Unhappy customers: Why Greg Foran is against Auckland Airport upgrades

[@MarketsWithMadison]

Here's Part Two of the Air New Zealand episode! When I was planning this interview, I was hellbent on filming it at the airport where Greg is most comfortable. I'm so glad we did. Would love to hear your thoughts on how you think we can keep improving the production of these episodes.

[@tradetech7889]

Tell you what Madison, regarding "censorship" examples (outside your control obviously) try looking at the difference to all the comments when signed in to YT and when not. Someone is playing politics on here. Surely there should be no difference in what is seen regardless

[@macunion1225]

another great piece of journalism , i always thought Greg came across as a bit of a moron but these extended and unbiased interviews have changed my opinion , hes got a tough job post covid for sure

[@bierstick]

Glad you’ve changed your view. Greg Foran has definitely done a great job given the cards he was dealt! He’s assembled a good team around him, which is great value for the airline as it competes in a relentlessly competitive global market.

[@peterellis1371]

Greg does clarify some of my displeasure with Air New Zealand over the last couple of years as an Infrequent flyer. Auckland Airport has become a nightmare. Transferring from domestic to international is no longer a pleasant walk. Last year we were delayed coming back from Bali and even the captain admitted 'it seems as if they don't care'. We were not allocated a gate and finally had over a kilometer walk from the pits to customs. Your bags are no longer transferred so you have to trawl bags over an ever changing route between terminals. Everywhere there is Air New Zealand ground staff scurrying like ants; but directions are not clear. There was no meal choice on the international flight - even in premium economy. A slightly bigger seat was not worth the increased cost. Okay a new domestic airport is coming; but so is the next millennium!!! The fun has gone out of flying with Air New Zealand. Another bug that is not Air New Zealand's is the need to have to endure the walk through over priced duty free shopping malls. For those of us who loathe this ruse - how about a short cut without the stares and hassle of hawkers of liquor and perfume?

[@Phil-oj5nr]

Duty free is no longer cheaper than anywhere else, and has been like that when we last flew in 2014. All airports are monopoly’s, so travellers have no choice.

[@odzergaming]

Need of walking through Duty free is Auckland Airport’s problem not Air NZ. And why would the captain care about your connection? His job is to fly the plane

[@David-yo5ws]

A CEO that listens to the Air New Zealand staff! Greg must be a rare gem. Give him a polish and keep him in the spotlight. 💎

[@LynMitchell-q8x]

I’m usually a loyal Air NZ flyer - flew recently tho with Qantas as the flights to Cairns with Air NZ were too high compared to previous years and Qantas were cheaper but when we then flew Air NZ later it felt so much better , I trust Air NZ and my preference is to stay with them - I just hope they stay competitive in their pricing .

[@NickGranville]

Oh the Irony of hearing him talk about Auckland airports monopoly and how there could be set pricing. Same needs to happen for air Nz who have a massive monopoly. Can’t help but think they’re hiking prices to gain back what revenue they lost during the pandemic. Thanks for all you do Madi.

[@brentsummers7377]

Greg Foran is correct in some of the things he says but the need for an integrated terminal is undeniable. The Auckland domestic terminal especially the regional terminal area, is like stepping back into the 1960's. Auckland airport is a mini version of LAX. No train or light rail to the terminal. The frequent electric buses to Puhinui Station are an improvement but don't count on trains being running when you get there!. Auckland airport has done a good job of updating toilets in the domestic terminal though. But I can't think of anything else positive to say.

[@NickGranville]

@@brentsummers7377 agree

[@thatdave86]

​@@brentsummers7377 Are you of age that allowed you to experience the 1960s Airport ? I remember going to the Airport just to watch the planes come and go from the viewing area on the roof ,the drive to the Airport was not like it is today ,a time when the crossing of the Mangere Bridge was a sort of event ,and to arrive at the Airport in an open environment,no shopping malls etc ,no Hussle and Bussel. And to think that we are still at 5 million people ,does the spending match ?

[@Krypto_Knight_33]

I think the mix of interviewing in a meeting room, along with some king of walkabout in their native environment is a great cocktail for successful, watchable, and relatable episodes.

