1 00:00:00,280 --> 00:00:02,520 Speaker 1: The information provided in this program is of a general 2 00:00:02,600 --> 00:00:05,320 Speaker 1: nature and is not intended to be personalized financial advice. 3 00:00:05,400 --> 00:00:07,760 Speaker 1: We encourage you to seek appropriate advice from a qualified 4 00:00:07,760 --> 00:00:11,960 Speaker 1: professional to suit your individual circumstances. Auckland International Airport just 5 00:00:12,080 --> 00:00:15,680 Speaker 1: raised one point four billion dollars from investors as part 6 00:00:15,680 --> 00:00:19,439 Speaker 1: of a six point six billion dollar infrastructure plan. Why 7 00:00:19,520 --> 00:00:22,600 Speaker 1: it's biggest customer in New Zealand was surprised. 8 00:00:23,160 --> 00:00:26,440 Speaker 2: Not just in New Zealand, but all customers are actually 9 00:00:27,200 --> 00:00:30,080 Speaker 2: a bit up in arms about the scale and the 10 00:00:30,160 --> 00:00:32,480 Speaker 2: cost of watch what is getting built. 11 00:00:32,800 --> 00:00:36,400 Speaker 1: Speaking of unhappy customers, our reputation is about flat, you're 12 00:00:36,400 --> 00:00:49,879 Speaker 1: happy with that or I The country's largest airport, Auckland 13 00:00:49,920 --> 00:00:54,440 Speaker 1: International has a six point six billion dollar infrastructure plan underway. 14 00:00:54,920 --> 00:00:58,320 Speaker 1: It includes spending two point two billion on upgrading the 15 00:00:58,400 --> 00:01:02,280 Speaker 1: near fifty year old domestic terminal. It's twenty three percent 16 00:01:02,360 --> 00:01:05,440 Speaker 1: complete and is set to open by twenty twenty nine. 17 00:01:05,959 --> 00:01:08,840 Speaker 1: To help cover the cost, the airport just raised one 18 00:01:08,880 --> 00:01:13,280 Speaker 1: point four billion dollars from investors. Institutional investors aid it 19 00:01:13,360 --> 00:01:16,720 Speaker 1: up immediately, investment bankers time where the money was raised 20 00:01:16,760 --> 00:01:20,720 Speaker 1: on the market within three hours. The airport's chief executive 21 00:01:20,800 --> 00:01:23,880 Speaker 1: carry her to Hannui says the upgrades are necessary for 22 00:01:24,000 --> 00:01:25,520 Speaker 1: New Zealand's front doorstep. 23 00:01:25,840 --> 00:01:29,000 Speaker 3: We're improving the customer experience, We're building in resilience and 24 00:01:29,080 --> 00:01:32,440 Speaker 3: really creating the gateway that Auckland and New Zealand needs. 25 00:01:32,600 --> 00:01:35,280 Speaker 3: The transformation is really important for us. Our customers have 26 00:01:35,360 --> 00:01:38,680 Speaker 3: told us very clearly that the domestic travel experience is 27 00:01:38,720 --> 00:01:40,679 Speaker 3: not meeting their needs. And then when we think about 28 00:01:40,680 --> 00:01:43,680 Speaker 3: infrastructure that's going to take us forward thirty forty years, 29 00:01:44,000 --> 00:01:46,399 Speaker 3: we need to be thinking about that now and investing 30 00:01:46,440 --> 00:01:48,440 Speaker 3: in that so that we have a resilient airport for 31 00:01:48,480 --> 00:01:51,160 Speaker 3: the future that our customers enjoy and it's meeting their needs. 32 00:01:51,200 --> 00:01:55,160 Speaker 1: It's signed an eight hundred million dollar construction contract with Hawkins, 33 00:01:55,480 --> 00:01:59,240 Speaker 1: a subsidiary of Downer, to help build it, but Airlines 34 00:01:59,320 --> 00:02:02,240 Speaker 1: and New Zealand and Quantus have slammed the cost of 35 00:02:02,280 --> 00:02:05,080 Speaker 1: the upgrades. Given they will have to partially pay for 36 00:02:05,160 --> 00:02:08,880 Speaker 1: it through increased landing and take off fees. They claim 37 00:02:08,919 --> 00:02:11,760 Speaker 1: the cost, which that add to air fares, will make 38 00:02:11,800 --> 00:02:14,800 Speaker 1: it tourism suffer. When I spoke to In New Zealand's 39 00:02:14,840 --> 00:02:18,120 Speaker 1: chief executive Greg Furan after the deal went live, he 40 00:02:18,160 --> 00:02:19,480 Speaker 1: didn't hide his reaction. 