We are continuing to hire, and bring aircraft back to ease some of our capacity constraints. We’ll be reanimating another two Boeing 777s this year and adding three A321neos which will add 300,000 seats to our domestic network.
We have some ambitious sustainability and digital goals we want to make real headway on. All the while, we’re keeping in mind we need to do this carefully. We want to operate like a Swiss watch and we’re working on building up some basic building blocks to get us there.
Our key focuses this year are to continue work getting our next-generation aircraft in the sky, working with the Government to scope the feasibility of domestic SAF production, retrofitting our Boeing 787 Dreamliners, pushing ahead with our 2024 Boeing Dreamliner order, completing a new hangar at Auckland International Airport and investing in digital capabilities that support our employees and our customer experience.
And we’re working hard to elevate Airpoints, our loyalty programme. It’s a source of untapped potential for new revenue and a superb channel to deliver on our promise of differentiation.
What will be the major challenges and/or opportunities for your industry?
Challenges not unique to aviation are the labour shortage and the global economy slowing down (inflation and cost of living increase). Climate change will continue to accelerate and is why, as an organisation, we’re deeply committed to several long-term sustainability initiatives.
We also have a series of knowns and unknowns, like labour, emissions, and stagflation. But I’m conscious that in this industry, you need to be ready for the next side-swipe. So, building in the muscle and capability to deal with the unknowns remains an ongoing focus.
After three years of living in a limited environment, customers want to travel domestically and internationally. And in these three years, we developed a plan which is now in execution.
We reviewed snacks on board, revamped international menus, adjusted seat offerings, launched a new app and refined our loyalty and customer centre platforms. And this year, we have a host of very exciting activities planned. As I say to the Air New Zealand team, one point for talking, nine points for doing. So now we’re executing our plan with precision.
What are your predictions for 2023?
Travel demand will remain strong, but it would be remiss to think rising inflation and the cost of living won’t have an effect. We don’t have a rule book or crystal ball for what’s going to happen next. We know our customers like travelling point to point and arriving well-rested which is why we’ve worked hard to ensure as an airline, we’re providing the best sleep in the sky regardless of the cabin customers choose to fly in. In 2024, our new Dreamliners will offer a new Business Premier Luxe Suite, a new Business Premier seat and the world’s first Skynest.
What was the most interesting story of 2022?
I want to go back a couple of years to the story I’m most proud of. It was February 2020 - we stopped flying to Shanghai. Five weeks later, we shut down the airline.
We had to farewell a third of Air New Zealanders. A key component of our secret sauce is our employees, and it’s been top of mind not just in 2022, but in fact throughout the pandemic and restart of the airline.
How do we maintain and improve our employee engagement? Not an easy task when you consider we’ve had periods of limited flying, borders opening, closing then reopening again. This is why my most captivating story was the many returning and new Air New Zealand people rejoining the team and getting back into what we love doing most – connecting New Zealand to the world.
As we embark on a new year, I’m particularly pleased that we’re kicking it off with the same level of staff engagement we had pre-Covid. I think that’s an awesome achievement.
What’s the worst mistake you’ve made in business?
No one would have predicted the aviation industry would recover from the Covid pandemic as quickly as it did.
When restrictions eased, customers made it clear there was pent-up demand. When we started reopening our international network and increasing domestic capacity, we did so slowly and carefully.
Retrospectively, I would endeavour to thread the needle more precisely between demand and supply to protect the travel experience our customers have come to love and expect from us.
What would you rate as your greatest success in business?
Understanding the critical importance that culture has across any organisation. It begins with a purpose, your raison d’etre, and then moves into beliefs and values. Setting and cementing these is, in my view, the most important role a leader has. And the most fulfilling part of your job.
Where and how are you holidaying this summer?
Christmas and New Year was our busiest period, so I worked through to help the operation. I’ll be taking some time off next month to spend some quality time with my family.
