JuliusWong 0 Report post Posted January 27, 2015 Azran's last day is expected to be this Friday Posted on 27 January 2015 - 05:40am By: Presenna Nambiar PETALING JAYA: Financially troubled AirAsia X Bhd's CEO Azran Osman Rani, who led the start-up team that developed its business plan, has resigned and is currently on garden leave while serving out his notice, according to sources. His last day is expected to be this Friday. Azran was appointed CEO in July 2010. His initial contract of employment which was for a period of three years, has since been extended by another three years, from July 4, 2013. Azran is credited with leading the start-up team that developed the business plan, raised capital, secured relevant licences and approvals, acquired aircraft and launched its inaugural flight to the Gold Coast, Australia in November 2007. There was no indication on what Azran would be doing, though it is unlikely that he will be joining another airline. Talk is that he is expected to re-enter the management consultancy industry. Azran started out in management consultancy and served a three-year tenure as associate partner in international management consultancy McKinsey Company between 2000 and 2003. Rumours of Azran's departure has been going around for months now reaching a peak when the group announced that it had made its biggest losses yet since being listed on the stock exchange around a year ago. AirAsia X, which posted its fourth consecutive quarterly loss and its worst showing since its listing in July 2013 announced that it would cut aircraft delivery to 15 from 24 planned over the next three years, sell two aircraft on order and execute more sale and leaseback deals in an effort to bolster its finances last November. Last week Azran reportedly denied reports that he was leaving the airline. However, industry sources say that Azran has not been at the helm of the airline for a while now, which had led to the appointment of Benyamin Ismail, who was previously group head of investor relations for AirAsia, as deputy CEO. The source further added that Robert Milton, a shareholder of Aero Ventures Sdn Bhd, one of the promoters of the initial public offering (IPO) of AirAsia X in 2013, is expected to come in as group CEO of AirAsia X to oversee not only its operations in Malaysia but also its hubs in Thailand and Indonesia. Aero Ventures, the founder of AirAsia X Bhd, which counts Tan Sri Tony Fernandes and Milton as its shareholders ceased being a substantial shareholder in the group on April 17, 2014. Aero Ventures held a 52.2% stake in the carrier prior to its IPO. It is also understood that the consolidation of operations at AirAsia and AirAsia X as reported last week, have led to a number of staff being laid off at group level. Last week alone some 36 staff were laid off and a management committee meeting was held on Sunday to identify other potential redundancies. AirAsia group did not respond to queries sent as at press time. AirAsia X closed trading yesterday unchanged at 67.5 sen. Source: http://www.thesundaily.my/news/1308025 Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted January 27, 2015 I wonder what Robert Milton can do that Azran can't? Share this post Link to post Share on other sites
Kenneth Chong WT 0 Report post Posted January 27, 2015 Bye Azran...so sad... Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted January 27, 2015 In a twist of event, Azran actually came out to deny it (again) a few mins ago..... AirAsia X CEO denies quitting KUALA LUMPUR, Jan 27: AirAsia X Bhd chief executive officer Azran Osman Rani today denied that he’s quitting the budget long haul carrier. When contacted over the rumour, he replied in a short phone message: “Was a surprise to me too!” A local English daily had earlier reported that Azran has resigned and is on leave while serving out his notice. The report had said that Azran’s last working day would be this Friday. Read more: http://www.therakyatpost.com/business/2015/01/27/airasia-x-bhd-ceo-resigns/#ixzz3Pz6gva86 Share this post Link to post Share on other sites
