Air New Zealand CEO Greg Foran resigns amid broader industry challenges
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FILE PHOTO: An Air New Zealand plane is seen taxiing from the international terminal at Sydney Airport in Sydney, Australia, November 29, 2021. REUTERS/Loren Elliott/File Photo
(Reuters) -Air New Zealand announced on Thursday that CEO Greg Foran will step down in October after five years at the helm, as the airline navigates global supply chain disruptions and ongoing engine maintenance challenges.
Foran, a former Walmart executive, has led the Kiwi flag carrier through a turbulent period, with the airline facing unique hurdles compared to its global peers, partly due to its geographic isolation.
New Zealand's relatively small domestic market and intense competition from Australian rivals Qantas Airways and Virgin Australia have intensified the airline's challenges.
Joining Air New Zealand just as the COVID-19 pandemic loomed, Foran tackled a series of crises, from persistent shortages of engine components to the recent grounding of up to 11 aircraft.
He also spearheaded a retrofit program for the airline's Dreamliner fleet, which is set for completion later this year.
The company's chair, Dame Therese Walsh, hailed Foran's contribution in managing the significant global supply chain challenges.
"While these challenges impact our operations almost daily, Greg's relentless focus and global profile have been instrumental in mitigating the consequential disruptions on our customers", said Walsh.
The company has not yet named a successor but confirmed that a global search for a new CEO is underway.
In February, Air New Zealand reported an 18% drop in first-half profit, reflecting the broader impact of global engine maintenance issues affecting its Airbus neo and Boeing 787 Dreamliner fleets.
The airline's aircraft are powered by engines from Pratt & Whitney and Rolls-Royce, both of which have been affected by supply chain delays.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Alan Barona)
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