Air NZ stops contract work for Saudis

WELLINGTON: Air New Zealand chief executive Greg Foran has confirmed a contract and work on engines for Saudi military has been terminated.

Prime Minister Jacinda Ardern has ordered the Ministry of Foreign Affairs to investigate whether Air NZ had breached any international obligations after revelations it was doing work — through a third party — for the Saudi Arabian navy.

Air NZ admitted its gas turbines unit had been working on two engines and a turbine module belonging to the Royal Saudi Navy after a $3 million contract was signed off in 2019.

The same navy had been blocking food and medicine getting into Yemen, which was in the throes of a humanitarian crisis due to a longrunning civil war.

Air NZ chief executive Greg Foran said last night the contract had been terminated. Work on two engines was already complete but work on the turbine module had stopped.

‘‘That will be sent back to the third party where we took the work from and it won't be complete,’’ Mr Foran said.

‘‘This is very unfortunate, but I can stress [this is] not a coverup,’’ he said.

‘‘I don't think it's in the interests of either Air New Zealand or its shareholders to be working on engines that are going into navy ships for the Saudi Arabian navy.

‘‘We do actually work on other navy ship vessels, so we do a lot of work with the US, we do work with Australia and . . . it's a matter of judgement.

‘‘And I think as we reflect on this one, [it] is not appropriate.’’

There would be an investigation into the airline's processes by an external auditor. — RNZ