ID :
31281
Thu, 11/20/2008 - 12:21
Auther :
Shortlink :
https://oananews.org//node/31281
The shortlink copeid
TUNE MONEY TO STEP UP AIRASIA'S PRESENCE IN INDONESIA & THAILAND, SAYS TONY
KUALA LUMPUR, Nov 20 (Bernama) - Tune Money Sdn Bhd plans to grow its business regionally, stepping up AirAsia Bhd's presence in Indonesia and Thailand, its director Tony Fernandes said Wednesday.
Refuting talks that the company was shrinking its businesses, he said: "It
is not the case. We want to grow regionally where AirAsia's footprint is. To do
that we think we require investments in the next two to three years worth RM20
million."
It was reported late last month that the company's senior management
had resigned and among the reasons given was that the company had decided to
dramatically downsize its business and slash staff cost by half.
The company's chief executive officer and chief financial officer were
among
those said to have resigned.
Tony said resignation was always in the plan with room for changes as well
in the system. "The system needs to be tweak and I want to make it more
marketing driven company."
He said Tune Money was not like AirAsia, a low cost carrier, where
everything had already been set up. "We bought an existing airline."
Tony holds 40 percent stake in Tune Ventures Sdn Bhd while the latter owns
44.38 percent stake in Tune Money.
Tony said that with the expansion plan, Tune Money was expected to chalk
RM14 million to RM15 million (US$1=RM3.60) in profit next year, wiping its
accumulated losses of RM10 million.
"We will make profit next year and decent profit in 2010 and 2011."
The company, which offers general insurance products, and prepaid Visa
cards would leverage more on Air Asia's businesses from now on, said
Tony.
In building up AirAsia, Tony said Tune Money has somewhat been
"forgotten."
Tony is a major shareholder of AirAsia through Tune Air Sdn Bhd, which
holds 30.7 percent stake in the carrier.
On the company's fund management business, Tony said that the segment would
be continued.
Tune Money had earlier expected to launch its first unit trust product in
June after its wholly owned subsidiary Tune Money Capital Sdn Bhd received the
license to start a fund management business from the Securities
Commission.
"It (the launch) is just going to be delayed. I don't think anyone wants
to invest in funds right now. So we will wait. But it is a great
opportunity."
He said the company also expected to launch it at the right time when the
market is near bottom.
"Timing is everything. There is no rush. Sometimes, we rush things and then
we have to spend time to clear it up. So I am a bit of a believer in taking your
time, building it properly and growing it aggressively."
Elsewhere, Tony said Tune Money would not see any changes in
shareholdings.
Besides Tune Ventures, other stakeholders in Tune Money include CIMB
Structured Investment which owns 25 percent, Kalimullah Hassan who
owns 8.21 percent, Lim Kian Onn 8.21 percent and Tune Money Employees Sdn
Bhd 2.25 percent and Kaneswaran Avili 1.5 percent.
Refuting talks that the company was shrinking its businesses, he said: "It
is not the case. We want to grow regionally where AirAsia's footprint is. To do
that we think we require investments in the next two to three years worth RM20
million."
It was reported late last month that the company's senior management
had resigned and among the reasons given was that the company had decided to
dramatically downsize its business and slash staff cost by half.
The company's chief executive officer and chief financial officer were
among
those said to have resigned.
Tony said resignation was always in the plan with room for changes as well
in the system. "The system needs to be tweak and I want to make it more
marketing driven company."
He said Tune Money was not like AirAsia, a low cost carrier, where
everything had already been set up. "We bought an existing airline."
Tony holds 40 percent stake in Tune Ventures Sdn Bhd while the latter owns
44.38 percent stake in Tune Money.
Tony said that with the expansion plan, Tune Money was expected to chalk
RM14 million to RM15 million (US$1=RM3.60) in profit next year, wiping its
accumulated losses of RM10 million.
"We will make profit next year and decent profit in 2010 and 2011."
The company, which offers general insurance products, and prepaid Visa
cards would leverage more on Air Asia's businesses from now on, said
Tony.
In building up AirAsia, Tony said Tune Money has somewhat been
"forgotten."
Tony is a major shareholder of AirAsia through Tune Air Sdn Bhd, which
holds 30.7 percent stake in the carrier.
On the company's fund management business, Tony said that the segment would
be continued.
Tune Money had earlier expected to launch its first unit trust product in
June after its wholly owned subsidiary Tune Money Capital Sdn Bhd received the
license to start a fund management business from the Securities
Commission.
"It (the launch) is just going to be delayed. I don't think anyone wants
to invest in funds right now. So we will wait. But it is a great
opportunity."
He said the company also expected to launch it at the right time when the
market is near bottom.
"Timing is everything. There is no rush. Sometimes, we rush things and then
we have to spend time to clear it up. So I am a bit of a believer in taking your
time, building it properly and growing it aggressively."
Elsewhere, Tony said Tune Money would not see any changes in
shareholdings.
Besides Tune Ventures, other stakeholders in Tune Money include CIMB
Structured Investment which owns 25 percent, Kalimullah Hassan who
owns 8.21 percent, Lim Kian Onn 8.21 percent and Tune Money Employees Sdn
Bhd 2.25 percent and Kaneswaran Avili 1.5 percent.
