Air New Zealand chief executive Christopher Luxon announces his resignation
Wednesday, 19 June 2019
Air New Zealand chief executive officer Christopher Luxon resigned on Wednesday evening, hinting at a possible future in politics.
He will step down from day-to-day leadership of the airline on September 25.
In a video message sent to staff, he said it had been seven years to the day since he was announced as the new CEO of Air NZ. The company had seen massive success since then.
'We've grown our customer base and our network, we've grown the value of the company and we've generated strong returns for our investors,' he said.
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'I know I am going to get a lot of questions about where to next for me, so I am keen to be quite upfront about that. Obviously, job number one is to stay focused and finish strongly at Air New Zealand so we are set up for more success going forward. Then I'm going to take the summertime to refresh and recharge, and then reflect on what I will do next,' Luxon said in a media release.
'I am now 48-years-old and my wife Amanda and I are at an interesting time in life. Our children will both have finished high school and so we will have a new degree of freedom, including career choices. Thus, I would like to think more about how I can best use my skills, abilities and experience to make a further contribution to the success of New Zealand whether that be through corporate life, politics or a not for profit.'
It has previously been speculated that Luxon has ambitions to join the National Party and 'do a John Key', starting with the 2020 election.
It's understood the National Party is keen to get Luxon on board as an MP.
Jami-Lee Ross' seat in Botany, considered a safe National seat by the party, will have a selection race running around the end of summer, when Luxon said he would make a decision about what to do next.
Luxon has overseen a long run of success for Air New Zealand. It was one of the few airlines that was able to remain profitable through the global financial crisis.
But there had been indications that its fortunes were turning.
It recently launched a new Seoul route.
Luxon was the highest-paid chief executive of any company on the New Zealand stock exchange last year, earning $4.2 million.
Chairman Tony Carter said Luxon has made an outstanding contribution to the airline, which has experienced a period of enhanced profitability, strong dividends to shareholders, record customer satisfaction scores, outstanding brand health and the best corporate reputation in New Zealand and Australia during his seven-year tenure.
'It was on this day seven years ago that Christopher's appointment to the role of chief executive officer of Air New Zealand was announced,' Carter said.
'The opportunity to lead New Zealand's most iconic company will attract many great candidates both internationally and within New Zealand. The board has commenced an international search and expects to be in a position to announce the appointment of a new chief executive in the near future.
'Further, Christopher will be in the role until September 25, and then he will move to advising and supporting the incoming chairman and new chief executive so we have a seamless transition and are set up well for further success.'
Luxon said he was incredibly proud of what Air New Zealand had achieved under his tenure.
'Our customer-centricity, commercial focus, and highly engaged culture have made Air New Zealand the most revered company in our part of the world as reflected in our corporate reputation rankings on both sides of the Tasman.
'It has been an awesome journey and what we have achieved by working together with a common goal of supercharging New Zealand's success economically, environmentally and socially has been nothing short of remarkable.
'I have absolutely loved the responsibility and experience of leading this company over the last seven years. It has been intellectually challenging, people centred and an absolute privilege to do this job. However, I do feel it is the right time for a new leader to take over and preserve and enhance the good things from our past, but also to put their own stamp on the organisation bringing their own personality and emphasis to the role as I did.'
He said the culture at Air New Zealand was 'unlike any other company' and had strengthened as the airline introduced performance management and leadership development programmes, pioneered high-performance engagement with union partners and chose to pay a company performance bonus.
It had also improved its safety record and lifted its commitment to diversity and inclusion.
'All of this has seen Air New Zealand regularly voted as the best place to work in the country. I will miss the friendship and support of all those with whom I have worked with and served.'
Aviation industry consultant Irene King said Luxon's resignation had come as a shock, although there had been some speculation that he was eyeing a career in politics.
During his tenure Luxon had taken Air New Zealand and the aviation industry to a new level, she said.
'He captured the essence of New Zealand,' she said.
The recent decision to lift the ban on tattoos for front line staff was an example of a broader culture shift at Air New Zealand, which also included embracing diversity and environmental concerns, she said.
Under his leadership the 'airline has achieved peak profitability during his period'.
While Air New Zealand had expanded its network under its Pacific Rim strategy to reach deeper into the United States with new routes to Houston and Chicago, as well as to Buenos Aires, Argentina and more points to Asia, including Taipei, Luxon's most significant achievement was the trans-Tasman strategic alliance with Qantas, King said.
The alliance, signed last year, allows passengers to seamlessly travel onwards on the carriers' two domestic networks.
'No one else was able to get that alliance across the line. Many had tried and failed,' King said.
The agreement went some way in replacing Air New Zealand's trans-Tasman alliance with Virgin Australia, which ended acrimoniously.
Air New Zealand and Qantas attempted a more comprehensive alliance in 2003, but was turned down by the Commerce Commission because it was deemed anti-competitive.
But King said there was now a recognition 'that this is the only economical alliance to protect Australasia against the next inevitable down-turn in aviation'.