[@sward5106]

Thrilled with the scale of the development and that something is finally being done within my life time. Just think of what major infra projects have been accomplished within your lifetime in NZ. A dual carriage way to Akl to Ham? Is that it? NZ needs to build some big beautiful functional new infrastructure. The airport is currently an embarrassment and a real shock to tourists and kiwis arriving back after seeing other airports around the world. Think Dublin, Oman for eg.

[@chriskeentechnician]

Great to get part two! Really interesting hearing all of the details about the engine issues and Akl Airport upgrades. It made me wonder when Chch Airport are planning to get going with the next phase of their upgrades outlined in their 2040 master plan 🤔

[@IseiNabuka]

What a man Greg is! congratulations to Air NZ and wishing all the best in years to come. Vinaka 🙂

[@bierstick]

Excellent product once again! Foran is expressing the equivalent of the frustration Aucklanders feel when they have to come in to the CBD during business/ rush hours! It would be great to hear Carrie’s view, which is likely to be more far-reaching in vision and impact. This by Greg Foran could be “strategic positioning” for some practical relief to the airline, perhaps? The clear counterpoint is: without an international class airport that functions reliably and efficiently, NZ will fall behind as a desirable destination or even a hub of innovative business.

[@MarketsWithMadison]

Episode with Carrie is in the works!

[@mierypesado6740]

Great content, keep up the great work!

[@pbondsfield]

Air NZ seems to focus more on brand (fancy seat configurations, funky safety vids etc) that affect few people, than reputational aspects, that would impact the majority of passengers. Also, he seems to think that passengers arent airport customers, only airlines are. I suspect passengers would be far more positive about the changes than airlines, and its the passengers who will ultimately pay for them. Its great to see a NZ company building for the future and ignoring the negativity that always comes when big projects are being discussed and delivered.

[@Myklification]

To reduce the impact of increasing Auckland airport landing fees and aircraft parking fees shouldn’t AirNZ increase its presence in other domestic airports? Reduce its reliance on Auckland and base A320s out of Hamilton, or even Whenuapai, base 787’s out of Christchurch. Perhaps a threat of this would give AirNZ more leverage in negotiations and serve the public better?

[@MrDraculahowsby]

If they had a monopoly on International like they do with domestic, they would But unfortunately for them they don’t have sufficient pull for this, people would just fly one of the many airlines that visit Auckland

[@lanceallen5092]

We have long been loyal Air NZ customers. With no complaints up until recently. However, the last several flights in a row have been changed a few days before and every single time they were the worst seats possible, after booking window seats months out. When we complained the rather sneering reply was, well, we are allowed to do that under our terms of passage and (with a day to two before departure) you can cancel your flights and receive a refund. Not bloody good enough Air NZ.

[@grahamcook9289]

If Greg doesn't like being exploited by Auckland airport, why doesn't he do a Ryanair and move Air NZ to Hamilton airport? Or at least threaten it to get leverage over Auckland airport. Domestic passengers can use the train to travel between Hamilton and Auckland (it could be upgraded to a high speed link). International travellers won't care as most would be either touring the North Island or transiting to the South Island. It would be a good move all round and help make the country less Auckland centric.

[@kiakaha6854]

yup jetstar have already started flying from aus to hamilton to bypass auckland

[@bierstick]

@@grahamcook9289 😂🤦🏻‍♂️

[@zorbakaput8537]

Because most of the customers are only interested in Auckland and Hamilton would have to triple in size to handle ANZ HQ and fleet being home based there. Totally impractical.

[@odzergaming]

Good luck fitting 787s and 777s at Hamilton. and the need to construct a new terminal, why bother?

[@tradetech7889]

The Air NZ shareholders annual meeting is in CHCH this Thursday people. Make your voices & votes count. This guy should just concentrate of getting engines fixed ASAP...Greg

[@drax4698]

Air NZ have zero control on getting the engines fixed. It falls squarely on the manufacturers who have been falling behind due to supply chain disruptions since COVID. No Airline can speed up the process, the engines come off when they're scheduled to and go into the cue for new parts.

