By KARYN SCHERER and AGENCIES
Air New Zealand has abolished six senior management posts and cut the pay of its remaining managers by an average of 15 per cent to lighten the load after the collapse of Ansett.
In the shake-up, indicated by the airline last month, several former Qantas executives will follow former Air NZ chief executive Gary Toomey in leaving the company - some just a few months after they joined.
The announcement sparked heavy trading in the airline's shares.
In New Zealand, its unrestricted B shares rose 9c to close at 33c and the A shares were up 4c to 32c. In Australia, the B shares fell 3.5Ac to 28Ac after a big rise on Monday.
Chief financial officer Adam Moroney, who was Mr Toomey's deputy at Qantas, will leave at the end of the year.
Mr Moroney, with 14 years' experience in the aviation industry, joined Air NZ in February.
Senior vice-presidents Kevin Turnbull and Andrew Pondekas are leaving "shortly". Mr Turnbull rejoined the company in January and Mr Pondekas joined in June.
Mr Toomey quit two weeks ago. Director Roger France is acting chief executive until a new chief is found.
Andrew Miller, regarded by some as a potential replacement for Mr Toomey, has been appointed head of the airline's planning division in the restructuring. He was previously head of sales and marketing.
The company's board of directors will continue to receive free travel worth thousands of dollars annually.
Company secretary John Blair said the new board - reduced to eight members under conditions attached to the airline's $885 million bailout - would still enjoy a travel entitlement despite the airline cutting services and staff.
"The directors are eligible for free travel annually with the limit being a cost to the company of no more than $1000 per person," Mr Blair said yesterday.
He confirmed the $1000 limit could translate to providing fares worth thousands of dollars on the commercial market.
The exact commercial value was "extremely difficult to quantify", as it depended on the time of year and had to take into account discounts offered by travel shops.
One aviation analyst, who did not want to be named, said the $1000 limit could allow directors to benefit from "$10,000 or more worth of free travel at commercial rates".
"Air NZ staff and directors have always flown for about 10 per cent of commercial prices and it seems there are no changes to that perk."
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