Andy Bowley: Forsyth Barr Head of Research on Greg Foran's resignation as Air NZ CEO

There’s a belief outgoing Air New Zealand boss Greg Foran's lack of aviation experience may have hurt his career. 

He's announced he'll leave the company in October. 

Foran's told his board the time's right to step down, and the airline is well set up for the future. 

Forsyth Barr head of research, Andy Bowley told Mike Hosking Foran's had to deal with Covid, a national recession, and engine maintenance issues throughout his tenure. 

He says it's also been the biggest period of inflation seen in a generation, which added up, has been pretty challenging. 

The company will also have little trouble finding a new CEO. 

Bowley told Hosking the company has a history of attracting talented people for the role from around the world. 

He says they're typically Kiwis, who have learnt their trade offshore. 

The CEO before Foran was none other than now Prime Minister Christopher Luxon. 

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Episode Transcript

Speaker 1 (00:00):
In a week where a lot of people, as I've
just outlined, and decided to walk or some got push.
And we've yet to find out whether the chair of
Wellington Water adds to that particular pile. We saw on
that mix. The resignation, of course yesterday of Greg Foran,
the in New Zealand CEO here I Feb twenty twenty
landed just about the same time as COVID did Forsyth
head of researcher, and the bully is well, it's Andy,
very very good morning to you. Morning Mike pure metrics.

(00:24):
How does he rate?

Speaker 2 (00:27):
It's Look, it's really difficult to judge an airline CEO
on any kind of metric on the basis that there's
a huge amount of external influences that impact them, and
you've seen that through Creig's tenure that he's he's had
kind of four major impacts of various factors, be it

(00:47):
COVID as you just mentioned, being an enzed recession, the
engine maintenance issues that continue to dictate the airline performance,
and the biggest kind of period of infloy that we've
had in the generation. So you kind of had all
those up together. It's been a pretty challenging period for him.

Speaker 1 (01:05):
Did the lack of aviation experience hurt him, do you
think as we look back.

Speaker 2 (01:11):
Probably, I think that's a fair assessment. You know, particularly
when he stepped into the airline on day one when
they were counseling flights to Shanghai and trying to pick
up the reins of the business that he was getting
accustomed to in an industry that he hadn't worked in before.
Probably did have an impact, but he picked it up
pretty quickly.

Speaker 1 (01:30):
My assessment, I like him just for the record, for
what it matters. I found him an engaging kind of
guy who was interested in, you know, talking about the
airline and selling an airline. So I mean it's not
a personal thing. But this thing that was announced yesterday
where the airlines in good shape and set to go,
I don't buy because from the punter's point of view,
it's not true.

Speaker 2 (01:48):
Is it. I think that's a fair assessment. I've got
some sympathy with the line being used by the airline,
though in the context that you know, this is external
fact is impacting them quite substantially given the engine maintenance
issues they're facing at the moment.

Speaker 1 (02:04):
That is no one's fault, is it? I mean the
fact they can't get an engine and the engines don't work.
I mean, what do you do?

Speaker 2 (02:11):
It Probably is somebody's fault in the context of the
engine manufacturers. But yes, it's not the fold of the
airline necessarily, And there's a not a lot they can do,
given the supply chain issues they've had, given the delays
in the maintenance schedules that the manufacturers have now provided them,
which keeps them pretty handstraw in terms of their ability
to fly the capacity that.

Speaker 1 (02:32):
They want to this image problem they've got one. From
your point of view, is it real? I get in
under there's just just an edge about New Zealanders that
they are just so willing to hate Air New Zealand.

Speaker 2 (02:46):
I think you were going to suggest that you get
a fair bit of feedback. I get a fair better
feedback as well. I think there's some work to do,
you know, particularly in this post covid era, to rebuild
the image to the extent that it has enjoyed historically.

Speaker 1 (03:03):
Who do they need? Do they do it internally? Do
they do it externally? Is it global? Does anyone want
the job? Can they turn it round?

Speaker 2 (03:11):
So? I reckon it's one of the most primo jobs
in New Zealand corporate life. They've had a good history
of attracting very talented individuals internationally, typically Kiwis that have
learned their trades offshore, and I suspect there'll be a
reasonably good list of potential candidates for that job.

Speaker 1 (03:33):
Good stuff, Andy, you have a very good week and
appreciate time, Andy Bowley, Who's forsyight bar ahead of research.
For more from the Mic Asking Breakfast listen live to
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Speaker 2 (03:42):
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