[@tradetech7889]

@@drax4698 Ohh yes, in NZ we sure are great at making up excuses after extreme knee jerk reactions to a cold eh

[@PeterMoore350]

Great vid and interviews Madison. Cheers 😎🎸🤘

[@tradetech7889]

As a shareholder in AIA i contributed to this much needed upgrade. It's people like 'us' that make s*** happen. Not Government and not this guy

[@greybuckleton]

80% of the money for the upgrades is coming from passenger fees. That's the problem. AIA can build whatever they want, but they should be paying for it. If they want other people to pay for it, they need to consult with them, given they are a privately owned monopoly. That's why the commerce commission is involved. There are other problems, they are upgrading the land side terminals to be full of shops (And opened that new shopping mall last week), but are spending very little on airside upgrades to gates, airbridges, runways ect. We have an airport company abusing its monopoly to make airlines pay for the construction of shopping centres.

[@tradetech7889]

@@greybuckleton Welcome to capitalism, where the customers pay for the majority of anything businesses want to do! Hence, become a shareholder.

[@greybuckleton]

@@tradetech7889 I am a shareholder. However capitalism espouses free markets. Auckland airport is a government enforced monopoly. That's not capitalism at all.

[@tradetech7889]

@@greybuckleton Shareholder in AIA? Government itself is a enforced monopoly. People get to vote to change those things.

[@greybuckleton]

@@tradetech7889 yes I have shares in both the airport and the airline. It's not really in line with economics to consider the government a monopoly. But regardless the government holds general elections, Auckland Airport does not. They either have to behave or the government should stop blocking the competitors. At the end of the day Auckland has done a poor job of building up infrastructure and controlling costs over the last 20 years. Most companies pay for their own expansion.

[@WiredLizard]

As a monopoly all airports should have regulation and oversight that address these issues

[@ooo-vc4xl]

The issue is that AIA is a private monopoly and wants a private sector rate of return. If the airport was govt owned, even an appropriate SOE the expansion could be inter generationally funded. This is especially true given 50 year old infrastructure is being replaced.

[@luked237]

Unfortunately Greg got handed a company that had a CEO who was out of his depth, he is the right man to put it right

[@Jaysmi23]

What nobody is talking about is the price tag only replaces half of the domestic terminal. The regional prop planes will continue to use the current terminal ufn

[@stevegibb6421]

Good interview. Mr Greg F comes across as a good approachable leader who has his finger on the pulse… rather than some remote CEO surrounded by flunkies with business degrees and tied up with reams of KPI’s which actually tell very little about whats really going on. I think Air New Zealand is in good hands

[@zinny01]

Can’t get his planes in the air. Should be sacked.

[@davidfentonhancock6646]

We do not like big Airports. As much as possible we used smaller international gateways like the Gold Coast or Wellington. Auckland is an absolute shocker and for provincial travellers usually requires a night in an over-priced "Airport hotel"!

[@geoffbrittain2763]

ALWAYS ENJOY YOUR INTERVIEWS YOU ARE VERY PROFESSIONAL AND I ENJOY THE FACT YOU DO NOT SHOW OR INVOLE ANY POLITICAL BIAS OR ANY OF THIS WOKE PROPAGANDA KEEP IT UP 😄😄

[@W00IS-J]

So...how much will Air NZ pay and how much of that would be passed onto customers? If you think it will have an impact on tourism what do you think the decrease could be potentially? CEOs need to get people to work hard on these kind of numbers to make judgements and decisions.

[@TB1M1]

Like AirNZ but why oh why when I do a price check is a return flight Akl-chch 149 on Jestar and 405 with Air NZ. Too much wretched excess or beauracracy in there. Thank god Jetstar still operates.

[@dorankim9654]

A much better CEO that fit the role than the ceo of warehouse. 😅

[@thebuildreview]

The traffic entering the airport is worse after the recent changes. The airport experience itself is underwhelming compared to many. We need more airline competition to lower our airline travel costs compared with flying out of Australia. Auckland Airport will be holding the airlines and passengers to ransom.

