Norris moves on from Air NZ

Ralph Norris. Herald file picture

Air New Zealand chief executive Ralph Norris has resigned to take up a position as chief executive of the Commonwealth Bank of Australia.

Air New Zealand chairman John Palmer said the search for a replacement chief executive would begin almost immediately.

A departure date for Mr Norris has not yet been determined, but Mr Palmer said he had a a six-month notice provision in his contract.

Mr Norris was appointed Air NZ's chief executive in February 2002. Before that he headed up CBA's New Zealand subsidiary ASB Bank.

Mr Norris said today he had never envisaged a long-term tenure at the top of Air NZ.

"Rather, I saw my challenge as getting the airline back on track to being a world class operation, and then handing over to a new generation of leader," he said.

During his time at Air NZ, Mr Norris oversaw a strategic overhaul of the company and a failed attempt to form an alliance with Australian carrier Qantas.

Mr Palmer today expressed his appreciation for Mr Norris' contribution to turning around the airline.

"He leaves the airline at a time when it is financially sound, has exciting and achievable corporate strategies for its short-haul and long-haul services, and a first class management team that is well down the track of modernising every aspect of the company's business operations," Mr Palmer said.

Mr Norris' remuneration package at CBA will include a base remuneration of A$1.9 million ($2.07 million) a year, a discretionary annual cash short term incentive of up to A$1.9 million and an initial long term incentive allocation of bank shares to the value of A$3.8 million.

Remuneration is subject to shareholder approval, achievement of performance hurdles determined by the board and any necessary regulatory consent.

Mr Norris will replace David Murray at CBA, who today announced his retirement after 13 years in the role.

- NZPA