Greg Foran talks leaving the airline and the state of the company and sector with Newstalk ZB's Mike Hosking.
Greg Foran believes his exit from Air New Zealand is well-timed, despite ongoing engine issues.
The chief executive highlighted progress on Dreamliner retrofits and the arrival of new Boeing 787s next year.
Air New Zealand is seeking compensation for engine problems, expecting $35 million to $40m in 2025.
Greg Foran has defended the timing of his exit from the top job at Air New Zealand, despite ongoing problems with the national carrier’s aircraft engines.
Speaking on Newstalk ZB this morning, host Mike Hosking questioned whether Foran’s resignation as the airline’s chief executive could be justified at a time when it’s “still got a lot of issues” to fix.
“I, from my position, know a little bit more about what’s coming down the pipeline and what’s going to be here by October so ... I think the timing will be pretty good,” Foran said.
But Foran did pledge to give the airline a “lengthy run-in period” to find a successor, after he announced his resignation on March 6.
Meanwhile, the Rolls-Royce Trent 1000 engines on some of the airline’s 787 Dreamliners face maintenance backlogs as they are checked for premature wear and weakness.
Other initiatives, like its Dreamliner retrofits, continued to make good progress.
Air New Zealand chief executive Greg Foran says the timing of his exit from the airline in October "will be pretty good". Photo / Michael Craig
Foran indicated that the first retrofitted Dreamliner is set to be in the air “in a week’s time”.
Air NZ will have seven completed by the end of 2025.
New Air NZ aircraft are heading to Boeing’s production line and Foran said he was confident that two new 787s would arrive this time next year, with another two likely following by year’s end.
Foran also referenced the airline’s new hangar, opening in October, and the replatforming of “just about every digital system in the business”.
As he plans to hand the reins to his successor in October, Foran is confident his “run of the relay is about right”.
“These are pretty significant setbacks that fundamentally are beyond our control,” Foran said.
In an announcement to the NZX last month, the national carrier said it could not rely on engine maintenance timeframes provided by the manufacturers.
“As a result, current expectations are that 11 aircraft are grounded, despite Air New Zealand securing seven additional leased engines and one further owned spare engine to stabilise the number of grounded narrow-body jets.”
The airline was in talks with the manufacturers to establish accurate timeframes for engine returns and is arguing for a suitable level of compensation to offset the losses incurred.
“These discussions continue to be complicated, but Air New Zealand is exploring all possible avenues to ensure a fair outcome.”
The airline expected compensation recognised in the second half of the 2025 financial year to be around $35 million to $40m, down from $94m recognised in the first half.
While lower fuel prices were helping to buoy any losses, the airline’s “operations remain configured to operate around eight to 10 more jet aircraft than are presently available”.
“Adjusting the business to reflect fewer aircraft in the short term introduces considerable complexity, especially as engines begin returning to service and capacity ramps up again,” it said.
Air New Zealand has since projected earnings before tax for the 2025 financial year to be around $150m to $190m.
Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.