[@maverick214]

This guy should never have been appointed CEO and there has been so much reputational damage and loss of shareholder value at Air New Zealand during his tenure. A long overdue expansion of Auckland Airport should be the least of his worries.

[@AirBlairNZ]

100% Cam Wallace would never have let Air NZ to disappear up its own tail pipe like this. Leaderless BS. The board should go.

[@anthonygrant7004]

Sounds like someone’s worried about addition of competition flying in to Auckland

[@TonyWhite-x3c]

Air NZ is a dog of an airline. The CEO is out of touch with his customer base. I fly a lot each year with Singapore or Southern China both of which offer better service and better costs. I believe that Air NZ domestic customers are paying thru their noses to prop up their loss making international routes. Who in their right mind wants to fly non-stop to Houston,then comming back cannot take your baggage because of capacity and have to stop in🎉 Fiji for refueling all because some noddy at Air NZ got it totally wrong. Agree Greg needs to go back to Walmart asap.

[@grahamcook9289]

With all Greg's money you would think he could buy a tie pin and a decent plain white shirt.

[@armanopepe1]

Thanks I didn’t notice that…I was too focused on the ‘trivial’ conversation.

[@grahamcook9289]

@@armanopepe1 Nah, it was because all Kiwis are slobs who dress like they just parked up the ute after a day on the farm, even when they are CEOs.

[@tradetech7889]

@@grahamcook9289 Clothes maketh the "man" ya reckon Graham ?

[@maverick214]

Because he use to work for Walmart who sell low quality, cheap crap. Old habits die hard.

[@Phil-oj5nr]

Can’t afford to fly Air NZ now. It is actually cheaper for me take the car across on the ferry and, say, drive to Auckland and back with a 3 litre car using 95 octane than fly with our national carrier.

[@greybuckleton]

The Airport special, during profitable years pass all profits to investors. During expensive years, pass all costs on to customers. Ahh monopolies!

[@tradetech7889]

So why are you a shareholder? Sell them! Then maybe you can live with your conscience

[@greybuckleton]

@@tradetech7889 that comment doesn't make any sense at all. Political change is not effected by making poor investment decisions and I do not share guilt in the decisions of an executive, council and government department I do not control.

[@tradetech7889]

@@greybuckleton You accuse them of being monopolies but....are a shareholder regardless. Make sense now? It's called hypocrisy

[@greybuckleton]

@@tradetech7889 it's not hypocrisy. Hypocrisy would be encouraging monopoly in one area but not another. I am unable to change the behaviour of the Auckland council or Airport company. I do not control the behaviour I am complaining about, and I don't engage in the practice myself. I also invest in the S&P500, I'm sure lots of those companies occasionally do things I wouldn't approve of, but I can't control these things, I am not dictator of the world. You have to participate in the world as it is, even when wishing for change.

[@zinny01]

Wow a monopoly moaning about a monopoly. Go figure.

[@Pid75]

As a monopoly I wonder if the airport should have actually been privatised

[@RoonyToony]

Just Nationalise Air NZ already. I’m tired of having to bail it out.

[@gp8735]

Go back to Walmart Greg. We are not up in arms mate. So called developing world far exceeds us in their primary gateway airport. Its currently 1950s.

[@Shizzle685]

Foran walked into a shite whole that's even too big for him to get out of. He should have just stayed at Walmart.

[@grahamcook9289]

Time for Air NZ to become a regional airline only covering Australia and the Pacific Islands and give up pretensions of being a long haul international airline. They could then ditch all the wide bodies and just have A321LRs for regional and A321s on domestic. Save a fortune.

[@odzergaming]

NZ is already under capacity and underserved

[@smiler2010]

Slightly ironic that Greg is complaining about the spend on Auckland Airport while receiving a 'top-up' of $900000 on his base salary... I'm a customer of Air New Zealand and nobody asked me how I felt about his salary 🤔

[@macunion1225]

i understand how you feel , but hes not a public servant and the board would likely calculate the value he brings when setting his pay

[@Aidie8]

@@macunion1225 I completely agree with this, they have seen the value and performance he has given for the last 5 years, and seen that he is doing a really good job at it, do a good job, get a good bonus.

