'He deals in facts': Experts rate Air NZ boss Greg Foran's performance after two years on the job
This time two years ago Air New Zealand delivered its first financial result which mentioned Covid-19. CE Greg Foran had been in the job for less than a month and in that time the airline had suspended flights to Shanghai and Seoul and reduced capacity to Hong Kong and Japan as the virus spread. The company had just posted a $101m half year profit, and said it expected to take a $35m to $75m hit because of Covid-19. A few weeks later the WHO declared the Covid-19 outbreak a pandemic and, as countries closed their borders in an effort to keep the virus out, the global aviation industry collapsed. Air New Zealand was hit hard with revenue plummeting from $6b to $1b and its network slashed by 95%. It wrote off an entire fleet of aircraft and let go more than 4000 of its 12,000 staff. But the Crown’s 52% shareholding provided a safety net for the national carrier with the Government stepping in early on with a $900m loan, which has since grown to $2b. Forsyth Barr analysts Andy Bowley and Matt Noland said in a research note Air New Zealand would report a “significant loss” when it released its 2022 first half result on Thursday. They expect it to include a trough in passenger revenue as a result of border closures and the extended Auckland lockdown.They estimated the company would report an underlying after tax loss of $131m but said there was a higher margin of error than usual with Air New Zealand. They recently said they expected the airline’s pre-tax loss to widen to $791m for the year to June, following its $440m pre-tax loss last year. They also expect Air New Zealand’s planned capital raise will require new equity of $1b to $1.2b. For Foran, leading Air New Zealand through a pandemic is a world away from his previous role as Walmart US president. Story has more. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-02-23/star/he-deals-in-facts-experts-rate-air-nz-boss-greg-forans-performance-after-two-years-on-the-job
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'He deals in facts': Experts rate Air NZ boss Greg Foran's performance after two years on the job
This time two years ago Air New Zealand delivered its first financial result which mentioned Covid-19. CE Greg Foran had been in the job for less than a month and in that time the airline had suspended flights to Shanghai and Seoul and reduced capacity to Hong Kong and Japan as the virus spread. The company had just posted a $101m half year profit, and said it expected to take a $35m to $75m hit because of Covid-19. A few weeks later the WHO declared the Covid-19 outbreak a pandemic and, as countries closed their borders in an effort to keep the virus out, the global aviation industry collapsed. Air New Zealand was hit hard with revenue plummeting from $6b to $1b and its network slashed by 95%. It wrote off an entire fleet of aircraft and let go more than 4000 of its 12,000 staff. But the Crown’s 52% shareholding provided a safety net for the national carrier with the Government stepping in early on with a $900m loan, which has since grown to $2b. Forsyth Barr analysts Andy Bowley and Matt Noland said in a research note Air New Zealand would report a “significant loss” when it released its 2022 first half result on Thursday. They expect it to include a trough in passenger revenue as a result of border closures and the extended Auckland lockdown.They estimated the company would report an underlying after tax loss of $131m but said there was a higher margin of error than usual with Air New Zealand. They recently said they expected the airline’s pre-tax loss to widen to $791m for the year to June, following its $440m pre-tax loss last year. They also expect Air New Zealand’s planned capital raise will require new equity of $1b to $1.2b. For Foran, leading Air New Zealand through a pandemic is a world away from his previous role as Walmart US president. Story has more. <br/>
