Air NZ silent on sudden departure of senior staff

By CHRIS DANIELS aviation writer

The head of one of Air New Zealand's most consistently profitable and successful divisions - engineering services - has left the company suddenly.

The airline has offered no explanation for his departure.

John Mounce, the airline's engineering services vice-president, left last month.

No announcement was made to the stock exchange and his departure was revealed only yesterday by industry newspaper Aviation News. Reports of a management shakeup, due to be announced this week, had already been circulating.

Mounce is widely respected in the aviation industry and is said to have played an important role in winning lucrative maintenance and aircraft overhaul business from other airlines.

The loss of his experience and contacts in the world aviation industry is seen as a real loss to the business.

Air NZ often promotes the earning potential of its engineering division to shareholders and investment analysts as it seeks to improve its share price.

Mounce told the Business Herald last night that he was unable to comment on his departure, as he had signed a confidentiality agreement.

It is not the only loss of senior staff on the engineering side of Air NZ.

The chief executive of subsidiary Safe Air has also just left. Brent Earnshaw has gone to head a new Qantas engineering base in Brisbane.

Air NZ is seen as unique in having such a comprehensive and well-regarded engineering division for such a small airline. Thanks to its staff and the low value of the kiwi dollar, earnings from engineering services have helped Air NZ to weather some tough times that might have sunk other airlines of a similar size.

In the past year, the division contributed earnings before interest and tax (ebit) of $48 million, from revenue of $532.9 million. Air NZ's group ebit was $233 million, from revenue of $3.61 billion.

Company spokesman Glen Sowry said Mounce had resigned, and a suitable candidate for his replacement was being sought.

The position is being filled on an interim basis by Trevor Hughes, vice-president of finance and IT (operations and technical division).

The future of engineering services under any alliance plan with Qantas may be one of the causes of friction between senior managers such as Mounce and Craig Sinclair, the airline's senior vice-president (operations and technical).

Sowry rejected this, saying that it was "definitely not" behind the resignation.

The Commerce Commission is due to announce its decision next week on whether Air NZ and Qantas can join forces.