Outcome of PwC review into Air New Zealand Gas Turbines business

Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting business, as well as key areas where processes could be improved.

“Recommendations include more focus on upfront risk assessment, which has already been put in place, and subsequent monitoring controls.

”The report also confirmed that when entering into the third-party contract for the work for the Royal Saudi Navy, Gas Turbines employees adhered to all revenue contracting management oversight processes and controls and obtained the necessary approvals.

“We thank PwC for the information and insights it has provided.”

The PwC report follows earlier confirmation from the Ministry of Foreign Affairs and Trade that permits were not required for exporting the specific type of engines (GE LM2500) the business was repairing for the Saudi Navy.

Air New Zealand Chief Executive Officer, Greg Foran, says the airline will use the observations provided in the report to complete further updates of contracting principles and processes and improve training for employees.

“It is clear from the findings that no fault sits with Gas Turbines employees. We simply did not have robust enough processes in place to support our staff with ethical considerations.

”In February we took immediate steps to change our processes to increase executive visibility and assessment of relevant new or revised contracts, which have already been proving effective.

“Thank you to PwC and those at Air New Zealand who have supported both the internal and external reviews.”

About Star Alliance

The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognised by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Aegean Airlines, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Air Portugal, THAI, Turkish Airlines, and United. Overall, the Star Alliance network currently offers more than 19,000 daily flights to more than 1,250 airports in 195 countries. Further connecting flights are offered by Star Alliance Connecting Partner, Juneyao Airlines.

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