Unlock all articles by subscribing to this international offer

All Access Weekly

Herald Premium, Viva Premium, The Listener & BusinessDesk
Pay just
$15.75
$2
per week ongoing
See all offers
Already a subscriber? Sign in here
NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • All Blacks
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Budget 2025
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Airlines

Air NZ's flying salesman

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
6 Jun, 2013 05:30 PM11 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Christopher Luxon. Photo /
Christopher Luxon. Photo /

Christopher Luxon. Photo /

Air NZ boss Christopher Luxon has sold everything from soap to icecream. Now he wants to sell tickets - lots more tickets. Aviation writer Grant Bradley reports from Cape Town.

The airline outsider in Air New Zealand boss Christopher Luxon doesn't like some of what he's seen at the annual gathering of global aviation leaders in South Africa this week.

Luxon forged a big career in the sometimes ruthless world of consumer goods sales in North America, and towards the end of the conference in Cape Town he said the aviation industry could be quite myopic.

"It's complex and addictive and people stay for a long time but the danger of that is that you get a groupthink and a mode of thinking that might need a bit of shaking."

Air New Zealand has an international reputation for thinking outside the square and Luxon said that from what he saw this week, that has put the airline in a good spot.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"It's quite exciting because if you're going to innovate and compete we shouldn't be afraid of being world class from New Zealand. We shouldn't be intimidated by any of the carriers, to be brutally honest."

The 42-year-old has two years' industry experience, first helping revamp Air New Zealand's international business, then taking the chief executive's job in January.

He's easy company: the non-drinker adroitly did the schmoozing at the International Air Transport Association meeting, which has a clubby, cosy feel, as Cape Town was battered by one of the worst winter storms in more than a decade.

And he's a quick learner: at a media event he easily handled a barrage of questions from international aviation journalists who can spot aircraft models from vast distances and talk in airline code.

Advertisement
Advertise with NZME.

And if Luxon didn't know it already, amid the furore over an aspiring flight attendant's tattoo, he's learned that he's running a big company in a small country.

Unilever sells to 2 billion people a day and finds itself in the occasional media scrum - including one he fronted over a raunchy deodorant commercial - but he said he was a little surprised how the tattoo issue dominated public conversation.

"The public dimension is a little bit more intense in New Zealand - there's a different level of profile than I had to deal with in Canada or the States but it's not unfamiliar - it's part of the responsibility of the role."

Luxon succeeded Rob Fyfe as chief executive and brings a different style; until now he has kept what he calls his "streamlined" head down and largely stayed out of the media. While Fyfe had a mercurial streak and helped build an airline with lots of sizzle, the methodical Luxon is now chasing sales.

Discover more

Travel

Asia: A word from the cheap seats

04 Jun 03:00 AM
Airlines

Fyfe on lookout for next big thing

03 Jun 05:30 PM
Airlines

Hold-out didn't stand much chance

05 Jun 05:30 PM
Airlines

Air NZ lifts stake in Virgin Australia

05 Jun 11:05 PM

As part of his "Go Beyond" strategy, the airline aims to sustainably double the average earnings of the past 10 years. He's on track this year, with underlying profit forecast at $235 million to $260 million, compared with the $94 million achieved in the previous year.

Fyfe acknowledges the differences between the two. He was also in Cape Town, working as an adviser to Panasonic's inflight entertainment division.

"Christopher came out of that American business system that's a very different kind of style, and I think it's really important that a new CEO has a style that is uniquely his own because people need to disconnect from the previous leadership."

LUXON'S 18-year career at Unilever took him to Australia, Britain, the United States and finally Canada, where he was in charge. He earned his stripes selling everything from Magnum icecreams to Persil washing powder, to retail giants such as Wal-Mart, and was hailed as a marketing superstar for defeating arch-rival Procter & Gamble in a global deodorant battle. It was at Unilever that he developed what he calls "sales literacy".

That's what he is introducing to the airline, which he said is world class in almost everything it does, apart from selling tickets.

Based on his fast-moving consumer goods (FMCG) background he's taking a more pragmatic approach, working with travel agents the airline has previously moved to circumvent. "We need to hunt in a pack as a tourism industry. That's why we're building relationships with the broader tourism industry because we can't do it alone and nobody else can either."

Advertisement
Advertise with NZME.

