After a year of turmoil, Air New Zealand (ANZ) has lowered its sights and entered a quieter phase. Its board, now dominated by government-approved directors, has adopted a new five-year business plan designed to restore profits.
The plan itself remains under wraps pending government approval, but will refocus the carrier on core operations. The government is slated to complete its takeover in January when it buys up to NZ$585 million ($245 million) in new shares to finish the airline's recapitalisation.
ANZ has already shrunk its management structure from 12 to 6 operating units. By year-end it will lay off about 800 staff, including 400 managers, from an initial workforce of 10,000.ÊWith the loss of its Ansett subsidiary, ANZ will be half its former size.
The first priority for Roger France, interim chief executive, has been to restore stability. A NZ$300 million government loan, settlement of claims with Ansett, renewed lines of credit, and an end to public finger-pointing have all helped restore confidence among shareholders, suppliers, and customers.
But the strategic questions remain. Chief among these are access to the large Australian market and ANZ's ability to compete against its perennial, and now much stronger, rival Qantas Airways.
Source: Airline Business
