A former big-shot at Walmart gives the PM and her team a lesson in leadership and personal sacrifice

The country’s national   airline, Air New Zealand, has scrapped its financial forecasts for the current year because of the uncertainty caused by the Covid-19 virus, as it cuts more services  and  freezes hiring,  Radio  NZ  reported  today.

Last month it cut its forecast of underlying earnings to be  in  the range of $300m-$350m from $350m-$450m, estimating that the virus might cost it as much as $75m.

CEO Greg Foran says the airline is now facing an unprecedented situation and it is difficult to predict future demand.

“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in NZ”

The airline is to make further cuts to services, mainly in Asia where it is suspending flights to China until the end of April, while it will rejig its trans-Tasman services and reduce Pacific and domestic flights.

Capacity into Asia has been cut by 26% and the overall number of seats across the network will be about 10% lower.

Air NZ will also cut costs, with a freeze on hiring, voluntary unpaid leave for operational staff, and eliminating non-urgent spending.

Foran   reiterates Air NZ is a strong and resilient business operated by a world-class team with deep experience, after navigating earlier shocks to its business and industry.

While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand”.

Clearly,  the  airline  sees  the need for  drastic  action  as it  confronts the challenge of   the   coronavirus pandemic.

The element   which impressed  Point of Order   most  about  the airline’s action  is the  decision  of  its CEO   to take  a  voluntary  15%  in his base  salary  of  $1.65m  a  year.

That represents   a  cool $250,000  over  12  months.

It  sets  an admirable  example   for   other    CEOs  to  follow.

And perhaps  not    just    business  leaders …

Wouldn’t  it  be  splendid   if   politicians   picked  up  the challenge   and handed  back   15%   of  their  salaries?

The  government   is said to be  considering  how to target taxpayer  money to  businesses  struggling against  the effects of the pandemic. It  may need to  look at wide-ranging  measures.

Surely    the  PM   Jacinda  Ardern,  noted for   her kindness  and compassion,  will want to be  in the forefront of how to  meet the  challenge facing  the  population?

And  Winston Peters,  always   keen  to  show  he is politically  connected  to  superannuitants,  could  be expected to be on the frontline, too.

Foran    who  only    stepped  into  the  post at  Air  NZ  in  February, came to the role   after   rising to  the  top  of  the  US  giant   Walmart.   The airline  was   lucky  to   land his  services.

Now the nation   should be grateful for his    demonstration  how to be  a  real leader.

2 thoughts on “A former big-shot at Walmart gives the PM and her team a lesson in leadership and personal sacrifice

  1. Yes, that’s a real big sacrifice

    Poor guy, it must be tough getting by on a mere $1,400,000 p.a.

    What this story and your coverage illustrates is not “leadership and personal sacrifice” but the obscene amounts that CEOs think they are worth today

    Mike

    Liked by 1 person

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