41 00:02:21,600 --> 00:02:23,720 Speaker 2: Well, to be honest with you, I think a decision 42 00:02:23,760 --> 00:02:27,160 Speaker 2: to raise capital is a decision that a company should 43 00:02:27,200 --> 00:02:29,200 Speaker 2: get on and make, and it's not up to me 44 00:02:29,480 --> 00:02:33,320 Speaker 2: to get involved in that particular decision. Maybe the one 45 00:02:33,400 --> 00:02:37,160 Speaker 2: that caught my attention is the contract that was given 46 00:02:37,160 --> 00:02:40,720 Speaker 2: to Hawkins to do the build. And the reason that one, 47 00:02:41,040 --> 00:02:44,880 Speaker 2: I guess catches my eye is that, you know, not 48 00:02:45,040 --> 00:02:48,960 Speaker 2: just a New Zealand, but all customers are actually a 49 00:02:48,960 --> 00:02:52,120 Speaker 2: bit up in arms about the scale and the cost 50 00:02:52,280 --> 00:02:57,040 Speaker 2: of what is getting built. And you know, we don't 51 00:02:57,080 --> 00:02:59,799 Speaker 2: feel that we've got to a point here where we've 52 00:02:59,800 --> 00:03:02,520 Speaker 2: all agreed on what it is that we're doing. Clearly 53 00:03:02,560 --> 00:03:05,680 Speaker 2: Auckland Airport do otherwise they wouldn't have gone and assigned 54 00:03:05,720 --> 00:03:09,480 Speaker 2: the contract to Hawkins. I don't feel that I'm at 55 00:03:09,480 --> 00:03:12,480 Speaker 2: a point, and I'm pretty sure most of the other 56 00:03:12,600 --> 00:03:16,600 Speaker 2: customers who deal with Auckland Airport are in a point 57 00:03:16,600 --> 00:03:19,880 Speaker 2: where they would say, you know what, I'm happy with 58 00:03:19,919 --> 00:03:24,079 Speaker 2: the scale of that particular investment. So a little bit 59 00:03:24,120 --> 00:03:28,760 Speaker 2: disappointed that that's happened, particularly when I feel a lot 60 00:03:28,760 --> 00:03:32,880 Speaker 2: of this is still actually requiring a bit more dialogue. 61 00:03:32,960 --> 00:03:35,360 Speaker 1: But what that contract proved is that they're going ahead 62 00:03:35,360 --> 00:03:38,000 Speaker 1: with it. Whether you are the airlines like it or not, it. 63 00:03:38,040 --> 00:03:40,200 Speaker 4: Feels that's exactly what they're doing. Now. 64 00:03:40,240 --> 00:03:43,120 Speaker 2: You know, we're in the middle of having that backwards 65 00:03:43,160 --> 00:03:45,680 Speaker 2: and forwards, not just with them, but actually through the 66 00:03:45,720 --> 00:03:48,400 Speaker 2: Commerce Commission. So you know, I guess one of the 67 00:03:48,400 --> 00:03:50,800 Speaker 2: things I've learned over the years is that you know, 68 00:03:51,280 --> 00:03:53,800 Speaker 2: you can't please all your customers all the time. I 69 00:03:53,840 --> 00:03:56,920 Speaker 2: can't please every person who travels on in New Zealand Madison. 70 00:03:57,360 --> 00:03:59,960 Speaker 2: I try, but I can't. I do as many years 71 00:04:00,160 --> 00:04:02,880 Speaker 2: as we can, and so to the team. But in 72 00:04:02,920 --> 00:04:06,000 Speaker 2: this particular case, I actually can't find any customer who's 73 00:04:06,040 --> 00:04:11,440 Speaker 2: particularly supportive of the scale of the investment. We all 74 00:04:11,560 --> 00:04:14,520 Speaker 2: want to see improvements at Auckland Airport. No one is 75 00:04:14,560 --> 00:04:16,560 Speaker 2: holding back and saying, hey, we don't need to spend 76 00:04:16,560 --> 00:04:20,520 Speaker 2: some money, but maybe instead of one hundred dollars, maybe. 