Coronavirus: 'This is different,' Air NZ CE says as he takes pay cut as bookings tumble
Air New Zealand's CE Greg Foran has offered to slash his base pay, as the airline moves to cope with falling demand as a result of the coronavirus. The airline announced on Monday that it was suspending its full-year profit forecast because of uncertainty over how long bookings might be reduced because of Covid-19. Foran, a New Zealander, was head of the US operations of retailer Walmart, leaving a US$13m annual salary to take up his role at Air New Zealand last month. He has offered to slash his $1.65m base pay by $250,000, a 15% pay cut, and the airline's executive team will extend a freeze on their salaries that has been in place since May 2019. Other measures the airline is taking include offering operational staff the chance to take unpaid leave, and a hiring freeze on non-critical roles. Foran said it was a significant event and different from challenges Air New Zealand had faced in the past, such as Sars or the global financial crisis. "This is affecting every part of the world... this is different but it doesn't mean we are not equipped to deal with it." He said Air New Zealand continued to make capacity changes but was not flying empty planes to retain airport slots, as it has been reported other airlines around the world are doing. The airport was offering flight discounts where it needed to, to stimulate demand. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-03-09/star/coronavirus-this-is-different-air-nz-ce-says-as-he-takes-pay-cut-as-bookings-tumble
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Coronavirus: 'This is different,' Air NZ CE says as he takes pay cut as bookings tumble
Air New Zealand's CE Greg Foran has offered to slash his base pay, as the airline moves to cope with falling demand as a result of the coronavirus. The airline announced on Monday that it was suspending its full-year profit forecast because of uncertainty over how long bookings might be reduced because of Covid-19. Foran, a New Zealander, was head of the US operations of retailer Walmart, leaving a US$13m annual salary to take up his role at Air New Zealand last month. He has offered to slash his $1.65m base pay by $250,000, a 15% pay cut, and the airline's executive team will extend a freeze on their salaries that has been in place since May 2019. Other measures the airline is taking include offering operational staff the chance to take unpaid leave, and a hiring freeze on non-critical roles. Foran said it was a significant event and different from challenges Air New Zealand had faced in the past, such as Sars or the global financial crisis. "This is affecting every part of the world... this is different but it doesn't mean we are not equipped to deal with it." He said Air New Zealand continued to make capacity changes but was not flying empty planes to retain airport slots, as it has been reported other airlines around the world are doing. The airport was offering flight discounts where it needed to, to stimulate demand. <br/>
