Air NZ pays $28m bill for shedding 60 staff

By CHRIS DANIELS

Air New Zealand paid $28.8 million to 60 employees who lost their jobs in the past year.

One employee, likely to be former chief executive Gary Toomey, walked away from the company with at least $4.2 million.

The figures are included in the airline's annual report, published yesterday. They include payouts to senior managers who lost their jobs as a result of the merger between Ansett and Air New Zealand, when Air New Zealand took its ownership in the Australian airline to 100 per cent two years ago.

Most of the 60, however, will have been paid out after their jobs were axed when Ansett was cut loose from Air New Zealand and went into receivership late last year.

Toomey left the company last October, after nine months in the chief executive's job. At the time he was reputed to have left with a payout of about $2 million, close to his annual salary.

The report also shows that former chairman Jim Farmer, QC, received a retirement payment of $162,500, in addition to his director's fees of $65,615. Farmer also received a consultancy payment of $12,375, taking his total remuneration to just over $240,000.

He was the only one of the 11 directors who retired during the latest financial year, to June 30, shown as receiving a retirement payment.

Paul Collins and Patsy Reddy received payments of $120,000 when they left the board two years ago.

Among the airline's present directors, deputy chairman Roger France received $451,000, including $110,675 in consultancy payments. Chief executive Ralph Norris received $407,000.

The report lists nine employees who earned more than $500,000. Last year, 51 employees made it into the $500,000-plus club.