77 00:04:20,279 --> 00:04:21,080 Speaker 4: It could be fifty. 78 00:04:21,400 --> 00:04:23,160 Speaker 1: Well, that domestic terminal, I think we can all agree, 79 00:04:23,240 --> 00:04:25,279 Speaker 1: is and die need of an upgrade. I came through 80 00:04:25,279 --> 00:04:28,200 Speaker 1: it on Sunday night. It is not in great shape. 81 00:04:28,240 --> 00:04:31,360 Speaker 1: It's very old. Doesn't the investment in that to make 82 00:04:31,400 --> 00:04:34,440 Speaker 1: it better? Which is a better experience for your customers ultimately, 83 00:04:34,480 --> 00:04:36,800 Speaker 1: because you have a large domestic network. Isn't that ultimately 84 00:04:36,880 --> 00:04:38,520 Speaker 1: a good thing for in New Zealand? 85 00:04:38,720 --> 00:04:39,040 Speaker 4: It is? 86 00:04:40,080 --> 00:04:45,479 Speaker 2: But you know, I'll give you two components to this, 87 00:04:45,600 --> 00:04:49,440 Speaker 2: aren't so. One is you know, I will sometimes end 88 00:04:49,520 --> 00:04:53,240 Speaker 2: up at someone's house and I might look at it 89 00:04:53,240 --> 00:04:55,800 Speaker 2: and say, you know what, this is exactly what I want, 90 00:04:55,839 --> 00:04:57,360 Speaker 2: but I might be able to afford it. 91 00:04:58,520 --> 00:05:00,920 Speaker 4: So you know, watch want. 92 00:05:01,120 --> 00:05:05,080 Speaker 2: And actually what you can afford can be two different things, 93 00:05:05,520 --> 00:05:07,400 Speaker 2: and the same. If you want to remodel your house, 94 00:05:07,440 --> 00:05:09,520 Speaker 2: you know, I'd like to stick an en suite in 95 00:05:09,560 --> 00:05:12,559 Speaker 2: every single bedroom, or I'd like, you know, to redo 96 00:05:12,640 --> 00:05:15,240 Speaker 2: the kitchen and make it twice as big. It's all 97 00:05:15,360 --> 00:05:18,960 Speaker 2: very interesting until I get the architects drawings, and then 98 00:05:19,000 --> 00:05:20,800 Speaker 2: I get it costed out and I go, you know what, 99 00:05:21,560 --> 00:05:21,960 Speaker 2: I just. 100 00:05:21,839 --> 00:05:22,720 Speaker 4: Can't afford that. 101 00:05:25,480 --> 00:05:30,000 Speaker 2: When they finish building the new domestic terminal, which we 102 00:05:30,080 --> 00:05:35,479 Speaker 2: all agree requires an upgrade, no one's disputing that from 103 00:05:35,480 --> 00:05:39,080 Speaker 2: what I can see based on the drawings, that domestic 104 00:05:39,200 --> 00:05:42,159 Speaker 2: terminal is going to have about twenty percent more retail 105 00:05:42,200 --> 00:05:45,880 Speaker 2: space than in the current international terminal. 106 00:05:46,160 --> 00:05:47,479 Speaker 1: And you think that's a bad thing. 107 00:05:47,720 --> 00:05:53,520 Speaker 2: Why we pay for ninety percent of that. And I 108 00:05:53,600 --> 00:05:57,200 Speaker 2: would say to you that when you fly domestically, you 109 00:05:57,320 --> 00:06:00,919 Speaker 2: tend to get there later to your flight than what 110 00:06:01,080 --> 00:06:04,839 Speaker 2: you do internationally. You're less inclined to go and buy 111 00:06:05,720 --> 00:06:12,080 Speaker 2: whatever it is, a bag or new shoes or cosmetics 112 00:06:12,160 --> 00:06:14,880 Speaker 2: or judy free. And you're going to end up with 113 00:06:14,960 --> 00:06:17,920 Speaker 2: twenty percent more retail space in the domestic terminal than 114 00:06:17,960 --> 00:06:20,839 Speaker 2: you currently have in the international terminal. Will pay for 115 00:06:20,960 --> 00:06:26,120 Speaker 2: ninety percent of that build, and ultimately the cost for 116 00:06:26,160 --> 00:06:29,279 Speaker 2: that sits with you, the customer. 