Toomey - jumped or pushed?

By Phil Boeyen, ShareChat Business News Editor

Tuesday 9th October 2001

Air New Zealand (NZSE: AIRVA) chief Gary Toomey is leaving the airline less than a year after taking up the job but it's unclear whether he's resigned or been let go.

The airline says Mr Toomey's departure is by mutual agreement with the board but isn't giving any details about the terms of settlement of his departure.

"The terms of a settlement which has been agreed under the agreement are confidential as between Gary and the company but they are consistent with his contractual entitlements and benefits," says acting chairman Jim Farmer.

Dr Farmer says it's a sad moment for the airline but both parties agree that the circumstances in which the company finds itself are quite different from the Australasian airline group that attracted Mr Toomey to join it at the beginning of the year.

"He has encountered a set of problems that were not of his making and has worked relentlessly to find answers to them. We have no criticism to make of him - or the management team he led - for what has happened and wish him well wherever he goes now."

Mr Farmer says the company's CEO has personally borne the brunt of Australian anger arising out of the Ansett closure and he deserves every sympathy and consideration because of that.

Gary Toomey says the board's decision to place Ansett in voluntary administration means that the future Air New Zealand must set its sights on different goals from the ones that drew him to the company.

"I think it is appropriate for me to move aside, take a break with my family, and consider some of the options open to me."

"I deeply appreciate the literally hundreds of cards and messages I have received from staff and supporters during the difficult times that the group has gone through over the year. I also wish to thank the management team for their work in responding to the problems the company has experienced."

Mr Toomey says he and his family wish the company every success in its new form.

Air New Zealand says its newly-appointed director, Roger France, will act as an executive director until a new chief executive is appointed.

Mr France is an Auckland chartered accountant, who recently retired as a senior partner in PricewaterhouseCoopers.

Mr Toomey's departure from Air New Zealand marks the end of one of the most turbulent and financially-troubled periods in the company's history.

On being appointed to the role last year Mr Toomey said "the challenge of moving to a lead role in a significant airline business that's got its roots in Australia and New Zealand and is determined to grow its international competitiveness was irresistible."

Despite his best efforts the former Qantas deputy chief was unable to plug all the leaks in a sinking airline business that was weighed down in particular by a run-down, financially inefficient Australian business called Ansett.

As a result he gets to go down in New Zealand corporate history for presiding over a company which this year announced $1.425 billion loss.

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