Toomey hot tip to head Air NZ

By DANIEL RIORDAN

Air New Zealand is expected to announce its new chief executive tomorrow, with Qantas deputy chief executive Gary Toomey the hot favourite.

Executive chairman Sir Selwyn Cushing said last night that he was confident the subcommittee of the board charged with appointing a successor to Jim McCrea would meet tomorrow and decide.

Air NZ staff would be told after that, said Sir Selwyn.

He had no comment when asked if Mr Toomey, who is also Qantas' chief financial officer, would get the job.

"Nothing, I stress, nothing is on paper. Officially there is more than one candidate."

Sir Selwyn said at Air NZ's profit result briefing two weeks ago that an appointment was imminent and a very short short-list had been drawn up.

Cathay Pacific's director for corporate planning, Tony Tyler, has also been reported as a strong candidate, but Mr Toomey has emerged in the past week as the odds-on favourite.

Several analysts on both sides of the Tasman said they understood that Mr Toomey had been on special leave from Qantas since Friday.

They said they would be surprised if he did not get the job.

When the Business Herald rang Mr Toomey's office yesterday we were told, "He's not in this week."

Asked if he would be in next week, we were told it might be difficult to get hold of him because of the Olympics.

One aviation analyst said Mr Toomey would be a great catch for Air NZ.

"He's something of a wunderkind - slashed a couple of billion from Qantas' costs and is exactly the sort of guy Air NZ needs."

Another analyst, Jason Smith of Salomon Smith Barney in Sydney, said Mr Toomey had been a key driver in Qantas' successful cost-reduction programme over the past seven years and had had a major input into the airline's strategy.

"If it's true he's going to become Air NZ's chief executive, then it's a major coup for Air NZ and a mild blow for Qantas."

A New Zealand analyst said Mr Toomey had a reputation as a good, hard operator and the market would welcome his appointment.

Air NZ has been without a chief executive since Mr McCrea resigned abruptly two months ago.

Mr Toomey was in New Zealand last week, as part of a series of investor briefings, talking with institutions such as AMP and Axa NZ.

The 45-year-old has been a Qantas director since December 1993.

A chartered accountant, he was briefly the chief financial officer with Arnotts before the Qantas job.

Before that he held the same position for five years at domestic carrier Australia Airlines, before it was acquired by Qantas.

Mr Toomey had been talked about as a replacement for Qantas chief executive James Strong, who is leaving next year. His move to Auckland would give fellow deputy chief executive Geoff Dixon the inside running.

The growing rumours of Mr Toomey's departure have helped to send Qantas shares down 21c in the past week, to 364Ac yesterday.

Air NZ A shares closed 3c higher at 193c. B shares were up 5c to 280c.