117 00:06:29,040 --> 00:06:31,880 Speaker 1: And the revenue earned through retail goes to the airport 118 00:06:32,040 --> 00:06:32,960 Speaker 1: not doing New Zealand. 119 00:06:33,440 --> 00:06:35,919 Speaker 2: Well, the revenue earned from the retail actually goes to 120 00:06:35,920 --> 00:06:39,760 Speaker 2: what they call a second till. So that means it 121 00:06:39,839 --> 00:06:43,000 Speaker 2: doesn't go to improving the eronautical assets. 122 00:06:42,680 --> 00:06:44,280 Speaker 1: So unregulated part of their revenue. 123 00:06:44,400 --> 00:06:47,920 Speaker 2: Yeah, so that doesn't go to improving the runway or 124 00:06:47,960 --> 00:06:51,600 Speaker 2: fixing the gate or doing those sort of things. Now, 125 00:06:52,440 --> 00:06:56,680 Speaker 2: Auckland Airport are simply doing what many companies would do 126 00:06:56,920 --> 00:07:01,240 Speaker 2: if you had this regulatory environment, which was actually set 127 00:07:01,279 --> 00:07:05,960 Speaker 2: in about nineteen eighty six eighty seven. What I'm asking is, 128 00:07:06,000 --> 00:07:09,080 Speaker 2: I'm asking the Commerce Commission. I'm asking the Commerce Minister 129 00:07:09,800 --> 00:07:12,600 Speaker 2: to have a look at the regulatory environment and make 130 00:07:12,640 --> 00:07:13,560 Speaker 2: it fit for purpose. 131 00:07:13,880 --> 00:07:16,040 Speaker 1: We'll scratch the minister because you don't talk about politics 132 00:07:16,040 --> 00:07:19,000 Speaker 1: on the show, but just noting the Commerce Commission, they've 133 00:07:19,040 --> 00:07:22,120 Speaker 1: said an early indication that the plans look appropriate. So 134 00:07:22,200 --> 00:07:23,000 Speaker 1: you disagree with that. 135 00:07:23,800 --> 00:07:25,840 Speaker 2: Yeah, Look, they've had a look at a at a 136 00:07:25,880 --> 00:07:28,640 Speaker 2: five year view because that's what they were charged with 137 00:07:28,800 --> 00:07:32,440 Speaker 2: doing in this particular price setting event. When we look 138 00:07:32,480 --> 00:07:35,720 Speaker 2: at it and when we don't have access to the 139 00:07:35,760 --> 00:07:40,080 Speaker 2: full master plan that Auckland Airport are building yet we 140 00:07:40,120 --> 00:07:43,200 Speaker 2: will pay for the majority of it as well all airlines, 141 00:07:43,240 --> 00:07:45,440 Speaker 2: so we don't have access to that. You know, this 142 00:07:45,520 --> 00:07:48,720 Speaker 2: is not going to be a four to five billion 143 00:07:48,800 --> 00:07:52,680 Speaker 2: dollar spend. What you're going to find over basically the 144 00:07:52,720 --> 00:07:55,200 Speaker 2: next sort of fifteen years, this is going to be 145 00:07:55,240 --> 00:07:56,760 Speaker 2: closer to twenty billion dollars. 146 00:07:57,040 --> 00:08:00,240 Speaker 1: You think it's going to triple from this four times the. 147 00:08:00,280 --> 00:08:02,320 Speaker 2: Time you put in a second airport and by the 148 00:08:02,400 --> 00:08:05,040 Speaker 2: time you start adjusting roads and by the time you 149 00:08:05,080 --> 00:08:07,760 Speaker 2: start moving fuel tanks and or doing all those things. 150 00:08:08,920 --> 00:08:12,760 Speaker 2: This is not a small spend. And if you only 151 00:08:12,840 --> 00:08:16,360 Speaker 2: have to talk about this in five year increments, then 152 00:08:16,640 --> 00:08:20,560 Speaker 2: that's a bit of advantage if you don't have to 153 00:08:20,600 --> 00:08:23,680 Speaker 2: share out all your thinking that far out, and if 154 00:08:23,720 --> 00:08:26,800 Speaker 2: all you need to do is consult with your customer, 155 00:08:27,600 --> 00:08:31,800 Speaker 2: So no ability for us to get into a negotiation. 