Our national airline is making less money on its long-haul routes and aircraft engine issues are keeping a lid on growth. Should it remain an international airline?
Greg Foran was a big get when he accepted Air New Zealand’s top job in late 2019 – but he soon ran into some of the airline’s most turbulent times in recent history.
He was chief executive of Walmart US before Air New Zealand hired him, replacing Christopher Luxon.
WalmartUS was, and is, a gigantic company, in Foran’s time running more than 4000 stores and employing an estimated one million people.
But the move to Air New Zealand was reported at the time as a homecoming for Foran, who was raised in Hastings and Hamilton.
Covid-19 was not even in the vocabulary yet, and the consequences of the Pratt & Whitney engine issues afflicting some aircraft were still years away.
Orr will walk out the door of the Reserve Bank’s headquarters on The Terrace no later than March 31, and Finance Minister Nicola Willis delivered a six-paragraph, 92-word statement about him.
“I wish him well for the future,” Willis said.
Greg Foran took the job at Air New Zealand just before Covid-19 arrived. Photo / Cook Islands Tourism
Mark Lister, Craigs Investment Partners investment director, considered the differences between Air NZ and Walmart US.
“I imagine Walmart in many ways is a more stable [company] but then again, it’s a much bigger beast. It’s like running an entire country.”
But Air NZ was one of the country’s most high-profile companies, and Foran as its CEO would have had to manage many challenges.
“It’s probably one of the harder ones, given there are so many things beyond your control.”
Lister said the airline would look far and wide for a new chief executive.
And apart from Covid and the engine issues, he has had to contend with a sluggish economy, rising levies imposed on many in the aviation sector, and the inevitable scrutiny of everything from flight attendant uniforms to new safety videos.
Air New Zealand chief executive Greg Foran inspects the new Premium Economy seats yet to be installed at ST Engineering's facility in Singapore. Photo / Air New Zealand, Alex Twentyman
“He’s actually done a remarkable job over five years,” Aviation Industry Association chief executive Simon Wallace said.
“He took on an airline in what has to be the most challenging period in aviation history.”
Wallace told the Herald Foran had to lay off staff when Covid-19 arrived, then effectively bring the airline back from the dead.
“And that has been no easy feat... His tenure needs to be looked at in terms of what he’s done to keep Air New Zealand as a sustainable airline.”
For the six months to December 31, Air New Zealand’s net profit was $106 million.
An Air New Zealand spokesman yesterday said Foran would not be giving interviews right now and was at his desk, back to work.
“Of course I want it to be better,” Foran told the Herald.
“I would say to you it has been the No 1 thing on my mind since I started. But I also recognise we’re dealing with some pretty difficult circumstances, some of which are beyond our control.”
Foran then said criticism he personally received about the airline’s service came with the territory.
“There are parts of it that I find pretty engaging, that people care so much about this business.
“And so they should, because we actually hold a special place in many Kiwis’ hearts, don’t we?”
