AirAsia: Kamarudin, Fernandes give up executive powers for two months

PETALING JAYA: AirAsia Group Bhd executive chairman Datuk Kamarudin Meranun and CEO Tan Sri Tony Fernandes will relinquish their executive positions temporarily in the wake of allegations that Airbus paid a US$50 million (RM205 million) bribe to win orders from the airline group.

The move, which takes effect immediately, will be for a period of two months or such other period that the company may deem fit, AirAsia said in a filing with the stock exchange.

At the same time, AirAsia has formed a non-executive independent board committee comprising the nonexecutive members of the board.

“The committee’s main objective will be to review the allegations therein so far as it concerns AirAsia, and to take any necessary action based on the review.”

The committee has decided that both Kamarudin and Fernandes will be retained as the group’s advisers in the next two months in view of the current difficult economic circumstances facing the airline industry.

“As advisers, they will not have executive authority within the group,” AirAsia said, adding that the duo will be redesignated as the non-independent non-executive board members

Tharumalingam Kanagalingam has been appointed as the group acting CEO in the interim.

Shares of AirAsia and AirAsia X Bhd took a beating yesterday, with the former tumbling as much as 16 sen or 11.2% to RM1.27 before closing 15 sen or 10.5% lower at RM1.28. AirAsia X was down 1 sen or 7.7% to 12 sen.

Rakuten Research said the sell-off in AirAsia was likely a knee-jerk reaction to the news, coupled with the coronavirus outbreak’s negative impact on sentiment.