156 00:08:32,080 --> 00:08:34,600 Speaker 2: And if we can't come up with an agreement, some 157 00:08:34,800 --> 00:08:39,400 Speaker 2: type of arbitration process which we think would be appropriate, 158 00:08:39,520 --> 00:08:42,080 Speaker 2: or or if you want to, as you do with 159 00:08:42,160 --> 00:08:46,320 Speaker 2: electricity companies, you could set some sort of price setting event. 160 00:08:46,640 --> 00:08:50,640 Speaker 2: So there's different ways of doing this, and the countries 161 00:08:50,720 --> 00:08:54,360 Speaker 2: recognize that when they're dealing with monopolies. I just wonder 162 00:08:54,440 --> 00:08:57,440 Speaker 2: why that hasn't applied to the main airports. 163 00:08:57,800 --> 00:09:01,000 Speaker 1: Speaking of unhappy customers, touch on how you can't make 164 00:09:01,040 --> 00:09:04,200 Speaker 1: everyone happy. We know what happens in the case of 165 00:09:04,240 --> 00:09:06,760 Speaker 1: reputation being lost in an airline. Don't have to look 166 00:09:06,800 --> 00:09:08,559 Speaker 1: too far across the ditch to an airline starting with 167 00:09:08,640 --> 00:09:11,880 Speaker 1: Q to see the impact of that. I'm interested in 168 00:09:11,920 --> 00:09:17,360 Speaker 1: how in New Zealand measures loyalty and its reputation. Is 169 00:09:17,400 --> 00:09:19,800 Speaker 1: it through airpoints and the number of members or is 170 00:09:19,840 --> 00:09:22,360 Speaker 1: there another measure and if so, how does it look. 171 00:09:22,679 --> 00:09:26,120 Speaker 2: Yeah, look, we do a number of measures, and it's 172 00:09:26,160 --> 00:09:30,400 Speaker 2: not just on one thing. We take a customers, if 173 00:09:30,440 --> 00:09:34,079 Speaker 2: you like, experience from us from the moment they decide 174 00:09:34,080 --> 00:09:36,839 Speaker 2: they want to go on a trip to the moment 175 00:09:36,840 --> 00:09:39,120 Speaker 2: they've completed that and got home, and can break that 176 00:09:39,240 --> 00:09:42,440 Speaker 2: down to how did they feel about booking with us? 177 00:09:42,480 --> 00:09:45,480 Speaker 2: And how did they feel about contacting the call center 178 00:09:45,520 --> 00:09:47,400 Speaker 2: if they wanted to make a change. What was it 179 00:09:47,440 --> 00:09:49,520 Speaker 2: like when they turned up at the airport, what was 180 00:09:49,559 --> 00:09:52,040 Speaker 2: the lounge like, how was the boarding process, what was 181 00:09:52,040 --> 00:09:54,840 Speaker 2: the flight like, et cetera, et cetera. So we break 182 00:09:54,880 --> 00:09:56,480 Speaker 2: all of those down and we come up with a 183 00:09:56,480 --> 00:10:01,319 Speaker 2: customer satisfaction score, and included in that is you can 184 00:10:01,360 --> 00:10:06,000 Speaker 2: imagine it then sort of layers up into into reputation, so. 185 00:10:06,480 --> 00:10:07,679 Speaker 4: Pretty extensive measures. 186 00:10:07,679 --> 00:10:12,120 Speaker 2: Because you're right, our brand is really just so important 187 00:10:12,160 --> 00:10:14,920 Speaker 2: to everything that we do, So we obsess about it. 188 00:10:15,320 --> 00:10:17,360 Speaker 2: We obsess about it in terms of how we measure it, 189 00:10:17,400 --> 00:10:20,400 Speaker 2: We obsess about it in terms of all the softer 190 00:10:20,520 --> 00:10:22,760 Speaker 2: things that we do. You know how quickly we respond 191 00:10:22,840 --> 00:10:27,040 Speaker 2: to people, and you know, how do we deal with 192 00:10:27,080 --> 00:10:31,079 Speaker 2: