Air New Zealand names Greg Foran as new CEO

Air New Zealand has appointed top supermarket executive Greg Foran as its next chief executive officer.

Newly-named Air New Zealand CEO Greg Foran is a former top executive at Woolworths.

Air New Zealand’s has appointed former Woolworths executive and currently top Walmart executive Greg Foran as the airline’s next chief executive officer.

Mr Foran, a career retailer, currently heads up Walmart’s US business, overseeing the company’s 4600 stores and more than 1 million staff.

He joined Walmart in 2011 and has since been a key executive at the US retailer, which ranks as one of the world’s biggest companies by revenue. Before joining Walmart, Mr Foran held a number of top executive positions with Woolworths in Australia.

Air New Zealand chairman Dame Therese Walsh says Mr Foran, who grew up in New Zealand, would be an “outstanding leader” of the airline.

“We are thrilled to have attracted a world class Kiwi back home. Greg has an impeccable track record in delivering strong commercial performance, outstanding customer focus and in building teams that can take a business to the next level,” Dame Therese said.

Mr Foran said on Friday he was privileged to have been given the opportunity to grow an iconic and critical New Zealand company and brand on the global stage.

“I am an incredibly proud Kiwi and to be given the job of nurturing and building on the legacy of an iconic company that represents the best of our nation at home and around the world really excites me,” he said.

“Air New Zealand is deservedly recognised as one of the world’s great airlines and I look forward to working alongside its people to take it to the next level,” said Mr Foran, who is also the father of former NRL star Kieran Foran

Mr Foran replaces outgoing CEO Christopher Luxon, who recently retired following seven years in the role.

Air New Zealand last year carried more than 17.7 million passengers, although earnings had come under pressure amid intense competition.

Mr Foran will take up the position of chief executive officer in the first quarter of 2020.

Mr Foran took over Walmart’s biggest division in 2014 and led a turnaround in the US by pulling back on new-store openings and investing to improve existing stores. He clashed with the head of Walmart’s US e-commerce operations, Marc Lore, over spending and strategy, according to people familiar with the matter.

Neither Messrs Foran nor Lore immediately returned requests for comment. Mr Foran is known as a demanding, detail-oriented boss who worked long hours and often took other executives with him on a company plane on Saturdays to visit stores. He has focused on reducing the inventory in stores and more consistently stocking shelves to boost sales, improving customer service, as well as cutting spending on store labour to invest in such new projects as online grocery delivery.

In 2018 at a keynote speech in New York, Walmart president and chief executive Doug McMillon singled out Mr Foran, for doing a “masterful” job running Walmart’s US operations.

The speech helped mark Mr Foran as potential candidate for Walmart’s top job. Earlier in his career he was also viewed as a contender for the CEO position at Woolworths, but resigned from the company when he was passed over for Grant O’Brien in 2011.

Mr McMillon praised Mr Foran for his work in weaving together the bricks-and-mortar stores and Walmart’s online offering, especially after the company in 2017 paid $US3.3bn to acquire online retail business Jet.com. “He is a real talent,’’ Mr McMillon said.

Meanwhile, the outgoing Mr Luxon has confirmed a much -anticipated shift into New Zealand politics, adding weight to the opposition’s bid to tilt Jacinda Ardern from power.

Mr Luxon announced he would nominate to be National’s candidate in the seat of Botany for next year’s election.

Former National prime minister Sir John Key, who serves on the Air New Zealand board, has called Mr Luxon a “world class candidate” - an indication the party would swing behind his colleague for selection.

with Dow Jones Newswires, AAP