December 9, 2024 • 6 mins
Air New Zealand's chief executive says it's a matter of when, not if, they return to London.
The airline faces another two to three years of disruption waiting for new aircraft and the completion of maintenance on existing ones.
The disruptions already cost the airline up to $150 million a year.
Greg Foran told Heather du Plessis-Allan they've been given spots at Gatwick Airport.
He says it got them excited initially, but they haven't got any planes.
Greg Foran says he expects to get those planes at the start of 2026.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Oh man, it was a tough old year for Air
New Zealand, wasn't it. The national Airline's been struggling to
make a buck. It's been slammed for the ticket prices,
it's dealt with the global engine issues. It's got itself
into a massive scrap with Auckland Airport and the man
in charge, Greg FOURU is with us now morning.
Speaker 2 (00:13):
Greg, good morning, how are you well?
Speaker 1 (00:15):
Thanks very much? Out of ten how tough has this
year been?
Speaker 2 (00:19):
Well? The good news is we've still got cookie time cokies,
so we'll be pleased about that. I heard you're talking
about termy tams. But yeah, look, we're doing a good
job with the cookies. The rest of it. Actually, I
think it's doing pretty well. The team that I think
are doing a great job. As we get into Christmas,
plenty of things we've been dealing with. I've just got
back from a week overseas finding out how difficult the
(00:42):
supply chain is, and it's certainly keeping us on our toes.
Speaker 1 (00:45):
Now, this is the supply chain, read the engine getting
new planes? Is that what it is?
Speaker 2 (00:50):
Yeah? Yeah, sort of everything hither. You know, when you
sit down and your talk with the people running Rolls
Royce and Nearbus and Safra, which is a major supplier,
and they tell you about how difficult they're found it
trying to get skilled labor from COVID, you know, returning
from COVID. They're dealing with wars in Ukraine, which has
(01:11):
not only seen material put into military activity but also people.
They're dealing with inflation, they're dealing with increased regulatory environments.
And then finally, you know the supply base, which is
thousands of suppliers looking after the aviation industry has never
(01:33):
really recovered, so you know, going a year's behind Airbus.
You can't get a new plane un till twenty thirty one,
et cetera, et cetera. So challenging, but we're getting on
with it. And the good news is I saw our
first retrofit plane. It's halfway through. It's retrofit in Singapore,
and that's looking good.
Speaker 1 (01:50):
Oh good. Now, listen the thing that is getting the
goes of your customers. I reckon it's a pricing. Obviously,
I think we all realize prices have gone up, but
I reckon it might actually be the on time performance.
Do you reckon you can fix that?
Speaker 2 (02:03):
I can tell you. We are doing everything we can,
and I'd go a step further and say to you
on time. Actually, cancelations is the thing that gives me
the greatest concern at the moment. Too many flights are
getting canceled. Yeah, we're doing everything that we can. A
fair amount of it is just simply getting the parts.
(02:24):
We often have to wait for an aircraft to be
what they call on ground aircraft on ground AOG before
the supply will release a part to us. Now we're
working hard on those things. We've got to do better,
and I do apologize because it's not where we want
it to be. Too many flights something.
Speaker 1 (02:42):
Great, because everybody is dealing with the same stuff that
you are. I mean, obviously to varying degrees. But how
came your cancelation rate is more than double jetstars.
Speaker 2 (02:52):
Well, it's not actually on the same routes that we
run in the same aircraft. So when you actually break
it down and say what's your cancelation rate on your
jets where they operate, Yeah, that's different to what it
is on the turbo props. Now, the turbo props, we're
finding it more difficult to get part and those planes
are also spread out more around the country, so we've
(03:14):
got to get engineersed places. But actually, on a like
for life basis, our cancelation rate is actually the same
as jetsta.
Speaker 1 (03:21):
It doesn't matter. I mean, if you're if you're a
customer in I don't know, let's say Napier and you're
catching a smaller plane, doesn't really matter what the plane is, right,
You're still getting canceled.
Speaker 2 (03:31):
I agree with you. I don't disagree for a customer
and when you're cancel and when you're this.
Speaker 1 (03:37):
Is the thing I dot iBook you in New Zealand
because I like, in my head, I like the luxury
of it, right, so I'm expecting a better service.
