Act now over Air NZ payouts: director

By PAULA OLIVER

At least one Air New Zealand board member wants the issue of retirement payouts to directors settled immediately.

Last week it was revealed that the airline's constitution allowed for directors to be entitled up to three times their annual directors' fees when they leave - a bill that would total hundreds of thousands of dollars if it was met.

The decision on whether the golden handshakes go ahead will be made by the new board.

But after sharp criticism from the Government, the payments appear unlikely to be supported by some board members.

Independent director Sir Ron Carter, who is not retiring, told the Herald yesterday that the issue needed to be confronted immediately.

"You have to be able to justify payments - and it could be difficult to support them."

Former board member Philip Burdon has said he will refuse any payment if it is offered.

Former chairman Sir Selwyn Cushing, who could be eligible for about $500,000, has refused to discuss the issue.

Other board members could not be contacted yesterday.

The payouts are expected to be discussed during the first meeting of the streamlined Air NZ board early this week.

Meanwhile, the airline came under fire from a new direction yesterday when Australian rival Qantas swooped on its lucrative frequent flyer passengers.

Qantas unveiled a campaign to woo New Zealanders to its frequent flyer programme by waiving the $50 joining fee and doubling its air points for a limited time.

The move did not surprise lobby group Save Our Air Points, which claimed that Air NZ had been "disappointingly silent" on the future of its loyalty programme.

Spokesman Steve Saunders said the national carrier risked losing market share if it did not tell customers that points were safe.

The group claims to represent 300,000 air points programme members owed more than $56 million in incentive travel. Air NZ has consistently said it is honouring air points. It wrote to holders more than a week ago to reassure them.

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