flee 5 Report post Posted January 27, 2015 It is puzzling why there is so much media speculation on the fate of the Airasia X CEO. A lot of what he did there has been good. It is only in the recent past that market conditions have gotten bad and D7 just needs to ride it out without burning too much cash. I would say a large proportion of the blame has to go to MAHB! The delay in completing klia2 meant that D7 cannot expand as quickly as it should. After years of stunted growth, it was ready for an explosive growth last year, when klia2 opened. Unfortunately, the high price of oil put paid to that and that was a large part of the reason why things did not go as planned. There are other factors too - like MH throwing prices in desperation! But we are seeing that MH fares are now at a higher level compared to last year. Throwing prices is not something that is sustainable. Now the price of oil has halved and 2015 would be a great year for D7 to expand again. It now has sufficient aircraft and all it needs is a little patience from analysts! Azran is also heavily invested in Airasia X - he has a lot of shares (from the IPO) and it would be in his best interests if Airasia X became a successful company! I believe that those who own and call the shots at Airasia X should not distract themselves with another management change. That may set back Airasia X's return to profitability as a new CEO will need some time to learn the ropes before he or she gets to do something constructive. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted January 27, 2015 Last week alone some 36 staff were laid off and a management committee meeting was held on Sunday to identify other potential redundancies. Source: http://www.thesundaily.my/news/1308025 When contacted over the rumour, he replied in a short phone message: “Was a surprise to me too!” Read more: http://www.therakyatpost.com/business/2015/01/27/airasia-x-bhd-ceo-resigns/#ixzz3Pz6gva86 Am I reading too much in between ?! Share this post Link to post Share on other sites
flee 5 Report post Posted January 27, 2015 As a public company, Airasia X wil need to issue a statement to Bursa Malaysia. Otherwise, investors won't have the real information from the company. Share this post Link to post Share on other sites
jani 0 Report post Posted January 27, 2015 My friends in the Investment industry say that he is gone. Share this post Link to post Share on other sites
Cire 0 Report post Posted January 27, 2015 Low passenger traffic because of slowing down of Malaysia's economy? Not many who wants to travel now? Or perhaps they preferred to fly on other airlines? The Government did advises the country's industries not to lay off staffs as the country is not in depression but only slowly moving - "ekonomi berjalan perlahan sahaja". Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted January 28, 2015 AirAsia X CFO also on way out? Posted on 28 January 2015 - 05:38am PETALING JAYA: AirAsia X Bhd CFO Chew Eng Loke, appointed on Sept 1, 2014, has also resigned according to Maybank IB Research in its report commenting on news of CEO Azran Osman Rani's departure yesterday. "We heard the CFO has resigned as well," analyst Mohshin Aziz said in his note to investors. While saying that news of Azran's departure does not come as a big surprise as the rumour has been circulating for the past three months, he did however say that for the CFO to leave only after four months into his job, a big vacuum has been created. "These uncertainties do not bode well for the sentiment on the stock," Mohshin said in his note. Maybank IB Research has maintained its hold call on the stock, with an unchanged target price of 62 sen. According to media reports, Azran continues to deny that he is on his way out. AirAsia group and AirAsia X however, have been conspicuously silent on the matter and are yet to respond to queries from SunBiz. AirAsia X's shares closed 2.2%, or 1.5 sen up yesterday at 69 sen. On a separate issue, RHB Research noted that as competition continues to intensify, it would be unlikely that AirAsia X will be able to afford a further cut in yields as this could deepen the risk of incurring losses. "We believe the removal of the fuel surcharge could be offset by higher air fares for the airline," it said. RHB Research said the overall impact will work to lower its FY15 overall yield growth estimate to 6% from 8%. It said that as a result of the lower jet fuel costs the budget long haul carrier could record a small core net profit in FY15. RHB Research kept AirAsia X at a "sell" with a 61 sen target price. "We raise our earnings estimates but pare down our projected yield growth due to the lower jet fuel costs," it said. Meanwhile PublicInvest Research has maintained an "outperform" call on AirAsia Bhd following the move to abolish fuel surcharge effective yesterday to reflect the global weakness in fuel prices. "We view the removing of fuel surcharge this time positively as