Air NZ trims from the top

By Phil Boeyen, ShareChat Business News Editor

Tuesday 23rd October 2001

Air New Zealand (NZSE: AIRVA) has slashed its management team and announced pay cuts for the remaining executives.

After jettisoning loss-making Ansett last month the company says it has now reduced the number of its functional units and senior vice presidents from 12 to six.

The continuing members of the executive have agreed to pay cuts averaging 15%.

Air NZ executive director, Roger France, says it was inevitable that there would be fewer positions in the new structure compared to the combined Air New Zealand - Ansett group.

"We faced a very difficult task making final selections between highly capable and respected executives who guided our business through the integration with Ansett."

Mr France says the company is continuing its search for a new CEO and he will continue with those responsibilities until an appointment is made.

Executives staying with the airline include company secretary John Blair, public affairs boss David Beatson and the head of the company's discount Freedom Air division, Wayne Dodge.

Andrew Miller will be senior vice president of strategy and planning and Norm Thompson is in charge of sales and distribution.

The executives leaving Air NZ include a number of former Qantas employees who were brought on board by the airline's previous CEO, Gary Toomey.

Most joined the airline in January this year although Andrew Pondekas, who was in charge of the airline's ventures unit, has only been with the company since June.

Mr France paid tribute to the departing executives.

"This is sad but inevitable as we have fewer positions in our new structure - and not all of our existing executive team are able to relocate to Auckland."

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