Malaysian tycoon Tony Fernandes has stepped aside as the chief executive officer (CEO) of AirAsia, the region's biggest budget airline.
Tony Fernandes announced that he will be stepping aside as CEO for at least two months as authorities probe into bribery allegations against AirAsia. The airline has denied the claims.
According to the allegations, AirAsia received a bribe of $50 million to purchase 180 planes from European manufacturer Airbus. These claims emerged following Airbus’ decision to pay $4 billion in fines to settle accusations of corruption.
Malaysia’s anti-graft agency announced that it has started its own investigation into the allegations. The airline has expressed its full cooperation with Malaysia’s Anti-Corruption Commission, which partnered with Great Britain’s Serious Fraud Office (SFO) to examine the claims.
Both Fernandes and AirAsia chairman Kamarudin Meranun said they will step aside while authorities investigate the bribery allegations. Fernandes will remain as an adviser to AirAsia.
In a statement, the executives said they were stepping aside ''to facilitate a full and independent inquiry'' and would be ''relinquishing our executive roles with immediate effect''.
The airline’s shares declined by as much as 11% following the announcement. On Monday, AirAsia shares fell to as low as 1.27 Malaysian Ringgit, their lowest level since May 2016, with AirAsia X declining by 12% to hit an all-time low.
It further declined on Tuesday following Fernandes' announcement.
Tony Fernandes, the entrepreneur
Fernandes purchased AirAsia from the Malaysian government for less than a dollar in 2001, following the backlash of the September 11 attacks on the airline industry. The airline had $11 million in debt back then.
He also co-owns the Queens Park Rangers (QPR) football club in the UK as well as co-founded the now-defunct Caterham Formula 1 racing team.
He is now one of the wealthiest men in Malaysia, with a net worth of $530 million, according to the Forbes rich list.
