Air New Zealand CEO resigns unexpectedly; global hunt for replacement begins

Air New Zealand has announced that CEO Greg Foran will step down in October after five years of steering the airline through a period of significant turbulence. The abrupt departure comes as the airline grapples with ongoing global supply chain disruptions and engine maintenance challenges that have impacted its operations.

Foran, a former Walmart executive, took the helm of the Kiwi flag carrier in early 2020, just as the COVID-19 pandemic began disrupting the aviation industry. Under his leadership, the airline navigated border closures, economic downturns, and operational setbacks, including persistent shortages of engine components and the recent grounding of up to 11 aircraft.

Air New Zealand’s chair, Dame Therese Walsh, praised Foran’s contributions, highlighting his role in mitigating the impact of supply chain constraints on passengers and airline operations.

“While these challenges impact our operations almost daily, Greg’s relentless focus and global profile have been instrumental in mitigating the consequential disruptions on our customers,” Walsh said.

During his tenure, Foran also led key initiatives to enhance the airline’s fleet and customer experience. He spearheaded a major retrofit program for the airline’s Boeing 787 Dreamliner fleet, which is set for completion later this year. Despite these efforts, the airline continues to face intense competition from Australian rivals Qantas Airways and Virgin Australia, alongside the ongoing struggles of operating in a geographically isolated market.

Foran’s resignation comes at a critical time for Air New Zealand, which in February reported an 18% drop in first-half profit. The decline reflects broader challenges in the aviation sector, particularly ongoing global engine maintenance issues affecting Airbus neo and Boeing 787 Dreamliner fleets. The airline’s aircraft rely on engines from Pratt & Whitney and Rolls-Royce, both of which have been hit by supply chain delays.

Air New Zealand has not yet named Foran’s successor but confirmed that a global search is underway to find the airline’s next CEO. The leadership transition will be closely watched as the airline seeks to stabilize operations, maintain its competitive edge, and navigate the lingering effects of supply chain disruptions on its fleet.

Foran’s departure marks the end of a challenging yet transformative chapter for Air New Zealand. His successor will inherit the complex task of sustaining recovery efforts while positioning the airline for long-term growth in an evolving global aviation landscape.