particular issues when they arise. I would say to you, 193 00:10:31,240 --> 00:10:34,000 Speaker 2: it has been the number one thing on my mind 194 00:10:34,800 --> 00:10:36,520 Speaker 2: since I started, And. 195 00:10:36,480 --> 00:10:38,640 Speaker 1: Do you feel like it's gotten any better? Since you started, 196 00:10:38,720 --> 00:10:39,080 Speaker 1: or is it well? 197 00:10:39,120 --> 00:10:41,439 Speaker 2: I can tell you in terms of how we measure it. 198 00:10:41,720 --> 00:10:46,120 Speaker 2: Our customer satisfaction scores are actually up on where they 199 00:10:46,160 --> 00:10:50,080 Speaker 2: were in twenty nineteen, and our reputation. 200 00:10:49,600 --> 00:10:50,480 Speaker 4: Is about flat. 201 00:10:51,720 --> 00:10:54,120 Speaker 1: You're happy with that on its No, of course. 202 00:10:53,880 --> 00:10:55,520 Speaker 2: I want it to be better, always want it to 203 00:10:55,600 --> 00:10:58,680 Speaker 2: be better. I'd like the customer satisfaction scores even to 204 00:10:58,720 --> 00:11:03,040 Speaker 2: be better. But I also recognize that we're dealing with 205 00:11:03,400 --> 00:11:08,720 Speaker 2: some pretty difficult circumstances, some of which are beyond our control. 206 00:11:09,000 --> 00:11:12,080 Speaker 2: But I also accept that regardless of that, we still 207 00:11:12,120 --> 00:11:16,840 Speaker 2: have to deliver. So we, as I said, obsess about it. 208 00:11:17,200 --> 00:11:18,600 Speaker 1: We'll ask you one last question, and then we're going 209 00:11:18,600 --> 00:11:20,360 Speaker 1: to stand up and do some more in the component's areas. 210 00:11:20,400 --> 00:11:20,760 Speaker 4: How good? 211 00:11:22,040 --> 00:11:24,360 Speaker 1: What does it feel like to run an airline that 212 00:11:24,440 --> 00:11:26,840 Speaker 1: everyone thinks can run better than you can? 213 00:11:29,640 --> 00:11:32,480 Speaker 4: What do you mean by run better than I can? 214 00:11:32,640 --> 00:11:35,480 Speaker 1: Everyone has an idea of how they can apparently operate 215 00:11:35,520 --> 00:11:38,440 Speaker 1: this thing better than you can. The conversations around in 216 00:11:38,480 --> 00:11:41,840 Speaker 1: New Zealand are a hot topic almost all the time, 217 00:11:41,880 --> 00:11:44,360 Speaker 1: whether it's doing well or not. I feel like it's 218 00:11:44,360 --> 00:11:46,920 Speaker 1: at a fever pitch at the moment, certainly from what 219 00:11:47,000 --> 00:11:49,720 Speaker 1: I'm hearing from my audience. Do you feel the same way, 220 00:11:49,760 --> 00:11:52,800 Speaker 1: and how do you feel about receiving feedback from people 221 00:11:52,800 --> 00:11:54,000 Speaker 1: who think they can do a better job. 222 00:11:54,040 --> 00:11:54,319 Speaker 4: Yeah? 223 00:11:54,360 --> 00:11:57,240 Speaker 2: Sure, Well, first of all, I think it's been pretty 224 00:11:57,240 --> 00:12:00,840 Speaker 2: consistent in the period since I've been at the airline, 225 00:12:01,240 --> 00:12:03,280 Speaker 2: if you think about it. You know, I started literally 226 00:12:03,320 --> 00:12:06,120 Speaker 2: on the day that we stopped flying to Shanghai, So 227 00:12:06,440 --> 00:12:08,640 Speaker 2: you know, I've had to deal with that two and 228 00:12:08,640 --> 00:12:12,840 Speaker 2: a half year period of basically shutting the business down 229 00:12:12,880 --> 00:12:18,240 Speaker 2: apart from running COVID and then repatriating Kiwi that wanted 230 00:12:18,280 --> 00:12:20,679 Speaker 2: to come home. And then of course we've had that 231 00:12:20,840 --> 00:12:24,600 Speaker 2: year of restarting, which was running as hard as you 232 00:12:24,679 --> 00:12:27,719 Speaker 2: can trying to get planes out of deserts and restarted. 