Boardroom war rages for Air New Zealand control

Friday 4th May 2001

By Nicholas Bryant and Jock Anderson

A heated battle has broken out among Air New Zealand's directors over a push for foreign domination of the company's board.

Well-placed sources talk of a plan by foreign directors to replace retiring chairman Sir Selwyn Cushing with Aussie-based but Kiwi-born director John Rose.

Also a director of Woodside Petroleum, Dr Rose is understood to have lived in Australia for about 40 years.

Insiders said the hunt was well under way to find Dr Rose an Auckland residence so he could be seen to be domiciled here.

The move on the chairmanship is understood to be part of a broader strategy by Air New Zealand's foreign partners to uproot the airline's headquarters to Melbourne.

The appointment of Dr Rose would not breach the rules of the company's constitution which demand the chairman be New Zealand-born.

The backing of Dr Rose signals the increasing influence by Singaporean and Australian powerbrokers within the company.

Sir Selwyn, whose term as chairman expires in November, is understood to favour either ASB Bank and Business Roundtable head Ralph Norris or former National cabinet minister Philip Burdon, both current directors, as his successor. But neither man is believed to have the support of the foreign parties.

The Australian power-base is known to be disillusioned with Air New Zealand's local masters after Dr Rose was the only appointment to represent Ansett Australia on the board.

Poor handling of the Ansett Australia grounding had also rankled.

As well as his nine-year term on the board of Woodside Petroleum, Dr Rose is dean of the Melbourne Business School at the University of Melbourne, a position he has held since 1984.

He has previously held board positions in Australia with AMP and Hewlett-Packard and was an adviser to the Australian Prime Minister's Office from 1977 to 1983.

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