Air New Zealand Confirms Executive Team

Air New Zealand has consolidated its group structure and executive management team following the loss of its Australian subsidiary, Ansett Holdings.

The company has reduced the number of its functional units and senior vice presidents from 12 to six, and the continuing members of the executive have agreed to remuneration reductions averaging 15% percent.

Commenting on the appointments, the Executive Director of Air New Zealand, Mr Roger France, said it was inevitable that there would be fewer positions in the new structure compared to the combined Air New Zealand - Ansett group.

"We faced a very difficult task making final selections between highly capable and respected executives who guided our business through the integration with Ansett," he said.

Strategy & Planning

Mr Andrew Miller has been appointed Senior Vice President - Strategy & Planning. Mr Miller was the Air New Zealand-Ansett group's Senior Vice President - Sales & Marketing. His new responsibilities include fleet planning, fleet strategy, network strategy, revenue management, marketing, alliances, government affairs, and Freedom Air.

Mr Wayne Dodge continues as Vice President - Freedom Air.

Sales & Distribution

Mr Norm Thompson has been appointed Senior Vice President - Sales & Distribution. Mr Thompson was the Air New Zealand-Ansett group's Vice President - Australian Sales and Distribution His new responsibilities include New Zealand and international sales, call centres, cargo, and New Zealand regional airline operations.

Mr Paul Donovan, formerly Vice President - New Zealand and Southwest Pacific Sales and Distribution, has been appointed Vice President - Australia Sales and Distribution. Mr Peter Elmsly continues as Vice President - Cargo.

Customer Services

Mr Brendan Fitzgerald has been appointed Senior Vice President - Customer Services.

Mr Fitzgerald was the Air New Zealand-Ansett group's senior vice president - worldwide airport services. His new responsibilities include cabin crew, New Zealand and international airport services, airport support, and customer service standards & support.

Operations & Technical

Mr Bill Jacobson has been appointed Senior Vice President - Operations & Technical. Mr Jacobson was the Air New Zealand-Ansett group's engineering unit ANNZES. His new responsibilities include operations, pilot and ANZES functions.

Human Resources & Organisation Change

Ms Carolyn Tremain has been appointed Senior Vice President - Human Resources and Organisation Change. She held the same position in the Air New Zealand-Ansett group.

Finance

Mr Adam Moroney has agreed to continue as Chief Financial Officer until Christmas. His responsibilities include all finance functions, business performance enhancement, procurement, property, information technology, and NZ Ski.

Ms Karen Waddell will continue in her role as Vice President Group Finance until Christmas. Mr Andrew David will also continue in his role as Chief Information Officer.

Office of the Chief Executive

The company is continuing its search for a new Chief Executive Officer. Mr Roger France will continue to carry out the Chief Executive's responsibilities until an appointment is made.

Mr John Blair continues to exercise his responsibilities as Company Secretary and General Counsel. Mr David Beatson will also continue as Vice President - Group Public Affairs. Both will operate in the Office of the Chief Executive.

Departures

Mr France paid tribute to a number of executives who are leaving Air New Zealand at this time.

"This is sad but inevitable as we have fewer positions in our new structure - and not all of our existing executive team are able to relocate to Auckland," he said. "It is with regret that I confirm the following people will shortly be leaving Air New Zealand."

George Frazis, Senior Vice President, Strategy, Networks & Marketing: George joined Air New Zealand in January 2001. George's experience in the aviation industry commenced during his employment with the Royal Australian Airforce where he served from 1986 to 1990. George has chosen to leave Air New Zealand to pursue other opportunities in Australia.

Lesley Grant, Senior Vice President, Customer Services: Lesley has performed a wide range of operational and customer service roles across the group over many years and has most recently led the Customer Service Division from Melbourne. For family reasons Lesley will not be relocating to NZ and will remain in Australia.

Peter Harris, Vice President, Government/International Affairs: Peter joined Air New Zealand on 29 January 2001 from the Australian Department of Transport in Canberra where he held the position of Deputy Secretary. Whilst in the role of Vice President - Government & International Affairs, Peter made significant progress in re-building relationships between Air New Zealand, our infrastructure providers and airport authorities. At Easter he negotiated the restart of the grounded Ansett 767s with Australia's CASA and otherwise contributed to the ownership negotiations with Governments on both sides of the Tasman.

Trevor Jensen, Senior Vice President, Operations: Trevor joined Ansett in 1996 as Executive General Manager Operations and Inflight Services. Trevor has spent the past eighteen months tackling one of the most challenging tasks ever to confront an airline's operational administration and with notable success. Trevor's intentions going forward are to focus on re-establishing Ansett as an independent airline and to maintain close links with Air New Zealand to ensure a formidable Australasian presence.

Andrew Pondekas, Senior Vice President, Ventures: Andrew has a Bachelor of Business and initially commenced his career in the health services sector. In 1985 he moved to Brambles Industries limited where he held senior management roles in Australia and in Europe. In 1996 Andrew was appointed Group General Manager of Qantas Flight Catering Limited, a wholly owned subsidiary of Qantas. Andrew was appointed to Air New Zealand in June 2001.

Kevin Turnbull, Senior Vice President, Business Performance Enhancement: Kevin Turnbull re-joined Air New Zealand in January 2001, after working in Australia for six years, Kevin worked with Qantas from 1994 to 2000, during which time he held the positions of General Manager Accounting and Performance and Group General Manager Operation Services. Kevin's first term with Air New Zealand was spent as Chief Internal Auditor between 1992 and 1994.

"I would like to record the Board's appreciation of the efforts of these executives during the challenging task of integrating Air New Zealand and Ansett. We wish each and every one of them every success with their future plans and careers," said Mr France.