233 00:12:27,840 --> 00:12:30,640 Speaker 2: And you may or may not recall that we didn't 234 00:12:30,640 --> 00:12:32,679 Speaker 2: get a lot of notice as to when the country 235 00:12:32,720 --> 00:12:35,120 Speaker 2: was going to open up again, but of course we 236 00:12:35,160 --> 00:12:38,120 Speaker 2: had peented up demand. And then, of course is last 237 00:12:38,200 --> 00:12:41,480 Speaker 2: year we've been cycling into some headwinds. So I would 238 00:12:41,520 --> 00:12:44,000 Speaker 2: say to you it's been pretty consistent for the five 239 00:12:44,120 --> 00:12:48,800 Speaker 2: years that I've been here that we're dealing with an 240 00:12:48,800 --> 00:12:52,520 Speaker 2: issue of some significance and that continues. 241 00:12:54,280 --> 00:12:55,559 Speaker 4: It comes with the territory. 242 00:12:56,040 --> 00:12:58,640 Speaker 2: You know, when I get on an aircraft, which I 243 00:12:58,720 --> 00:13:02,560 Speaker 2: do pretty regularly quite often, do service and help the crew, 244 00:13:03,840 --> 00:13:06,599 Speaker 2: and it's often that, you know, people will stop me 245 00:13:06,640 --> 00:13:09,439 Speaker 2: and say, you know, you take good care of my airline, 246 00:13:09,520 --> 00:13:10,839 Speaker 2: or have you thought about this? 247 00:13:11,080 --> 00:13:13,880 Speaker 4: Or can you do that? So it goes with the territory. 248 00:13:14,280 --> 00:13:16,480 Speaker 2: Plenty of good ideas come out of it, not just 249 00:13:16,520 --> 00:13:20,280 Speaker 2: from customers but from our crew as well. I got 250 00:13:20,280 --> 00:13:22,760 Speaker 2: a good one on the flight up to Vancouver last 251 00:13:22,800 --> 00:13:26,040 Speaker 2: week which we're working on in terms of how we'll 252 00:13:26,280 --> 00:13:29,920 Speaker 2: handle and recycle trash on board. So every day you 253 00:13:30,040 --> 00:13:34,120 Speaker 2: learn something new, and you know, there are parts of 254 00:13:34,160 --> 00:13:38,160 Speaker 2: it that actually I find pretty engaging that people care 255 00:13:38,360 --> 00:13:42,079 Speaker 2: so much about this business, and so they should because 256 00:13:42,520 --> 00:13:46,000 Speaker 2: we actually hold a special place in many Kiwi's hearts, 257 00:13:46,040 --> 00:13:46,319 Speaker 2: don't we. 258 00:13:47,080 --> 00:13:49,520 Speaker 1: Greg Furan has been dealing with all the issues at 259 00:13:49,520 --> 00:13:53,720 Speaker 1: our national carrier for almost five years now. When he arrived, 260 00:13:53,760 --> 00:13:56,560 Speaker 1: he was the Walmart man who knew more about retail 261 00:13:56,800 --> 00:14:00,440 Speaker 1: than running an airline. Now he's clearly at home in 262 00:14:00,480 --> 00:14:00,960 Speaker 1: the hangar. 263 00:14:01,440 --> 00:14:05,840 Speaker 2: Do you know it's a G ninety, is it? 264 00:14:05,840 --> 00:14:07,600 Speaker 1: It was in the first weeks of the job where 265 00:14:07,600 --> 00:14:09,959 Speaker 1: he had to deal with the pandemic that caused the 266 00:14:10,040 --> 00:14:12,880 Speaker 1: airline to lose hundreds of millions of dollars and go 267 00:14:13,040 --> 00:14:16,000 Speaker 1: cap in hand to government for a nine hundred million 268 00:14:16,040 --> 00:14:19,160 Speaker 1: dollar long it's now paid it all back with interest. 