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Air New
Zealand will soon begin a global search for a new chief executive
following the decision by Ralph Norris to resign and head to
Australia.
Norris is leaving the 82% government-owned airline after three
years to take the top job at Commonwealth Bank of Australia.
But the 56-year-old said he wasn't leaving Air NZ "in the lurch"
because he never intended to be a long term fixture.
The timing was right because he had overseen the restructure of Air
NZ - which was close to failing four years ago and had to be bailed
out by the government - and its return to profitability.
"I feel as though my work is done - I would have been moving on
anyway within the next six to nine months," Norris told
journalists.
The man with more than 30 years of banking experience under his
belt will receive a base annual salary of $A1.9 million ($2.05
million) to lead Australia's second largest bank, as part of a
package worth $A7.6 million ($8.2 million).
That's more than double the base pay of $1 million he earned at Air
NZ last financial year.
Air NZ chairman John Palmer said the airline needed the new CEO to
capitalise on its recovery.
"Air New Zealand's financial position has never been stronger, with
good liquidity and one of the best balance sheets in the industry,"
he said.
"Now is an appropriate time for the company to be seeking a new CEO
to drive the business in what continues to be a very challenging
and highly competitive environment."
Air New Zealand is still to appoint headhunters to conduct the
search but Heidrick & Struggles, the executive recruitment firm
which led the last CEO search in 2001, could be tapped again.
"It's a global search but internal candidates will have the
opportunity to take part," an airline spokesman said.
One possible replacement is New Zealander and former Air NZ
executive Ray Webster who last month announced he would stand down
as chief executive of UK low cost carrier EasyJet after 10 years
with the airline.
Outgoing British Airways chief executive Rod Eddington has been all
but ruled out because of his statement earlier this year that he
did plan to run another airline.
Inside Air NZ, potential candidates include chief financial officer
(CFO) Rob McDonald, group general manager airlines Rob Fyfe, group
general manager ventures Craig Sinclair and group general manager
sales and marketing Norm Thomson.
But Sinclair and Fyfe are seen as weak candidates because both have
been at the airline for less than three years, analysts said.
McDonald has 10 years at Air NZ but less than a year as CFO while
Thomson has spent 30 years at the airline.
"There are thin pickings in terms of experience," one analyst
commented of the airline's current management.
Another name mentioned was Air NZ deputy chairman Roger
France.
Aviation analysts agreed Norris, who has to give six months notice,
was leaving the airline in good shape.
"A lot has been achieved," said Andrew Miller, chief executive of
the Centre for Asia Pacific Aviation.
"But the profitability of the organisation has been flat over the
past two years."
Air NZ is forecasting a fiscal 2005 profit before unusual items of
tax around $220 million, in line with the previous year.
