“These begun with Covid-19, and continue today with the engine issues materially impacting both our Boeing and Airbus fleets.”
The airline last month reported earnings before tax of $155 million for the six months to December 31, down from $185m in the same prior period.
“While these challenges impact our operations almost daily, Greg’s relentless focus and global profile have been instrumental in mitigating the consequential disruptions on our customers,” Walsh said.
Foran started at Air NZ in early 2020, replacing Christopher Luxon.
He was previously chief executive of huge retailer Walmart US, which has thousands of stores.
Foran, now 63, grew up in Hastings and Hamilton and is the father of Kiwi league star Kieran Foran.
He joined Walmart International in 2011 where he served in several roles.
Those included President and CEO of Walmart China and then President and CEO of Walmart Asia.
And before joining Walmart, he held several positions with Woolworths in Australia and New Zealand.
‘Global search’ for new chief
“As I’d expect of Greg, he’s been very generous with his notice period and will stay with Air New Zealand through to the middle of October,” Walsh said.
“This allows the Board to carry out a global search for his replacement which we will embark on immediately.”
Foran said leading Air New Zealand had been one of the greatest privileges of his career.
“It’s been an incredible experience alongside an exceptional team. I’m incredibly proud of what we’ve achieved together and the way we’ve positioned Air New Zealand for the future,” he added.
“I am humbled by the work Air New Zealanders do every day and their extraordinary commitment to each other, our customers and our country.”
In April last year, the Herald reported Foran was paid $3.13m, up 34% on the previous year.
That made him one of the 10 best-paid listed company chief executives in the country.
‘Must have felt like 10 years’
Mark Lister, Craigs Investment Partners investment director, said Foran’s long notice period would be helpful for the airline and it suggested there was no bad blood.
He said Foran ran the airline at an unusually difficult time.
“It probably feels to him like 10 years, given the environment he was unfortunate enough to take on unexpectedly,” Lister said.
“It has been a difficult time with Covid, having to shore up the balance sheet, raise capital, the engine issues.”
The engine issues affect the airline’s Airbus A321 neos and its Dreamliners.
Last year, Pratt & Whitney announced a recall of 1200 engines due to inspections required for microscopic cracks, causing disruptions for 57 airlines worldwide.
And last month, Foran said up to 11 of the airline’s aircraft could be out of action due to engine maintenance issues.
The aviation sector has also faced rising charges from the Aviation Security Service and Civil Aviation Authority, as well as airport levies, fees, and charges.
Yesterday, air traffic management provider Airways NZ proposed a 7.7% annual price increase for airline customers.
Lister said most CEOs had a challenging job but a major airline executive had to navigate many unpredictable and uncontrollable factors.
“You’ve got demand, you’ve got oil prices, you’ve got currency, the ebbs and flows of tourism, the huge need for safety.”
Lister said the airline would likely seek someone with proven management experience, and not necessarily from within the aviation sector.
Lister said he hoped Foran did not join the brain drain after stepping down in October.
“’He would actually be a very sought-after board member ... Hopefully he stays in New Zealand.”