it will reduce the air fare charge to consumers hence it will help to encourage passenger travel and improve its load factor, especially after recent air incidents of QZ8501 and towards GST implementation in April 2015 as consumers are more cautious on spending," it said in a research note. PublicInvest noted that although removing fuel surcharge means putting yields on downward pressure, it expects savings from jet fuel prices is enough to make up the loss in revenue. Jet fuel price has now fallen to US$60 (RM216.20) per barrel, the lowest in the past five years. It said that AirAsia could lose some RM700 million in revenue in FY15 from the fuel surcharge cut. However, on the average jet fuel prices at US$75 per barrel for FY15 and US$85 per barrel for FY16, AirAsia could save about 43% of fuel cost, which would be enough to offset the loss in revenue. Public Investment Bank maintained its "outperform" rating on the stock, with a reduced target price (TP) of RM3.22 from RM3.30. - See more at: http://www.thesundaily.my/news/1309306#sthash.VZOEtUKo.dpuf Share this post Link to post Share on other sites
flee 5 Report post Posted January 28, 2015 Changes at AirAsia X helm, senior staff leaving, says report Following the tragedy involving Indonesia AirAsia Flight 8501 which crashed into the Java Sea last month, the popular budget carrier is in the limelight in Malaysia over talk that senior executives are leaving the AirAsia group. The New Straits Times reported today that AirAsia X chief executive Azran Osman Rani, who was handpicked by group CEO Tan Sri Tony Fernandes to helm the long-haul subsidiary of the budget carrier, is serving out his notice. The English-language daily reported that Azran, when contacted, did not confirm or deny his departure. But, he was quoted as saying that he was staying put in Air Asia X, which he added was expected to turn around. He added that he was excited about progress in AirAsia X after what he termed as an “exceptional” 2014, given market conditions and the incidents in the Malaysian aviation industry. National carrier Malaysia Airlines Flight MH370 disappeared under mysterious circumstances on March 8 last year when the aircraft, carrying 239 people, disappeared en route from Kuala Lumpur to Beijing. It is believed to have ended in the Indian Ocean although international search efforts have failed to find any wreckage. On July 17, MAS suffered another blow when flight MH17 from Amsterdam was shot down over Ukrainian air space, killing all 298 people on board. According to Azran, demand from China, one of its biggest markets, had softened, but he added that this trend had turned around. "Things are working out well for AirAsia X. We are excited to show the progress that we have achieved in the fourth quarter of 2014," he said, adding that the results will be announced in February. - See more at: http://www.themalaysianinsider.com/business/article/changes-at-airasia-x-helm-senior-staff-leaving-says-report#sthash.7pbK1KCW.dpuf Share this post Link to post Share on other sites
BC Tam 2 Report post Posted January 29, 2015 I would say a large proportion of the blame has to go to MAHB! The delay in completing klia2 meant that D7 cannot expand as quickly as it should. After years of stunted growth, it was ready for an explosive growth last year, when klia2 opened. Unfortunately, the high price of oil put paid to that and that was a large part of the reason why things did not go as planned. On other side of coin, the possibility could be that those charged with route/traffic projections and therefore expected fleet expansion had been wearing rose tinted glasses a few hues too deep - and klia2 fiasco had merely delayed the (inevitable) problems we see nowadays Furthermore, I believe expansions of the Asean affiliates have not been as robust as envisaged initially either Share this post Link to post Share on other sites
BC Tam 2 Report post Posted January 29, 2015 Trading in shares of Malaysian long-haul budget carrier AirAsia X will be suspended today pending a "material announcement", the company said in an announcement to the stock exchange. ..... and could announce the departure of two key executives, Reuters reported yesterday. – Reuters, January 29, 2015. from: http://www.themalaysianinsider.com/business/article/airasia-x-says-shares-to-be-halted-tomorrow-ahead-of-material-announcement So, it's more or less as speculated then ? Share this post Link to post Share on other sites
