Skift Travel News Blog

Tony Fernandes has stepped down as the acting group CEO of Capital A’s long-haul budget carrier AirAsia X citing “other commitments,” the airline announced in a note to investors on Monday.

“I’m now going to focus on delivering significant value to shareholders of Capital A, including the AirAsia Aviation Group, aviation services, logistics, travel, fintech and the e-commerce lifestyle platform,” Fernandes said in a press statement.

Having served as the non-independent non-executive director of AirAsia X, Fernandes stepped in to the role of acting group CEO in July this year.

Mahmood Fawzy has now been appointed as the independent non-executive director of Thai AirAsia X.

AirAsia X had entered a court-overseen debt restructuring process during the pandemic. The airline completed the debt restructuring in March.

Fernandes, in a press statement, mentioned that his job had been to restart AirAsia X and bring it back to profitability and growth after the hibernation. “I am happy that this has been accomplished with a very edifying plan for 20 aircraft for the AirAsia XGroup — 13 aircraft for AirAsia X and seven for Thai AirAsia X.”

He went on to note that following the restructuring the airline has improved the cost structure, and created a cargo business, which has contributed about 20 percent to the airline’s revenue during the pandemic and will continue to play a vital role in its recovery.

The airline in a statement in August had noted that it would be ramping up flight frequencies and would return to daily services to most destinations before 2023, with optimised aircraft utilisation of 15 hours by December.

The future commercial use of electric vertical takeoff and landing vehicles, or eVTOLs, will be “highly challenging,” according to former Spirit Airlines CEO Ben Baldanza, who’s a fan of the technology’s potential, but thinks industrial and military applications would take place first.

Baldanza, writing in Forbes about these helicopter-like electric vehicles, said they indeed face tech challenges regarding battery life, the intent to operate in congested areas, a lack of trained pilots, and the costs would preclude eVTOLs becoming a popular transportation alternative anytime soon.

Instead of carrying passengers, these electric flying vehicles would likely first see their initial applicability in carrying cargo and transporting packages, Baldanza wrote.

Transporting equipment during battles may also be an initial preferred use for electric vertical takeoff and landing vehicles, he wrote.

“Timing of flights likely would not conflict as much with other airspace uses, and utilization can be improved,” Baldanza wrote. “Also, industrial and military uses won’t be especially helpful in only the biggest metro areas, meaning that some issues will be easier to work out. This makes sense, and this eVTOL equipment will compete with smaller drones for some operations.”

Special purpose acquisition company mergers have been a popular funding mechanism for electric vertical takeoff and landing vehicles, Baldanza wrote, “even though revenue streams may be many years away.”

And Baldanza, who pioneered everything from charging for boarding passes to overhead bin space during his 11 years (2005 to 2016) as CEO of Spirit, knows a few things about revenue streams.