Wednesday, June 29, 2022

Capital A bosses paid RM14 million and change in 2021

This is a massive increase from what they received in 2020.

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Tony Fernandes and Kamarudin Meranun received salaries of more than RM14 million each for the 2021 financial year (FY2021) ending Dec 31, Capital A Bhd’s annual report shows – a huge increase from what they received in 2020.

This comes amid mounting criticism from members of the public still waiting to be refunded for flights cancelled due to the Covid-19 pandemic.

The report, published on April 29, said Fernandes – the CEO of Capital A, formerly known as AirAsia Group Bhd – received RM14,947,213 in addition to RM124,781 in allowances for meetings, travel and other matters.

Kamarudin, the executive chairman of Capital A, meanwhile received RM14,051,429.

This marked a sharp increase from the RM4.8 million they had received in FY2020.

In April 2020, Fernandes was reported as saying that he and Kamarudin would not receive a salary while AirAsia employees agreed to take a paycut of up to 75% due to the impact of the Covid-19 outbreak on the company’s financial performance.

In FY2021, Capital A recorded a drop in net loss, to RM3.11 billion from RM5.11 billion recorded the year before.

It earned RM1.73 billion in revenue, down from RM3.27 billion posted for FY2020.

AirAsia Group Bhd was rebranded as Capital A in January, as part of efforts to transform the company into an investment holding company with a portfolio of lifestyle and travel businesses instead of merely an airline.

Checks of Capital A’s quarterly financial performance for FY2021 show that the company recorded a net loss of RM767.42 million in the first quarter (Q1) ended March 31, 2021, followed by a net loss of RM580.06 million in Q2 ended June 30, 2021.

It continued to face pressure in Q3 and Q4, with net losses of RM887 million and RM884.09 million respectively.

Meanwhile, passengers who had purchased tickets from AirAsia X Bhd, its long-haul airline, continued to call for refunds for their cancelled flights.

Local and international travellers alike have been urging the management, including Fernandes, to return their money for flights scrapped as far back as two years ago.

Many have voiced dissatisfaction with the lack of refunds so far, warning that they are ready to boycott the airline if they do not receive their money back.

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