Airline Company bought for Rs.10
A well-known airlines company was bought for just Rs 10. While Rs 500 crore is required to buy an aircraft, a whole airline company was sold for just Rs 10.
Let us know when and how this happened.
Let us know when and how this happened.
There was one person, Tony Fernandes, who was half Indian and half Portuguese. He studied at the London School of Economics, London's finest business school, and then started working at Warner Music.
This company was running at a huge loss and Tony Fernandes, with his understanding, freed the company and brought it into profit.When he was posted in Warner Music's headquarters in Malaysia, the company was then integrated with America Online. Fernandes was not happy and quit his job.
He was greatly interested in the aviation business. That is why he applied for aviation license in Malaysia in 2001 but he did not get the license because he did not have the money to run an airline company.
He was greatly interested in the aviation business. That is why he applied for aviation license in Malaysia in 2001 but he did not get the license because he did not have the money to run an airline company.
At that time, the Prime Minister of Malaysia, Dr. Mataheer Mohammad was watching all this closely. He was extremely pleased with Tony Fernandes, seeing how he pulled out losses from a company like Warner Music.
He met Tony Fernandes and explained to him that a license is needed to start a new airline company but the airline company that is already in business does not need a license if it is purchased because that company already has There is a license.
He met Tony Fernandes and explained to him that a license is needed to start a new airline company but the airline company that is already in business does not need a license if it is purchased because that company already has There is a license.
On this, Tony Fernandes said that he does not have enough money to buy an airline company.
At this point the Prime Minister started laughing in Malaysia and he talked about selling Malaysia's state-run airline 'Air Asia' to Tony Fernandes, for which he asked Tony for just 1 ringgit, i.e 10 rupees.
There was a huge burden on the government to run a loss-making company like Air Asia, so the Prime Minister wanted to sell Air Asia.
At this point the Prime Minister started laughing in Malaysia and he talked about selling Malaysia's state-run airline 'Air Asia' to Tony Fernandes, for which he asked Tony for just 1 ringgit, i.e 10 rupees.
There was a huge burden on the government to run a loss-making company like Air Asia, so the Prime Minister wanted to sell Air Asia.
Both of them were done but there is one more thing. He said that Tony Fernandes would get Air Asia for just Rs 10, but with this the company would get a loan of Rs 11,000 crore which Tony would have to handle.
Tony sold his plush house and used the money that came from him as working capital, bringing Air Asia from negative margin to profit margin in just 1 year (in 2002) and all the debt in a few years Has paid off.
Tony sold his plush house and used the money that came from him as working capital, bringing Air Asia from negative margin to profit margin in just 1 year (in 2002) and all the debt in a few years Has paid off.
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