct
Group Management Team (GMT): This will be a small core of our senior management team that will meet regularly and review the group’s progress and decide on policies as well as push for innovation and collaboration. The members shall be myself, Kamarudin, Tassapon (TAA CEO), Bo Lingam (Group Chief of Operations & Planning), Kathleen Tan (Group Head Commercial, also representing the AirAsiaGo/Expedia JV), Andrew Littledale (Group CFO), Zaman Ahmad (Group Head of Customer Experience & Technology, also representing the CAE/Academy JV), Johan Aris Ibrahim (Group Head Financial Services & Loyalty, also representing the Tune Group) and Adzhar Ibrahim (Group Head People). Azran Osman-Rani, representing AirAsiaX, is also a part of the GMT. Other members of the management team outside of the GMT may also be invited to attend permanently or as needed.
Country CEOs: They will work towards growing the business in their country, manage safety, manage corporate governance (and investor relations when they go public) and government relations, be local ambassadors of our brand and look for and develop new business opportunities. They will also monitor the performance of the Group heads and their teams in their own respective countries.
Group Heads: The Group heads of operations, commercial, customer experience, people, financial services and loyalty will run their respective functions by having direct control of the various country heads under their function. They will hire the country heads, manage their performance and determine their rewards such as increments, promotions, bonuses and growth and development. They will work very closely with the country CEOs to make sure good decisions are made and communication channels are open.
In functions where the country CEOs have primary responsibilities, such as finance, safety etc, the country heads of such functions will work closely with the Group heads of those functions to make sure we have consistent policies and processes and decisions are made after having taken into account all relevant factors at country as well as group level
Country Heads: in the functions that report direct to the group heads, the country heads will report directly to the Group heads, and indirectly to the country CEOs. They will take their primary instructions from their group heads, who will work closely with the country CEOs to make sure we manage all issues properly and we share all successes together.
In areas where the countries have direct responsibilities, such as finance and safety etc, the country heads of these functions will report directly to the country CEOs, but with strong ties to the Group heads of these functions
This business model has its own complexities, but it has been proven to be very successful by large international companies such as GE which wanted to create a strong and consistent operation, branding and culture. I have full faith and trust in our managers’ ability to work together and trust each other and learn from each other, and I have no doubt we can be successful.
To recap:
• I and Kamarudin shall manage the AirAsia Group through our Jakarta office.
• We have set up a Group Management Team (GMT) made up of a small team of functional heads and CEOs to help manage the group.
• Country CEOs will focus on growing the brand and the business and managing regulatory functions in their own country, whilst Group heads will have primary responsibility in managing the operations and branding and culture in all the countries directly. But the country CEOs will have a key role in monitoring the overall performance of the country. Some country heads will report directly to Group heads, and indirectly to country CEOs, whilst some others will report directly to country CEOs and indirectly to Group heads.
• Country heads of the functions that are run directly by Group heads will be hired, managed, rewarded and developed by Group heads, who will work closely with the country CEOs on these.
• The country organizational set-up must be identical from one country to another country. This will allow us to manage each country consistently through this new management structure. Where there are current inconsistencies, we will make changes that will become effective as soon as possible
There are a lot of details that need to be worked out – keep a lookout for more details being announced over the next few weeks. I expect the structure to be fully set up and changes to reporting lines made and job descriptions re-written before the end of Quarter 2, 2012.
Lots of love
Tony