Tony Steps Aside As Airasia Boss
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MUMBAI | WEDNESDAY, 5 FEBRUARY 2020 COMPANIES 5 . < Tony steps aside as AirAsia boss Chairman Kamarudin Meranun, too, relinquishes post temporarily over links to bribery scandal CHARLOTTE RYAN, YANTOULTRA NGUI identified it as the Caterham Formula & ASANTHA SIRIMANNE 1 team, founded in 2009 with London, 4 February Nasarudin Nasimuddin, chairman of car assembler Naza Group. They said irbus SE and AirAsia, the dis- the team made no profit and “was count airline built by Tony eventually disposed for £1”. A Fernandes, were inseparable for The July 2014 Farnborough deal that years, with the boisterous aviation exec- produced such fraternal bonhomie — utive gorging on ever-larger aircraft for 50 A330 wide-bodies — was sup- orders to become the manufacturer’s posed to trigger an additional $55 million biggest customer for single-aisle jets. payment, though it was never received, That happy marriage ended in acri- according to the prosecutors. mony last week after Airbus admitted to Four days after the order announce- illegally trying to sway plane sales and ment, an AirAsia executive emailed a agreed to a record $4 billion bribery set- senior Airbus employee saying that tlement. By Monday, Fernandes stepped “instead of sponsorship we want to put away from the Malaysian airline he it as a grant.” The A330 purchase was bought in 2001 and turned into one of the finalized in December, but by then the best-known brands in Asian aviation. "Caterham F1, the company alleged to have been sponsored strategy and marketing department at Fernandes was one of Airbus’s most improperly by Airbus, was at the relevant time a Formula 1 racing the center of the Airbus corruption was loyal customers, a fixture at air shows team that had gone round the globe promoting amongst others no longer in a position to fulfill its com- where he’d make a splash with huge AirAsia, AirAsia X, GE and Airbus... Throughout the period we mitments. “We have kept our side of deals while bucking the stodgy formal- were shareholders in Caterham, the company made no profit the deal,” the AirAsia executive ities of traditional business. Among his and was eventually disposed of for 1 pound sterling in 2014. emailed. “Pls don’t let us down”. most memorable moments was the From start to finish, this was a branding exercise and not a In all, corruption dating back 13 signing of the European company’s venture to make profit” years boosted profit at Airbus by more biggest order at the 2014 Farnborough than $1 billion, prosecutors said in expo, where he exchanged man-hugs Tony Fernandes (right) and Kamarudin Meranun court documents. with legendary, since departed sales Fallout from the scandal has already After stepping aside as CEO and chairman of AirAsia, respectively chief, John Leahy. rippled across the globe. Colombia’s Now a corruption probe that has rico- Avianca Holdings SA said Monday it cheted through Airbus for almost four tions as part of its settlement, Malaysia’s first low-cost carrier and its had retained a law firm to conduct an years, claiming the scalps of many senior declined to comment. explosive growth across the continent independent internal investigation staff, is coming for its airline counterparts. Shares of AirAsia tumbled as much coincided with unprecedented demand into the carrier’s relationship with Fernandes will leave his role as chief exec- as 12 per cent Tuesday, after losing 10% for air travel in developing nations. Airbus, and whether it was the victim of utive officer of AirAsia for two months of their value on Monday. Fernandes Fernandes then ventured into oth- wrongdoing. Taiwan’s chief prosecu- while the government examines corrup- and Meranun are still the company’s er businesses including hotels, insur- tor started investigations of former tion claims, according to a statement biggest investors through Tune Group. ance, telecommunications and motor executives in charge at now-defunct Monday. Chairman Kamarudin Meranun “AirAsia is clearly a major Airbus racing. In 2011, he took control of the TransAsia Airways, which was also also stepped down, in a sign of further customer,” said Sash Tusa, an aero- Queens Park Rangers soccer club in the named in the documents, a prosecutor repercussions from the bribery case. space and defense analyst at Agency UK. Two years later, he hosted an Asian said by phone Tuesday. Fernandes, 55, who is already