Speaker 2 (03:44):
Yeah, look, I accept we've got to get on top
of that, Heather, and I can tell you we're working
really really hard to do it, to get everything that
we can. So we get this thing operating well most
times we do. But when we don't apologize for.
Speaker 1 (03:59):
That, Hey, are you going to go back to London?
Speaker 2 (04:03):
We will. Actually the question is when we actually put
in for some slots we didn't expect to get them,
slots of the ability to land and take off, you
get the gap wet ones gatwork came back and said yes,
and they said, look, you can start in April next year.
That got us excited initially, but of course the problem
(04:24):
I've got is I haven't got any planes. I was
talking to the chief executive at barn Kelly. He's a
new chaplain in charge. I was over there four weeks
ago meeting with him. We're desperately trying to get these planes.
We're working hard on doing that, but you know, we
have to be in the queue along with United and
Delta and CAFA and British Airways, and we were in
(04:47):
that queue. But we expect to get those planes the
beginning of twenty twenty six, so they're still over a
year away, and in sometime that year, with a bit
of luck, we'll be able to get London and back up.
Speaker 1 (05:00):
And right, are there any days where you regret coming
back from Walmart to New Zealand to do this and
now you've been lumped with this company?
Speaker 2 (05:07):
You know, it's not a question that I actually consider,
to be honest with you, hea it You know, when
you're in it, you just got to get on with it.
And it has been interesting, hasn't it. You know? I
started the day we stopped flowing to Shanghai. Five weeks later,
we closed the airline down. Basically, apart from repatriation in cargo,
was two and a half years doing a capital raise.
(05:29):
We then went flat out trying to get the thing
open again quickly, and then we've had supply chain issues
and engine problems. But that's okay, you get on with it.
And you know, we did get voted by customers as
the best airline in the world three months ago, and
I'm really proud of the team for doing that. And
you know, I came back on a bunch of other
(05:50):
airlines this week. You know, I've been in Europe and
I can tell you we stand up very very well,
very well. The quality of our food, our service, way
that our team look after our customers. I would put
them against anyone out there.
Speaker 1 (06:05):
I'll tell you what, Greek. The one thing you guys
have got going for is you have an excellent team. Listen,
thank you very much, Enjoy your Christmas Abyss of black
next year, that's Greek Foreign in New Zealand CEO. For
more from the Mic Asking Breakfast, listen live to news talks.
Speaker 2 (06:17):
It'd be from six am weekdays, or follow the podcast
on iHeartRadio.
Oh man, it was a tough old year for Air
New Zealand, wasn't it. The national Airline's been struggling to
make a buck. It's been slammed for the ticket prices,
it's dealt with the global engine issues. It's got itself
into a massive scrap with Auckland Airport and the man
in charge, Greg FOURU is with us now morning.
Speaker 2 (00:13):
Greg, good morning, how are you well?
Speaker 1 (00:15):
Thanks very much? Out of ten how tough has this
year been?
Speaker 2 (00:19):
Well? The good news is we've still got cookie time cokies,
so we'll be pleased about that. I heard you're talking
about termy tams. But yeah, look, we're doing a good
job with the cookies. The rest of it. Actually, I
think it's doing pretty well. The team that I think
are doing a great job. As we get into Christmas,
plenty of things we've been dealing with. I've just got
back from a week overseas finding out how difficult the
(00:42):
supply chain is, and it's certainly keeping us on our toes.
Speaker 1 (00:45):
Now, this is the supply chain, read the engine getting
new planes? Is that what it is?
Speaker 2 (00:50):
Yeah? Yeah, sort of everything hither. You know, when you
sit down and your talk with the people running Rolls
Royce and Nearbus and Safra, which is a major supplier,
and they tell you about how difficult they're found it
trying to get skilled labor from COVID, you know, returning
from COVID. They're dealing with wars in Ukraine, which has
(01:11):
not only seen material put into military activity but also people.
They're dealing with inflation, they're dealing with increased regulatory environments.
And then finally, you know the supply base, which is
thousands of suppliers looking after the aviation industry has never
(01:33):
really recovered, so you know, going a year's behind Airbus.
You can't get a new plane un till twenty thirty one,
et cetera, et cetera. So challenging, but we're getting on
with it. And the good news is I saw our
first retrofit plane. It's halfway through. It's retrofit in Singapore,
and that's looking good.
