Chris Jasper/London Paul Phelan/Cairns
Air New Zealand (ANZ) and Ansett Australia are to come together under a single business structure while remaining separate operations. The move, following ANZ's recent purchase of Ansett, coincides with the completion of Singapore Airlines' (SIA) purchase of 16.7% of ANZ, taking its total stake to 25%.
ANZ executive chairman Sir Selwyn Cushing says the integration of the two airlines, effective from 14 August, will "deliver increased earnings" of NZ$256 million ($116 million) annually over one to three years.
The new ANZ/Ansett structure comprises three core units coordinating commercial, technical and operational strategies, supplemented by "special purpose business units". One unit, 'Australasia', will coordinate the group's three domestic airline operations - Ansett Australia, Ansett regional and ANZ domestic. Of the other units, ANZ International and Ansett International will operate separately, while cargo, terminal services and Ansett New Zealand Engineering Services (ANNZES) will provide integrated services to airline units and third parties.
A senior Ansett source claims to be happy with the new form, describing it as "a standard airline group structure". The source adds that a full merger would go ahead "tomorrow" if the regulatory regime allowed.
The new ANNZES unit will bring together four sites - Auckland, Brisbane, Christchurch and Melbourne - and will localise maintenance by aircraft and engine type, rather than airline. Component overhaul will also be merged.
In personnel terms, the old structure of two chief executives (CEOs) and 30 'level one' managers will be replaced by a single CEO and 17 top managers. The senior position, vacated when Jim McCrea resigned, has yet to be filled, but sources suggest Cathay Pacific's Tony Tyler is in the running.
Senior Australian appointments are limited to Ron Rosalky, general manager (GM) Australian regionals; Gary Kingshott, GM Ansett International; and Trevor Jensen, group GM operations and technical.
Australian departures include Craig Wallace, executive GM commercial planning; David Irvine, chief financial officer and Paul Birch, EGM ground services. Ansett's stature is nevertheless recognised, with Australasia, probably the biggest single business, to be based in Melbourne.
SIA's purchase of 'B' shares worth NZ$285 million from Brierley Investments takes its stake to the limit for overseas investors, though it may push for 40%. SIA CEO Cheong Choong Kong and two colleagues join the ANZ board.
Source: Flight International