KK Lee 5 Report post Posted January 30, 2015 There is no smoke without fire, 90% rumours in this country have been proven correct especially those denied by concerned parties. Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted January 30, 2015 It's confirmed - Azran is out http://www.thestar.com.my/Business/Business-News/2015/01/30/Kamarudin-is-AirAsia-X-new-group-CEO/?style=biz&utm_source=dlvr.it&utm_medium=twitter Share this post Link to post Share on other sites
Mulyadir Fitri 0 Report post Posted January 30, 2015 (edited) I am a bit sad by this. For me he did a good job while at the helm of D7. It's just that the long haul LCC model is such a tricky business model to perfect. Still remember some of us here questioning his appointment sometime back as he was from Astro, but he quickly settled down and proved us wrong. Wishing you the best in your future endeavour Mr Azran! Edited January 30, 2015 by Mulyadir Fitri Share this post Link to post Share on other sites
Mohd Azizul Ramli 2 Report post Posted February 24, 2015 The main reason for the resignation/termination. D7 lost RM 600 million in 2014. http://www.themalaysianinsider.com/business/article/airasia-x-posts-pre-tax-loss-of-rm605.18-mln-for-2014 Share this post Link to post Share on other sites
KK Lee 5 Report post Posted February 24, 2015 The main reason for the resignation/termination. D7 lost RM 600 million in 2014. http://www.themalaysianinsider.com/business/article/airasia-x-posts-pre-tax-loss-of-rm605.18-mln-for-2014 CEO was a fall guy, believe the bod should take equal if not more responsibility. Believe d7 need mix fleet to optimize yield. Share this post Link to post Share on other sites
flee 5 Report post Posted February 25, 2015 CEO was a fall guy, believe the bod should take equal if not more responsibility. Believe d7 need mix fleet to optimize yield. Yes, they need to demonstrate that some action was taken to correct the situation... D7's Q4 and full year results here: http://www.malaysianwings.com/forum/index.php?showtopic=20284 Share this post Link to post Share on other sites
flee 5 Report post Posted February 25, 2015 AirAsia X appoints new CFO http://www.theedgemarkets.com/my/article/airasia-x-appoints-new-cfo Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted February 26, 2015 So, in the end what was rumoured at the first place was all correct: Both ex CEO and CFO were indeed leaving. There is a talk of possibility of de-listing D7 to be reclassify it as support unit for AirAsia, instead of a separate entity. Best of luck for AirAsia X, they need a lot of it. Share this post Link to post Share on other sites
flee 5 Report post Posted February 26, 2015 So, in the end what was rumoured at the first place was all correct: Both ex CEO and CFO were indeed leaving. There is a talk of possibility of de-listing D7 to be reclassify it as support unit for AirAsia, instead of a separate entity. Best of luck for AirAsia X, they need a lot of it. Yes, no smoke without fire. Strange that there is talk about delisting when they are embarking on a rights issue and TF hyping up their upcoming Hawaii and European routes on Twitter. Also Thai Airasia X has achieved profitability earlier than expected - so maybe delisting was considered as one of the options available. Looking at the Q4 2014 accounts, D7 actually had an operating profit. So it is on the way to recovery - only the RMs depreciation and fuel hedging losses pulled it into a net loss situation. Share this post Link to post Share on other sites
flee 5 Report post Posted September 24, 2015 AirAsia X appoints permanent CEO Date of change 01 Sep 2015 Name MR BENYAMIN BIN ISMAIL Age 38 Nationality Malaysia Type of change Others Designation Chief Executive Officer Description Confirmation as Chief Executive Officer. Remarks : The Board approved on 22 September 2015 and the letter of appointment also dated on 22 September 2015 which specified that the Chief Executive Officer's appointment to take effect from 1 September 2015. Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/4873917 Share this post Link to post Share on other sites
Vicknesh PS 0 Report post Posted September 25, 2015 Wow 38, hopefully he will make his name as a young hotshot CEO. Congrations. He has a huge uphill task. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted September 25, 2015 Wow 38, hopefully he will make his name as a young hotshot CEO. Congrations. He has a huge uphill task. Azran Osman Rani was also 38 years old when he was appointed D7 CEO previously. Share this post Link to post Share on other sites