The airline's marketing team was now working with counterparts at Auckland and Christchurch airports - traditional foes over landing fees - and he was out talking to travel agents.

One agent, who did not want to be named, said he had met Luxon three times this year after failing to ever get a meeting with the airline before, adding that the new chief executive wanted to sell tickets through any channel, just as long as they were on Air New Zealand.

Luxon said New Zealanders at their worst were petty and squabbled over small amounts of money, but at their best were unbeatable.

Relationships with the travel agents have improved.

"It comes from a packaged goods background. At Unilever I would sit down with the top management of Wal-Mart and we'd agree a business plan for the coming year, not about how we would switch market share but how we could grow the market," he said. "I'm wanting to bring that same thinking. I have a sales and marketing literacy, a CEO of Air New Zealand should be out in the trade talking with the top management of our key trade partners.

"You can be very protectionist, very defensive and be very siloed but that's not the way of the future."

Advertisement
Advertise with NZME.

Luxon often refers to his consumer goods background, and two key appointments to his executive team have similar experience - one from Campbell's Soup and another from Procter & Gamble. He is keen to introduce more of what he learned at Unilever.

The big North American FMCG companies would "war game" what competitors were up to and how each would respond, and then counterpunch. He said he'd like to bring similar strategies at Air New Zealand.

FOR CHRISTCHURCH-born Luxon, a career in consumer goods was in the blood.

His father was a sales executive for Johnson & Johnson, his mother a psychotherapist and counsellor. Aged 7, Luxon and his family moved to Auckland where they lived in Howick, before returning to Christchurch where he finished high school.

As a teenager he met his future wife Amanda at a church youth group. He still goes to a non-denominational Christian church. "My faith is very important to me," he said.

At Canterbury University he completed a Master's in Commerce, majoring in business administration, and in his final year was recruited into Unilever's management trainee programme. Luxon was attracted to Unilever because of its size and business culture, but pounced when he heard of the opening at Air New Zealand's international operation - which he took with the understanding it would put him in the running for the top job.

Advertisement
Advertise with NZME.

"I feel very connected to the mission and the purpose of this company - I grew up in a world where I wanted to be a business guy and a lot of the business models when I grew up were property developers and wheeler-dealer types," he said.

While he could have worked in private equity, he said he chose to come back.

"It's not just about the money (his basic salary is $1.25 million) or about the title - who we are is a lot bigger than what we do."

While the language can be lofty, Luxon is essentially down to earth and has impressed others outside the airline - one person in the travel industry calls him "brilliant" - and from Air NZ headquarters the view is that he salesman

Luxon brings a different style to that of former Air NZ chief Rob Fyfe (pictured).

has tightened the lines of responsibility and accountability.

Advertisement
Advertise with NZME.

Rob Mercer, head of private wealth research at Forsyth Barr and a long-time Air New Zealand analyst, said Luxon had in a short time garnered a lot of support and was clear about where improvements lay.

"There's an attention to detail, Christopher gives you the impression he's a 24/7 guy. There have been strengths before him but now he's bringing in another level of capability with the global consumer [experience]."

THE OTHER side of improving profitability is cutting costs and here Luxon has been as rigorous as he has in reorganising sales.

While he was running the international airline, unprofitable routes that were bleeding up to $2 million a week were axed and new alliances started to save money and open up new sales channels.

This year some call centre operations have been outsourced and cabin crew are now hired on lower average costs than "legacy" staff.

Luxon is unrelenting about cutting unnecessary expense.

Advertisement
Advertise with NZME.

"It's making sure they're matched to the market. Slash and burn is a quick way of improvement but we're trying to do it in a sustainable way."

Cabin crew costs were higher than competitors', but the airline did not want to get a series of temps and secondees.

While Luxon has maintained a low media profile, he's been active in talking to industry groups. Last week he told a hotel industry conference just how running the rule over all spending can benefit the business. A change in strawberry jam supplier saved the airline $200,000 a year, which was spent on memory foam mattresses for business class cabins across the fleet. The new jam was "good enough" and it was better to buy mattresses that were superior to its rivals'.

There he showed he does a nice line in self-deprecation - not something that is always apparent in aviation. He showed delegates a picture of a younger Luxon working as a porter at a Christchurch hotel in the early 1990s - complete with hair.

Across the industry, fuel and labour costs are where airlines spend most of their money and moves to bring down staff costs put him into conflict with unions.

