17-06-2008: Jala withdraws privilege for Fernandes
by Gan Yen Kuan
KUALA LUMPUR: The bitter feud between Malaysian Airline System Bhd (MAS) and AirAsia Bhd may have come to a head following AirAsia chief Datuk Seri Tony Fernandes’ decision not to fly MAS anymore, given the national carrier’s move to withdraw his “travelling privilege”.
MAS managing director and chief executive officer Datuk Seri Idris Jala wrote a letter dated May 28 to Fernandes, informing him that MAS had decided to withdraw the “travelling privilege” given to him in 2006, local online news website Malaysiakini reported.
The priviledge entailed a 50% discount on first and business class, and a 75% discount on economy class. However, these had been lifted effective June 1.
Confirming the report, Fernandes told The Edge Financial Daily: “Yes, it’s true. We all laughed at it (the letter). I think it’s funny.” Fernandes said he would not fly MAS anymore and it was not entirely because he no longer enjoyed the discounts.
“Even with the 50% discount given by MAS, the fares are still more expensive than what Etihad and Qantas sell,” he quipped. “Etihad’s fares are cheap. I also get more than 75% discount from Qantas and Cathay Pacific.”
According to Fernandes, it is a common practice for airlines’ chiefs to give discounts to rival airlines’ chiefs as goodwill.
“I have also given Idris Jala his privilege. When I wrote the letter to him requesting for discounts, I told him, ‘you can travel on mine for free’. He and his family can travel on any AirAsia flights for free. And this privilege still stands,” he added.
Fernandes said he had utilised the travelling privilege given by MAS for about seven times on international flights in the past two years. However, Jala has never utilised the privilege given by AirAsia.
“I never used it for domestic flights; we have our own airline. It is no big deal if you want to take it (travelling privilege) away. I was just surprised that even MAS’ unions and its workers know about me getting discounts,” Fernandes added.
In the letter, Jala told Fernandes that MAS’ decision to withdraw the privilege was a result of the anger among its unions and workers over Fernandes’ consistent criticisms of MAS.
“We have received a lot of letters of protest from many MAS staff regarding your travelling privilege in the wake of your negative statements about MAS.
“Many of our staff feel extremely hurt and frustrated with what they read in the news. The sense of unhappiness among our staff is growing and the pressure from the unions is mounting by the day,” Malaysiakini reported, quoting Idris.
“Left with no choice, the management team decided it would be best to withdraw your travelling privilege with immediate effect beginning June 1, 2008.”
On that note, Fernandes said Jala was “hiding behind the unions” because “MAS staff treat me very well.
“If they (MAS staff) feel hurt, what about the hurt done to AirAsia staff on the routes issue?” he asked. AirAsia has long been lobbying for open competition, particularly on the full opening of the Kuala Lumpur-Singapore route, without which he feels AirAsia was deprived of a level playing field.
“This is competition. There is nothing personal. If MAS wants to take it personal, I’m fine with it,” he added.
Meanwhile, in an emailed statement, MAS stressed that it withdrew the travel privilege given to Fernandes due to “growing employee dissatisfaction”.
“We have provided the travel privilege out of goodwill since 2006 in response to Fernandes’ request for interline facility for his own travel on our international routes although AirAsia does not have an interline agreement with Malaysia Airlines.
“According to industry practice, only airlines with interlining agreements will consider granting such travel privileges for airline employees,” Jala said.
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