Courageous times for national carrier, says Air NZ boss

Air New Zealand chief executive Christopher Luxon spoke at Napier City Council's Business Breakfast. Photo/Paul Taylor

There was "a real challenge making our regional services work" four years ago, when new Air New Zealand chief executive Christopher Luxon visited Hawke's Bay.

Hawke's Bay mayors were "very straight" about what was wrong, but after a $600 million investment the region had better aircraft, better airfares and a more sustainable service, he said.

"I get the sense this is a region on the move - there is good stuff happening right across the board," said Mr Luxon.

He told Napier City Council's Business Breakfast on Thursday that the 77-year-old airline was also on a roll. It was growing up to 8 per cent annually with a turnover of more than $5 billion, 11,800 employees, 32 international destinations, 21 domestic destinations and no other organisation spent more promoting New Zealand.

The profitable business over the past five years enabled a spend of $2.6b on new aircraft with $2.1b due to be spent on new planes in the next three years.

It was the number one company New Zealanders wished to work for and last week was voted the top spot on the Reputation Index produced by research group AMR and the Reputation Institute, despite Aussie parochialism.

"We have as much Kiwi in there as we possibly can and for the Australians to vote for us their number one company is a bit of a first," he said.

A major opportunity was a shift in world economic power from Europe and the Atlantic to the Pacific Rim, placing New Zealand in prime position thanks to a network of partners. It was becoming a hub for Australian travellers to North America and Asian freight.

"If you are south of Shanghai the fastest way to South America is through New Zealand."

He said Hawke's Bay Tourism did a good job showcasing the region and Air New Zealand's sponsorship of the Hawke's Bay International Marathon brought 5000 visitors at an off-peak time of year.

He welcomed Hawke's Bay Airport's planned terminal expansion, due to start this year.
"As the growth has come the investment is coming, which is really fantastic."

All businesses faced an "uncertain and volatile" world but companies with decades-long success stuck with wider mission than profit, with only changes being different strategies to achieve the higher goal.

"We fundamentally believe our role is to super-charge New Zealand success economically, socially and environmentally. That is not mumbo-jumbo and Kumbaya, that's actually real."

New Zealand central/local government, community and business leaders were increasingly realising they could beat challenges and seize opportunities through a combined approach, he said.

"It shouldn't all be left to government. Us as business leaders need to step up and actually participate in strengthening civil society."