Flight Centre's NZ chief axed

The Flight Centre, hit by poor profits from its New Zealand operations, has launched a restructuring drive that has seen the company's local boss get the axe.

A profit fall across the Australian-based company's international operations has prompted the move, which could see the merging of Australasian back-office work.

Company spokesman David Burns said the position of New Zealand managing director Graeme Moore was the only one that had gone as a result of the plan.

It was possible no other jobs in the New Zealand operation would go, as work now being done in Australia might move here.

Front-line staff would not be affected by the move, he said, but the buying of hotel room nights could be one area to be merged.

This week, Flight Centre reported a net profit of A$30.5 million ($33.4 million) for the first half of its financial year, compared with A$34.1 million previously.

Its Australian and British operations were up strongly, but profit was hit by a 16 per cent drop in New Zealand operations, an 11 per cent fall in South Africa and poor results from its operations in Canada and the United States.

This month, Flight Centre was forced to abandon its trademark "Lowest Airfares Guaranteed" slogan in Australasia after complaints it was inaccurate. It now promises to match any airfare offered by rivals.

All parts of the New Zealand business will now report directly to divisional heads, rather than to an executive general manager based here.

In a company statement issued yesterday, the departing Moore said that "while alternative positions had been suggested in New Zealand and Australia, his family commitments and desire to continue in a challenging leadership role in New Zealand meant he would seek other opportunities".

Burns said new technology would be a big part of the restructuring moves.

"We are moving with the times of travel. It's a matter of having to. Our environment has changed substantially.

"We still fundamentally believe in the retail model we have, although we are developing our own e-commerce channel."