Air NZ chose a virtual annual shareholders’ meeting this year. Photo \/ MUFG.COM. Air NZ, screenshot<\/p>\n
The meeting was told the airline would this year most likely have been on a path to profit were it not for the Middle East crisis sending jet fuel prices soaring.<\/p>\n
Former Air India chief executive Campbell Wilson and former Air NZ chief financial officer Rob McDonald were present, as the airline moved to have them join its board<\/a>.<\/p>\n McDonald blasted \u201cthe failure of successive Governments\u201d to take on airports.<\/p>\n The airline\u2019s leaders have in recent months spoken of focusing on controlling what they can control.<\/p>\n Middle East geopolitics and oil refinery crack spreads are seemingly not within that sphere of the controllable.<\/p>\n But airport pricing is a different matter and aviation system costs were again cited as one of the airline\u2019s chief bogeymen.<\/p>\n \u201cAir New Zealand is unique by world standards,\u201d McDonald added. <\/p>\n He said the whole country needed Air NZ to be successful.<\/p>\n \u201cSuccess is not preordained. It takes ambition, hard work and bold decisions.\u201d<\/p>\n Wilson said before his Air India stint, he had seven years at Singapore Airlines\u2019 budget stablemate Scoot.<\/p>\n \u201cWe took it from an excel spreadsheet to a fleet of nearly 70 aircraft.\u201d<\/p>\n One question from a virtual audience member was if Wilson\u2019s performance at Air India had been considered.<\/p>\n In June last year, 241 people on board were killed when Flight 171 from Ahmedabad to London Gatwick Airport crashed.<\/p>\n Walsh said Wilson\u2019s India experience \u201cabsolutely\u201d had been considered. <\/p>\n \u201cHe has strong experience in Asia which is one of our key markets.\u201d<\/p>\n Wilson told the annual shareholder meeting (ASM) that any airline wanting to be world-class had to demonstrate \u201coperational consistency and execution consistency\u201d.<\/p>\n Another question was from a shareholder who said Air NZ cabin crew \u201cdo not appear as warm or welcoming\u201d as Air Canada\u2019s and cabins were too cramped.<\/p>\n \u201cWe monitor the views of our customers very closely,\u201d Walsh replied.<\/p>\n \u201cOur customer feedback and our customer standing has been improving over the last couple of years.\u201d<\/p>\n Asked about battery electric aircraft such as last summer\u2019s Cook Strait trial with the Beta Alia CX300, Walsh said: \u201cWe\u2019ve completed that programme and don\u2019t have any future plans.\u201d<\/p>\n It had been a fact-finding mission, she said.<\/p>\n Another question was about when services to London might resume. <\/p>\n \u201cWe review our network regularly. London remains within that consideration set,\u201d Walsh said.<\/p>\n Shedding more light on what the consideration set entailed, she added: \u201cWe\u2019re not looking to operate London any time soon.\u201d<\/p>\n Walsh also pointed out that Christchurch, not Auckland, had been the city of choice lately for new widebody services. <\/p>\n The airline leaders did emphasise the widebody fleet of 777s and 787s was back at full strength with interior refurbishments progressing.<\/p>\n Only one narrowbody is still grounded, marking a big change from years of crippling engine issues.<\/p>\n The choice of virtual rather than hybrid meeting again usurped the conversation.<\/p>\n A New Zealand Shareholders\u2019 Association member said \u201cshareholders view hybrid costs as good costs\u201d.<\/p>\n Another question asked when Air NZ would start \u201cmaking healthy earnings\u201d again.<\/p>\n \u201cWe have no guidance,\u201d Walsh replied.<\/p>\n Air NZ chief executive Nikhil Ravishankar said the airline had made some savings on labour costs.<\/p>\n \u201cRecently we\u2019ve had to go through another round of restructure. But the rate of change delivery across the airline has not slowed down.\u201d<\/p>\n He added: \u201cTo stay competitive in the airline industry we\u2019ve got to do the basics right\u201d and \u201cthe thing that is not replicable by any other airline is our very unique Kiwi hospitality\u201d.<\/p>\n About 98 minutes in: \u201cWhen will Cookie Time cookies return to domestic routes?\u201d<\/p>\n \u201cThe Cookie Time cookie is frequently offered,\u201d Walsh said. \u201cIt is part of a suite of products we offer.\u201d<\/p>\n So, not much guidance on that, or many things else, as the airline faces volatile jet fuel prices while trying to claw its way back from years of upheaval.<\/p>\n