By KINIBIZ
AirAsia X Bhd’s chief executive officer (CEO) Azran Osman-Rani has denied submitting his resignation letter and that he is on the way out of the airline.
“I definitely did not resign and I am still running the airline. I have not been told anything. I don’t know where the stories are coming from. Let’s see how all of this plays out.”
In a separate e-mail to KiniBiz he said: “If I had indeed resigned, that would be a Bursa (Malaysia) announcement. But no announcement, right?” There was no announcement on Bursa Malaysia.
Asked if he has talked to AirAsia founder Tony Fernandes about this, he said that Fernandes is still in Davos and it is early morning there.
KiniBiz could not get in touch with Fernandes while AirAsia co-owner Kamarudin Meranun’s mobile phone was not answered.
Meantime sources at AirAsiaX continue to maintain that he is on the way out, adding that the owners of AirAsiaX want him to take responsibility for the losses
“He hasn’t said goodbye to his staff, but he is definitely on the way out,” they said.
This has led to speculation that there are moves to force Azran out in favour of another CEO. “He is being pushed out,” one source said.
The sources also said that Benyamin Ismail, previously the company’s group head of investors and now deputy CEO, has been taking charge of AirAsia X in the interim. There is “strong talk” that Benyamin could be in line to take over Azran’s position from Feb 1.
“Benyamin has been in all of the company’s meetings,” said AirAsia X sources.
Rumours of Azran’s departure have been circulating for some time. Previously Azran told KiniBiz that “it was not appropriate to comment” on the matter.
Local newspaper The Sun ran a story today on Azran’s resignation, citing sources within the company.
The Sun reported that Azran is currently on “gardening” leave until his last day this Friday. He was appointed as CEO of the airline in 2010 and his contract is only scheduled to expire next year in 2016.
Robert Milton
The story in The Sun suggests that Robert Milton, the former president and chief executive officer of Air Canada and director of AirAsia Bhd since 2013, is also a strong contender to replace Azran.
Azran was handpicked by AirAsia group CEO Tony Fernandes to run AirAsia X. Azran was hired from satellite television provider Astro where he was senior director of business development. Before Astro he held positions at management consultancies McKinsey & Company and Booz Allen Hamilton.
AirAsia X is a long-haul budget carrier and one of the first of its kind when it took to the skies in 2007 plying routes too long for AirAsia’s narrowbody aircraft to fly economically.
The airline focuses on flights of more than four hours between its Kuala Lumpur hub and major cities in Australia and North Asia. Aggressive expansion has grown its fleet of widebody aircraft to 25 strong in a span of just seven years, almost all of them Airbus A330-300s.
Since late 2013, overcapacity and cutthroat competition in the industry has made it difficult for AirAsia X to shake off losses.
Last November, AirAsia X reported a third quarter operating loss of RM140 million and an even larger net loss of RM211 million after accounting for finance costs and foreign exchange losses.
It was the fourth consecutive loss-making quarter for the airline.
Analysts had said the root of the airline’s financial troubles is a combination of poor yields from overcapacity in the market and a dip in demand following the twin Malaysia Airlines tragedies involving flights MH370 and MH17 last year.
A recovery could be possible if the new business plan can be executed as planned. AirAsia X also stands to benefit if crude oil prices, which have fallen by 50% over the past few months, continue to stay low.
AirAsia X shares are listed separately from parent AirAsia on Bursa Malaysia following its July 2013 initial public offering.
Shares of the company opened trading at 67 sen today, down almost 1 sen.
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