Norris exits ANZ
Ralph Norris has decided to return to the banking industry after bringing Air New Zealand (ANZ) back from the brink.
Viewing himself as playing “a turnaround role”, the airline’s managing director and chief executive says ANZ’s recovery has come faster than he or the board expected. Three and a half years ago the airline was close to failing after the collapse of subsidiary, Ansett Airlines. The New Zealand government had to bail it out, but today ANZ is profitable.
“I feel as though my work is done,” says Norris. “I would have been moving on anyway within the next six to nine months.”
The hunt for a successor has started. Although the search will be global, Norris will be disappointed if his replacement does not come from within the ranks of ANZ’s senior management. “I wanted to make sure that the board had internal successor options, and I believe they do,” he says. He says someone from within the company “will have a strong claim to the job”.
The date when Norris leaves is still under discussion. His contract requires six months notice, but he and the airline’s board are currently negotiating that. He is due to become chief executive at the Commonwealth Bank of Australia before the end of this year, but hopes to make the move around September. Before taking over at ANZ, Norris was head of the Commonwealth Bank’s New Zealand division.
The financial turnaround that Norris achieved at ANZ was the product of a major restructuring. He converted the airline’s domestic operations into one-class low-cost service called Express Class, cut costs on the highly-competitive Tasman route to Australia, and turned over leisure routes to low-cost subsidiary, Freedom Air. Most recently, he launched an overhaul of ANZ’s long-haul operations by revamping its Boeing 747-400 fleet and placing a NZ$1.35 billion ($960 million) order for two 787s and eight 777s, the first of which will arrive about the time he leaves.
Known for his technological savvy in the banking industry, Norris brought similar advances to the airline – management programmes, internet bookings and check-in kiosks. He campaigned hard for the abortive equity alliance with Qantas Airways, but also led the effort to ensure ANZ’s success without it.
Norris sees his main legacy as the strong management team the airline now has in place for the future. “I’m comfortable that I’m leaving ANZ in good hands,” he says.
David Knibb Seattle
Source: Airline Business
