Air New Zealand CEO Greg Foran Steps Down

Air New Zealand's chief executive, Greg Foran, has resigned.

He will quit the airline on October 20, 2025, after five years at the leadership.

Chair Dame Therese Walsh stated that Foran informed the Board that he considered the airline was well-positioned to continue its development and innovation trajectory, and that the time had come for him to take on a new challenge.

Therese stated, "Greg has always demonstrated exceptional leadership and grit, not only guiding Air New Zealand through global aviation's most significant crisis but also upholding the airline's tradition of innovation, strong culture, and care for our country."

"As I would expect from Greg, he has been very accommodating with his notice period and will stay with Air New Zealand until the middle of October. This authorizes the Board to conduct a global search for his replacement, which we will begin immediately.

"The timing also allows Greg to assist with the transition to a new leader. In the meantime, Greg will continue to manage Air New Zealand with the same devotion and intensity that has distinguished his tenure here," Therese said.

Foran stated, "Leading Air New Zealand has been one of the greatest honors of my career. It has been a fantastic experience to work with such a talented group of people. I am really happy with what we have accomplished together and how we have positioned Air New Zealand for the future.

"I am humbled by the work that Air New Zealanders perform every day and their amazing dedication to one another, our customers, and our country.

“Despite so many issues outside of our control, we have continued to deliver improvements to our service every day. I'll leave later this year knowing Air New Zealand's foundations are immensely strong and its future very bright. It has been an honor to serve our customers, our 11,500-strong team, and New Zealand. I will look back on my time here with immense pride and gratitude." Finance Minister Nicola Willis said she heard the news earlier on Thursday. "Greg has done a good job at Air New Zealand and through challenging times and I wish him well for the future. I'm sure that they will [have] a good transition to a new chief executive." She said she was not shocked by Foran's decision.

"Those chief executive roles are incredibly demanding. Greg Foran is a globally seasoned CEO who has a variety of alternatives for future employment. Air New Zealand has come through Covid at a period that was extraordinarily challenging for the aviation sector and then the difficulty it's had with engineering, troubles in terms of acquiring engines, getting planes. It's been a difficult moment for any leader, and each leader determines when it's time to depart."

Foran, 63, started as chief executive of Air New Zealand on February 3, 2020, replacing now-Prime Minister Christopher Luxon.

He was previously the CEO of Walmart US from 2014 to 2019.

At the time of his appointment, he described Air New Zealand as one of the world's great airlines.

"I want Air New Zealand to continue to be at the forefront of its industry across the world and to deliver strong commercial results in the process."

He recently told the Between Two Beers podcast that he knew nothing about airlines before taking the role.

"I couldn't even tell you the difference between a 787 and a 777."

He stated that the day before his first day, he was informed that the airline was suspending daily flights to Shanghai because of the outbreak of COVID-19 in Wuhan, China.

"We get through that week, and then the next Monday, we're back in the same room. The discussion goes, 'We're going to have to shut down Korea'."

"In the following few weeks, it will be Japan and Singapore, and the discussion is that it is fine because we still have America.

"Then it was about Saturday the 20th of March. The phone goes, I can remember. I was down in Rotorua doing a bit of a tour around, and it's the Prime Minister on the phone, and Jacinda says, 'I'm just giving you heads up, we're going to close the country.'"

The epidemic was only the beginning of the challenges Foran faced throughout his term.

In July 2023, engine manufacturer Pratt & Whitney revealed a problem affecting up to 700 engines worldwide.

Due to engine availability as a result of P&W maintenance issues, the airline would have to ground four aircraft at any given moment.

It required the airline to wet lease planes from Wamos for its Auckland-Perth route.

There were also concerns with the Rolls-Royce Trent 1000 engines utilized in the 787-9 Dreamliners.

In December, Foran informed Stuff Travel that it needed to bring on at least three [Boeing] 777s that had previously flown for Cathay Pacific to keep its schedule operational.

"Those planes come with different seats and galley carts, so you'll need other parts. All of this complicates matters considerably.

"We receive some compensation. It does not pay for the disruption, which has been one of our issues in meeting profit expectations. We receive compensation in the form of cents on the dollar."

When the company's half-year results were released in February, Foran stated that the aircraft groundings had made it a difficult year thus far.

"Investing in modern, fuel-efficient aircraft is an important component of Air New Zealand's fleet strategy." But with over $1 billion in our newest, most efficient aircraft grounded at times, it's been a difficult year so far. Delivering the performance we have while retaining such a strong balance sheet is a true testament to our staff, and I am proud of what we have accomplished."

Looking ahead to the rest of the fiscal year, Foran acknowledged that 2025 would be particularly hard financially as the airline negotiated its first full 12-month period with up to 11 jets (six narrowbodies and five widebodies) out of service at any given moment.

"This is a considerable number of aircraft on the ground, but we are continuing to take steps to strengthen our operations by adjusting schedules, leasing more engines, and prioritizing customer experience enhancements. Despite these difficult circumstances, there is plenty to look forward to in the coming months."

By next year, Air New Zealand plans to upgrade more than half of its Boeing 787 Dreamliner fleet with new cabin furnishings, including the latest Business Premier Luxe™ seats.

Additional leased engines were due to arrive soon to improve network resilience, and a new uniform would be announced in the following months. The airline also planned to test innovations such as digital bag tags and onboard domestic Wi-Fi, as well as the arrival of an all-electric demonstrator aircraft in the middle of the calendar year.

"The road ahead is not without obstacles, but our balance sheet strength, our clear strategic priorities, and the skill and commitment of our team position us well to navigate the year ahead," Foran told investors.

Foran hasn't been reluctant to step out from behind the desk either.

In January 2023, he was sighted clearing a luggage backlog at Auckland Airport.

A spokeswoman for the airline stated that the labor was part of the airline's volunteering program, which works during peak travel seasons.

On his first day, he worked a cleaning shift and flew on many domestic flights, offering tea and coffee to customers.

"Hundreds of Air New Zealanders from across our business, including Greg and members of our executive team, have been volunteering to help our teams at Auckland Airport over this busy holiday period," they told me.

In a letter to passengers in the March 2020 issue of the airline's inflight magazine, Kia Ora Foran wrote:

"One of the most rewarding components of my job is working directly with customers and employees. Don't be surprised to see me working with our Cabin Crew on flights, checking clients in at airports, or greeting everyone who arrives or departs from Koru lounges.

"When I'm not working with passengers, you might see me assisting our Baggage Handlers with aircraft loading or assisting the Cleaning Crew in cleaning our aircraft between flights. "You might even find that my voice appears on calls to our Contact Centre," Foran stated.