[@smiler2010]

Which completely ignores my point. I didn't say anything about whether he deserved the money. My point was that he was complaining about customers of Auckland Airport not getting a say in how Auckland Airport runs it's affairs. Which is no different to me not getting a say in how Air New Zealand runs it's affairs. Since when did customers decide how to run the company? @@Aidie8

[@Shizzle685]

He was getting three times the money and a private jet in the usa. He probably regrets signing up to air nz 😂

[@Phil-oj5nr]

I am sure he can manage on whatever he gets. Performance bonus are a two edged sword. As the company is partly owned by the taxpayer, I think there would be plenty of people who would do a good job with a base salary, a car and a Superannuation scheme.

[@shae_sterling]

How about more than one freakin lane going into the largest airport in the country, and more staff on the security and customs. rather than rebuilding

[@HugoKaiwai]

Good operator Foran. BUT the airline has still a smugness to it. Ticket office, cabin staff all carry it. They can't go an extra inch for the customer. When I used to fly Qantas regularly, in Aus, they would give you respect before greeting at the gates - ticketing, lounge, cabin. All from a distance to guide you to their birds. A raised brow and smile....

[@nine8three310]

With the shortage of aircraft due to engine issues, you’d be ludicrous to book a flight with ANZ!

[@ashwinsingh1171]

Why is Greg complaining? He does not run Auckland Airport Company.

[@graemefraser1948]

You said Air NZ paid the covid funding back to Govt. with interest? Are you sure? I recall something about a capital raise.

[@MarketsWithMadison]

Yup, they raised $1.2b in a capital raise from shareholders in 2022 and used that to pay back the Govt.

[@tradetech7889]

Yes, but at great expense to the share price. And knowing what we know now about the covid bs they really should sue the government

[@graemefraser1948]

@@MarketsWithMadison Did the Government and other all shareholders participate in the capital raise? Capitalising debt is not quite the same as “paying it back”? Do we know how much net cash the government actually received back? Also…weren’t the bailout loan(s) more than $1.2B? Factual information please.

[@tradetech7889]

@@graemefraser1948 Ask Jacinda, she's apparently the Truth guru of all things!

[@MarketsWithMadison]

@@graemefraser1948 The Govt did participate fully in the raise, they didn't want their 51% holding to be diluted. They received all the loan money back directly, Air NZ didn't drawdown the full $900m but can't remember exact figure, with interest (rate was around 9% annually which was roughly 4x the OCR at the time from memory). But yes there would have been some washing of the funds with the loan repayment and then the Govt helping to recapitalise it anyway. Loan amount was $900m, I remember asking Greg how much he wanted and he said that's all they asked Treasury for. Hope that helps.

[@Albertouy]

They made huge profits by putting prices up in post covid and now they are complaining of Auckland airport increasing their cost which will eat into air nz margin. Serves them right. This is nothing but greed disguised in a best for customer interview

[@chrismiranda1798]

Just sounds like air nz is in trouble

[@joka5684]

Again. After several taxpayer bailouts.

[@tradetech7889]

Aslong as the NZ Government remain a liability shareholder Air NZ will never get out of penny stock status

[@timkeane3800]

Very true, but I have to say as a long time investor 10+ years now I've found even with the low rate of growth if buys are well timed she's a tidy dividend payer. always a silver lining to a bad story.

[@tradetech7889]

@@timkeane3800 1.5cents aint great

[@AirBlairNZ]

This from a guy who been asleep at the wheel for 6 years. Cam Wallace would never have let Air NZ deteriorate like this. Foran hasn't brought anyone along for the ride. Reputation isn't flat mate - its in the gutter. Hes SHOCKED to hear that people are talking about how bad the business is run. Clueless

[@weeklytrader-v8v]

He will stay with the Airline, I go, as a shareholder.

[@mahanar3d]

Insightful. A comparison with how Qantas is run might be useful considering their share price is near all-time highs. Albeit it must be acknowledged Qantas managed to get a cap raise much earlier and at better pricing than AirNZ due to our govt's inept handling of covid

[@MarketsWithMadison]

This is in the works!