fac- Partners in London. “At times they version of The Apprentice reality show. In Sri Lanka, prosecutors are seek- ing corruption charges in India, and have given the impression of ordering Prosecutors at the UK’s Serious ing the arrest of the state-owned air- Meranun on Monday denied allega- aircraft at an exceptional rate.” Fraud Office said Airbus paid $50 mil- line’s former top boss and his spouse. tions of wrongdoing, saying they stood After starting his career in Richard lion in sponsorship to a sports team The attorney general’s office said down to ensure a full and independent Branson’s Virgin Group in the UK, jointly owned by two AirAsia executives Kapila Chandrasena, the ex-CEO of investigation. They added in a news- Fernandes returned home to Malaysia as a reward for an order of 180 aircraft, SriLankan Airlines Ltd., and his wife, paper op-ed Tuesday that a Formula 1 and teamed up with Meranun to buy an later amended to 135. Priyanka Niyomali Wijenayaka, were sponsorship deal which was the sub- ailing and indebted AirAsia for 1 ringgit. The executives and the sports team suspects in a money-laundering case ject of the Airbus accusations was “a Affable and almost always casually weren’t named in the case, but AirAsia linked to aircraft sales at Airbus. branding exercise” and not a venture dressed, Fernandes was rarely seen over the weekend called the sponsor- Sri Lankan police were ordered to to make money. Malaysia’s anti-graft without a grin and a red baseball cap ship “a well-known and widely publi- obtain an arrest warrant, according to agency said Saturday that it was look- bearing the AirAsia logo. Like Branson cized matter bringing branding and a statement Monday. Chandrasena did- ing into corruption at AirAsia. Airbus, before him, he was never shy of the other benefits to Airbus.” Fernandes n’t respond to multiple calls seeking which admitted to the SFO’s allega- limelight. AirAsia would become and Meranun in their op-ed article comment. BLOOMBERG Henkel steps up investment in adhesives VIVEAT SUSAN PINTO ment of ~400 crore. The plant, also sumer adhesive space, in particular, he petitors globally and the collaboration Mumbai, 4 February Henkel’s largest adhesive manufactur- said, was an area that Henkel was eye- with Pidilite will see its portfolio avail- ing unit in the country, is located near ing closely for future growth. able in India, Sri Lanka, Bangladesh After exiting fast-moving consumer Pune in Maharashtra. “India is an important emerging and Nepal, experts tracking the market goods (FMCG) segment in India a few Besides its manufacturing facilities, market, with tremendous growth said. years ago, German major Henkel has Henkel also has an innova- opportunity for our adhe- Pidilite has also stepped into areas been quietly ramping up its presence in tion and product develop- Invests ~400 sives business. I will not such as floor coatings, wood finishes adhesives, a business that gives it near- ment centre and a flexible crore in eighth exclude moving into con- and specialised water proofing in ly ~2,500 crore in revenue. While rival packaging academy in the plant in India sumer adhesives in the recent years using acquisitions and JVs Pidilite is best known for its consumer- country for its adhesives launched future, given that we would as an entry point. centric brands such as Fevikwik and business. on Tuesday like to see India get into the Auris said the India business of Fevicol, Henkel is strong in the indus- Jan-Dirk Auris, member top five markets for Henkel Henkel had been growing at a clip of trial adhesives segment, providing of the management board at Henkel globally in the next few years,” he said. 10-11 per cent annually, which it is solutions to sectors such as automo- AG, said the plan was to push India up The statement acquires significance expected to maintain in the future. The tive, metals, packaging and aerospace. the pecking order of markets in terms since Pidilite has been strengthening its eighth unit would not only cater to the On Tuesday, the company launched of top line from its current 10th posi- presence in industrial adhesives, tying domestic market, he said, but would is eighth plant in India, which is its first tion, using acquisitions, joint ventures up with German player Jowat recently. also take care of needs in West Asia, multi-technology unit, at an invest- and alliances as way forward. The con- Jowat is counted among Henkel’s com- Africa and South Asia. .