Is it mission accomplished for Greg Foran?

Air New Zealand’s $185m interim pre-tax profit was down 38 per cent on last year as it faced more competition and higher costs. While there’s still some Covid flight credit legacy affecting the airline and it continues to be affected by postpandemic supply chain problems, the six-month result and a gloomy full-year forecast compared to last year’s extraordinary profit looks more like the usual volatility for an airline.

Chief executive Greg Foran started work in February 2020, his arrival coinciding with the start of the pandemic, the worst commercial crisis in airline history. Big airline jobs are always busy but in the past four years the airline newcomer has experienced more than most industry executives would in an entire career.

Now Air NZ is in a relatively steady state, does he feel it’s mission accomplished?

Not by the sounds of it. Foran, 62, says there’s still work to do. He’s happy with improving customer satisfaction, has no regrets about sacrificing $40m or more of profit to improve service levels, but is unhappy with any cancellations or aircraft changes.

(And it appears some regional routes are particularly affected as the knock-on affects of jet aircraft engine issues will hit for 18 months. If the airline’s departure board out of Auckland yesterday is an indication, there’s a tiny proportion of flights cancelled — four out of around 120 flights — but that’s cold comfort for those affected. A Kerikeri flight was cancelled and some locals in the north say that’s a growing problem.)

Foran says he’s not happy with the financial outlook for the second half but he’s confident about the strategy (which included putting up domestic fares) and says there’s no shortage of other projects — a long-awaited revamp of Airpoints (the technology engine should be ready for trials in May), new hangars and offices to build a Dreamliner cabin revamp to start mid-year and taking delivery of the first of eight long-delayed new 787s, now scheduled for later next year.

On that hold-up, he says he’s more frustrated than disappointed but not surprised.

The problems Boeing now faces with its 737Max aircraft are adding to the plane maker’s production problems.

In spite of what’s confronted him throughout the past four years, Foran has been unruffled — in public at least — and remains typically stoic about the Dreamliner delays. More leased planes will help fill gaps.

“You can control the things you can and with the things you can’t, you just have to get on and work with them. It just means that we have to work a little bit harder.”

He’s said before he’s in Air NZ until the board wants a change. Is that still the case?

“Absolutely.”