[@mausplan3890]

Foran gives the impression he could not give a flying bleep about anything.

[@64mustangfan]

Interesting, still no observation deck though

[@brentsummers7377]

Exactly! Airport management around the World used the events of 911 as an excuse to close observation decks and to use the space for high end retailers. There are exceptions though. SFO airport has an outdoor Sky Terrace which anyone can visit provided they go through a security check at the entrance. This deck is open from Friday to Sunday each week. And SFO has another outdoor terrace area in the international terminal that is open to international passengers once they have gone through security. The Sky Terrace is fabulous and gives a great view of domestic gates & planes departing on the 28L and 28R runways. The prevailing winds in San Francisco airport seem to be a Westerly or Northerly so people on the Sky Terrace are almost guaranteed a view of planes taking off.

[@tigertiger1699]

Why don’t you talk about the minister/ politics… on the show?

[@MarketsWithMadison]

I believe that once you start talking about politics and allowing political views/opinions on here, there's no going back. This is a business show for investors and I really want it to stay that way. There's enough political noise out there so I don't feel the need to add to it in these interviews. Thanks for asking!

[@tradetech7889]

@@MarketsWithMadison Good call, leave the political to us commentators ;-)

[@tradetech7889]

Just watching the annual meeting online today and the noticeable infestation of sickening 'wokedom' is exactly why this airline is going backwards! Just appalling

[@PeteChatteris]

Greg Foran does not understand the market

[@e1ectroniKa]

Upgrading technology should mean, internet on flights. Other carriers do it in and out of NZ, why not Air NZ.

[@kieranmacdonald83]

Air NZ do. And it’s free unlike every other airline. Unfortunately not every single plane is equipped yet and that will be done when the appropriate maintenance cycle comes up:

[@morrisanderson818]

Monopoly,wow,we remember,when a one man ban took Air NZ on,and had flight's from Palmerston North,to Aussie,and were doing awesome, plane's were always packed with traveler's,,then the $#@?s at Air NZ dropped the price's to where the little guy was going to,and he couldn't compete,guess what happened,after he folded, don't need to be a brain surgeon,

[@daviddodds935]

He should start running an airline & not a culture show !

[@Drmicky141]

Greg can't even get the HDQ move to the airport done, very disappointing. Time to go perhaps, the longest serving CEO since Jim McRea I believe.

[@oldtvseries3535]

its not his decision, thank goodness. his job is to do more damage to air nz.

[@surfrescue3232]

She's painful.

[@MarketsWithMadison]

Cheers

[@tradetech7889]

@@MarketsWithMadison LOL 👍classic comeback

[@surfrescue3232]

@@MarketsWithMadison Well don't male smart alec comments like 'the airline across the ditch the starts with Q'. That's for ten year olds luvvy.

[@Gary-i9f]

Auckland airport doing a great job ,and as for air nz they carnt get nz145 and nz146 out and back from Brisbane on time .....check last 3 years history..pathetic.

[@gerryfrancis3350]

There's something about Madison I find unsettling. Maybe too ... smug?

[@tradetech7889]

Or...just happy in her work? gezz go easy, how about "confident"?

[@macunion1225]

trust me its you not her

[@grahamcook9289]

Maddy, why are all NZ's old geyser business leaders such terrible dressers, especially with all their money?

[@mierypesado6740]

Unnecessary and toxic comment that adds nothing to the topic at hand.

[@grahamcook9289]

@@mierypesado6740 When you are CEO and business leader presentation is everything. A tidy appearance indicates a tidy mind.

[@tradetech7889]

@@mierypesado6740 Toxic?? really......🙄

[@tradetech7889]

@@grahamcook9289 Didn't seem to hurt Apple or Microsoft, just saying

[@grahamcook9289]

@@tradetech7889 Well, Bill Gates didn't have any style with the smudgy glasses and he was a sex pest. But Apple execs always look smart casual. Either go smart casual or if you are going to wear a suit match with a plain crisp white shirt and tie with tie pin. How difficult can that be?