AirAsia’s funding woes test how far Malaysia will go to protect its budget champion

WHEN British billionaire and Virgin Group founder Richard Branson put his name and money behind AirAsia X in 2007, he was backing Tony Fernandes – a man Branson had known since the Malaysian entrepreneur began his career at Virgin’s music and media business in London nearly two decades earlier.

Branson’s investment in AirAsia X was a bet on Fernandes as much as on the fledgling long-haul budget carrier.

With his knack for spotting underserved markets, Fernandes was eager to capture the segment of travellers who wanted to fly farther but could not afford conventional fares.