Toomey not going - Air NZ

By Phil Boeyen, ShareChat Business News Editor

Wednesday 3rd October 2001

Speculation of management changes at Air New Zealand (NZSE: AIRVA) - including the replacement of CEO Gary Toomey - has raised the ire of the airline's acting chairman, Jim Farmer.

Dr Farmer has issued a statement denying Australian media reports that the airline has decided to undertake a massive management shake-up involving the replacement of Mr Toomey and other executives.

"Gary Toomey was the unanimous choice of the board when he was appointed as chief executive, and he and his management team have earned our support since they started work at the beginning of this year, analysing the problems of the group and proposing and implementing solutions."

Dr Farmer says he is deeply disturbed at the damaging and untrue rumours being circulated when the board and management is working hard to ensure the airline survives.

While he admits that changes will have to be made he says there are appropriate and agreed processes for determining what those changes are and how they will be achieved.

"Gary and the executive have prepared a number of proposals for restructuring the company now that Ansett Holdings has ceased normal operations and moved into voluntary administration.

"All our energies are currently focused on negotiations to achieve the recapitalisation of Air New Zealand. After the board of directors have completed its efforts in this direction, we will consider the recommendations for restructuring."

Air NZ shares remain in a trading halt Wednesday after the airline asked last Friday that they be suspended.

Comments from our readers

No comments yet