269 00:14:19,960 --> 00:14:22,680 Speaker 1: Foreren wants you to know it's made progress amid all 270 00:14:22,720 --> 00:14:26,640 Speaker 1: of that, including shifting the organization to an agile management 271 00:14:26,680 --> 00:14:30,840 Speaker 1: model and spending millions on new technology upgrades. And there's 272 00:14:30,880 --> 00:14:33,120 Speaker 1: more he still wants to do. How long do you 273 00:14:33,160 --> 00:14:34,000 Speaker 1: say it itself done? 274 00:14:34,320 --> 00:14:36,080 Speaker 2: As long as the board want me to do it, 275 00:14:36,080 --> 00:14:38,920 Speaker 2: and as long as I feel I can contribute. 276 00:14:38,320 --> 00:14:39,920 Speaker 1: And you feel like you can contribute. 277 00:14:39,920 --> 00:14:42,880 Speaker 2: Still now, yeah, I think we've made an enormous amount 278 00:14:42,920 --> 00:14:45,440 Speaker 2: of progress, to be honest, with your medicine and a 279 00:14:45,440 --> 00:14:47,640 Speaker 2: lot of the things people don't see. But it's great 280 00:14:47,720 --> 00:14:50,040 Speaker 2: that you can stand here and you can go, well, gee, 281 00:14:50,080 --> 00:14:52,720 Speaker 2: that's a pretty significant investment and when you do all 282 00:14:52,760 --> 00:14:55,720 Speaker 2: of that, that's going to be good. You know, we've 283 00:14:55,920 --> 00:14:59,560 Speaker 2: done so much work in terms of digitizing the business, 284 00:14:59,640 --> 00:15:02,880 Speaker 2: getting you know, out of servers, stuff under the cloud, 285 00:15:03,480 --> 00:15:09,800 Speaker 2: replatforming apps, replatforming loyalty programs, replatforming call centers. So what 286 00:15:09,840 --> 00:15:13,080 Speaker 2: we're doing is we're taking really good long term decisions 287 00:15:13,120 --> 00:15:16,680 Speaker 2: here to set the organization up for success. And to 288 00:15:16,720 --> 00:15:18,600 Speaker 2: be honest with you, now is the time to do it. 289 00:15:18,680 --> 00:15:22,160 Speaker 2: While it's tough, is exactly the right time to do it. 290 00:15:22,320 --> 00:15:24,520 Speaker 2: And you know, we've got this way of working in 291 00:15:24,640 --> 00:15:28,960 Speaker 2: Air New Zealand agile and it's delivering us results in 292 00:15:29,000 --> 00:15:31,600 Speaker 2: a really quick and efficient manner. 293 00:15:31,760 --> 00:15:33,560 Speaker 1: Well, that's the thing with their lines. They say that 294 00:15:33,640 --> 00:15:36,560 Speaker 1: their former leadership sets it up for the next leadership. 295 00:15:36,680 --> 00:15:39,040 Speaker 1: So your job, you feel now, is team this up 296 00:15:39,080 --> 00:15:41,480 Speaker 1: for success when you are eventually not longer here. 297 00:15:41,640 --> 00:15:44,560 Speaker 2: Sure, and I think actually that's the job of any 298 00:15:44,800 --> 00:15:48,640 Speaker 2: chief executive and board is to ensure that what you're 299 00:15:48,680 --> 00:15:51,480 Speaker 2: doing is you're doing what's appropriate for today, but you're 300 00:15:51,520 --> 00:15:54,440 Speaker 2: also setting it up for success for the future. You know, 301 00:15:54,840 --> 00:15:57,640 Speaker 2: New Zealand should have an airline, its own airline, its 302 00:15:57,640 --> 00:16:01,920 Speaker 2: own flag carrier. I think for the net thirty fifty years, 303 00:16:02,200 --> 00:16:05,320 Speaker 2: however long you know, we think we're going to be flying. 304 00:16:05,680 --> 00:16:08,480 Speaker 2: I think it's an important part of New Zealand Inc. 305 00:16:08,960 --> 00:16:11,320 Speaker 2: So let's make sure that we're doing exactly that. 306 00:16:11,760 --> 00:16:15,280 Speaker 1: Thanks you, Tiger, my pleasure. Joy at in New Zealand's 307 00:16:15,280 --> 00:16:19,200 Speaker 1: board just signed a retention agreement with foreign paying him 308 00:16:19,280 --> 00:16:22,240 Speaker 1: nine hundred thousand dollars a year on top of his 309 00:16:22,320 --> 00:16:29,160 Speaker 1: salary for three years, so he stays with the airline.