Speaker 1 (01:50):
Oh good. Now, listen the thing that is getting the
goes of your customers. I reckon it's a pricing. Obviously,
I think we all realize prices have gone up, but
I reckon it might actually be the on time performance.
Do you reckon you can fix that?
Speaker 2 (02:03):
I can tell you. We are doing everything we can,
and I'd go a step further and say to you
on time. Actually, cancelations is the thing that gives me
the greatest concern at the moment. Too many flights are
getting canceled. Yeah, we're doing everything that we can. A
fair amount of it is just simply getting the parts.
(02:24):
We often have to wait for an aircraft to be
what they call on ground aircraft on ground AOG before
the supply will release a part to us. Now we're
working hard on those things. We've got to do better,
and I do apologize because it's not where we want
it to be. Too many flights something.
Speaker 1 (02:42):
Great, because everybody is dealing with the same stuff that
you are. I mean, obviously to varying degrees. But how
came your cancelation rate is more than double jetstars.
Speaker 2 (02:52):
Well, it's not actually on the same routes that we
run in the same aircraft. So when you actually break
it down and say what's your cancelation rate on your
jets where they operate, Yeah, that's different to what it
is on the turbo props. Now, the turbo props, we're
finding it more difficult to get part and those planes
are also spread out more around the country, so we've
(03:14):
got to get engineersed places. But actually, on a like
for life basis, our cancelation rate is actually the same
as jetsta.
Speaker 1 (03:21):
It doesn't matter. I mean, if you're if you're a
customer in I don't know, let's say Napier and you're
catching a smaller plane, doesn't really matter what the plane is, right,
You're still getting canceled.
Speaker 2 (03:31):
I agree with you. I don't disagree for a customer
and when you're cancel and when you're this.
Speaker 1 (03:37):
Is the thing I dot iBook you in New Zealand
because I like, in my head, I like the luxury
of it, right, so I'm expecting a better service.
Speaker 2 (03:44):
Yeah, look, I accept we've got to get on top
of that, Heather, and I can tell you we're working
really really hard to do it, to get everything that
we can. So we get this thing operating well most
times we do. But when we don't apologize for.
Speaker 1 (03:59):
That, Hey, are you going to go back to London?
Speaker 2 (04:03):
We will. Actually the question is when we actually put
in for some slots we didn't expect to get them,
slots of the ability to land and take off, you
get the gap wet ones gatwork came back and said yes,
and they said, look, you can start in April next year.
That got us excited initially, but of course the problem
(04:24):
I've got is I haven't got any planes. I was
talking to the chief executive at barn Kelly. He's a
new chaplain in charge. I was over there four weeks
ago meeting with him. We're desperately trying to get these planes.
We're working hard on doing that, but you know, we
have to be in the queue along with United and
Delta and CAFA and British Airways, and we were in
(04:47):
that queue. But we expect to get those planes the
beginning of twenty twenty six, so they're still over a
year away, and in sometime that year, with a bit
of luck, we'll be able to get London and back up.
Speaker 1 (05:00):
And right, are there any days where you regret coming
back from Walmart to New Zealand to do this and
now you've been lumped with this company?
Speaker 2 (05:07):
You know, it's not a question that I actually consider,
to be honest with you, hea it You know, when
you're in it, you just got to get on with it.
And it has been interesting, hasn't it. You know? I
started the day we stopped flowing to Shanghai. Five weeks later,
we closed the airline down. Basically, apart from repatriation in cargo,
was two and a half years doing a capital raise.
(05:29):
We then went flat out trying to get the thing
open again quickly, and then we've had supply chain issues
and engine problems. But that's okay, you get on with it.
And you know, we did get voted by customers as
the best airline in the world three months ago, and
I'm really proud of the team for doing that. And
you know, I came back on a bunch of other
(05:50):
airlines this week. You know, I've been in Europe and
I can tell you we stand up very very well,
very well. The quality of our food, our service, way
that our team look after our customers. I would put
them against anyone out there.
Speaker 1 (06:05):
I'll tell you what, Greek. The one thing you guys
have got going for is you have an excellent team. Listen,
thank you very much, Enjoy your Christmas Abyss of black
next year, that's Greek Foreign in New Zealand CEO. For
more from the Mic Asking Breakfast, listen live to news talks.
Speaker 2 (06:17):
It'd be from six am weekdays, or follow the podcast
on iHeartRadio.
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