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Home / Business / Markets with Madison

Chief executive Greg Foran reveals Air New Zealand’s reputation score

Madison Malone
By Madison Malone
Senior Business Journalist, host of Markets with Madison·NZ Herald·
22 Sep, 2024 07:00 PM3 mins to read

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Auckland International Airport just raised $1.4b from investors to help pay for terminal upgrades. But its biggest customer was caught off guard. Video / Cameron Pitney

The reputation of our 51% Government-owned airline has not improved under the leadership of Greg Foran, according to Air New Zealand’s own internal measures.

While its customer satisfaction scores had improved since 2019, its reputation score, made up of feedback it gathered from customers throughout their online, phone and in-person experiences with the airline, was flat.

“Of course I want it to be better,” Foran told Markets with Madison.

“I would say to you it has been the number one 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. But I also accept that regardless of that, we still have to deliver.”

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Foran 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?”

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Foran is an unhappy customer himself - he is against the cost of Auckland International Airport’s $6.6 billion infrastructure upgrade plan, which is already partially underway.

The Commerce Commission says the airport’s revenue and targeted returns are excessive but its planned investment appears appropriate.

“Not just Air NZ but actually all customers are a bit up in arms about the scale and the cost of what is getting built,” Foran said.

The airport raised $1.2b from institutional investors last week to help pay for it, but increases to landing and take-off fees charged to airlines will also contribute. Current Auckland Airport fees are about $12 per passenger on a domestic jet flight.

Air New Zealand and Qantas believe higher fees will make tourism suffer further.

Tourism is struggling in this economic environment, one of many headwinds for Foran at the helm of Air New Zealand.

Watch Greg Foran discuss how long he plans to pilot Air NZ in the latest episode of Markets with Madison above.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

Sponsored by CMC Markets.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

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Madison Reidy is the host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.

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