About a third of the Air NZ group's 10,000 staff are covered by the Engineering, Printing and Manufacturing Union, whose airline representative, Strachan Crang, said the strategy was simple: "Increase revenue and reduce costs. It's there and it's plain to see."

Advertisement
Advertise with NZME.

Crang said Luxon had been engaging with unions and the relationship was respectful.

"We'll do our damnedest to protect the jobs of our workers. It puts us on a collision course on some issues."

Another aviation industry source, who, like many, has to deal with Air New Zealand's dominance and did not want to be quoted by name, said Luxon's big challenge will be managing crew disgruntlement, keeping them smiling as costs are cut.

Luxon offers little comfort to those worried about cost cutting. It would be a continuous process.

"We have to make sure we're getting rid of cost and complexity that frankly our customers are not prepared to pay for in higher ticket prices. Just because we've got inefficiencies in our system there's no excuse to pass that on to our customer."

In a message to staff this week he's been buzzing about his own executive team, but the industry outsider is hard-nosed about the wider airline business.

Advertisement
Advertise with NZME.

"The industry gets tied up in a lot of the uncontrollables - fuel, natural disasters, economic meltdowns and the competition. Those sort of things happen to all of the airlines at the same time but they're often used as excuses for poor performance by airline CEOs and executive teams. What we're trying to do is stop all that."

Christopher Luxon

• Age: 42

• Married to Amanda. He says the couple have "date nights" every Saturday - "it may sound hokey but we allow ourselves that time".

• They have two children, William and Olivia.

• Master's degree in commerce from Canterbury University.

Advertisement
Advertise with NZME.

• 18-year career at Unilever in NZ, Australia, Britain, the United States and Canada.

• Base salary: $1.25 million plus bonuses to be disclosed.

• Lives in Remuera.

• Interests: water skiing, Mini cars (he has a variant, a 1966 Riley Elf), the country music of Brad Paisley and Tim McGraw.

Grant Bradley travelled to Cape Town courtesy of South African Airways and Air NZ.

Save

    Share this article

Latest from Airlines

Business|companies

New data show young Kiwis leading the brain drain; net migration falls below 30,000

13 May 11:45 PM
Business|companies

'Inspire the next generation': Boeing's new push in Kiwi schools

12 May 11:43 PM
World

Trump says would be ‘stupid’ to reject Qatari Air Force One gift

12 May 10:30 PM

The Hire A Hubby hero turning handyman stereotypes on their head

sponsored
Advertisement
Advertise with NZME.
Recommended for you
Scones just got more interesting with this unexpected ingredient
Lifestyle

Scones just got more interesting with this unexpected ingredient

24 May 11:00 PM
Nelson and McDougal shine with double victory at Te Rapa
Racing

Nelson and McDougal shine with double victory at Te Rapa

24 May 10:59 PM
Man charged after two injured in shooting on Karangahape Rd
New Zealand

Man charged after two injured in shooting on Karangahape Rd

24 May 10:51 PM
Parents battling to keep young teen away from older boyfriend turn to Family Court for help
New Zealand

Parents battling to keep young teen away from older boyfriend turn to Family Court for help

24 May 10:00 PM
Watch: Nine of Gazan doctors' ten children killed in Israeli airstrike
World

Watch: Nine of Gazan doctors' ten children killed in Israeli airstrike

24 May 09:31 PM

Latest from Airlines

New data show young Kiwis leading the brain drain; net migration falls below 30,000

New data show young Kiwis leading the brain drain; net migration falls below 30,000

13 May 11:45 PM

A large number of young Kiwis are leaving for Australia, although the rate may have peaked

'Inspire the next generation': Boeing's new push in Kiwi schools

'Inspire the next generation': Boeing's new push in Kiwi schools

12 May 11:43 PM
Trump says would be ‘stupid’ to reject Qatari Air Force One gift

Trump says would be ‘stupid’ to reject Qatari Air Force One gift

12 May 10:30 PM
Premium
Emirates Group announces record $10.5b gross profit

Emirates Group announces record $10.5b gross profit

08 May 09:57 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
Unlock all articles by subscribing to this international offer

All Access Weekly

Herald Premium, Viva Premium, The Listener & BusinessDesk
Pay just
$15.75
$2
per week ongoing
See all offers
Already a subscriber? Sign in here
TOP
search by queryly Advanced Search