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Air New Zealand names digital chief as its next CEO to navigate firm through challenges

Air New Zealand named Nikhil Ravishankar its new chief executive on Wednesday, replacing Greg Foran. The airline is currently dealing with supply chain and engine problems that will continue to impact earnings until 2025.

Foran, who was hired by the airline as the COVID-19 epidemic was looming, announced his resignation in January and will be departing the airline in October. The flag carrier is still dealing with supply chain issues and engine maintenance problems.

Ravishankar will take over the top position on October 20, after serving as Air New Zealand’s chief digital officer (CDO) for almost four years. Before joining Air New Zealand, Ravishankar held senior leadership positions at Vector, and Accenture, where Accenture was the managing director.

Therese Walsh, chair of the airline industry, said: "Airlines continue to face enormous challenges.

"Nikhil brings to the table a new perspective that is rooted in New Zealand values, and a profound knowledge of critical infrastructure and airline across various sectors."

Air New Zealand has struggled due to a small domestic market, and the fierce competition of Australian carriers Qantas Airways & Virgin Australia. Air New Zealand has also experienced delayed plane deliveries, and several jets have been grounded.

Foran, an ex-Walmart executive, led the Kiwi flag airline through a turbulent time. The airline faced unique challenges compared to other global airlines, in part due to the geographic isolation of the country.

The airline had previously warned that up to eleven of its aircraft could be grounded at certain times during the second half fiscal 2025. This would have a negative impact on the firm's profits.

The company also expects lower earnings in 2025. It cites uncertainty about global engine maintenance delays, and compensation levels.

(source: Reuters)