Air New Zealand’s new chief executive says the airline’s fortunes are inextricably linked to the nation’s economic recovery as he takes the helm during a period of significant pressure.
Nikhil Ravishankar, who officially started as CEO in October, told Q+A the carrier had a central role in kickstarting the recovery while navigating a volatile global market.
The airline signalled a financial loss of up to $55 million for the six months ending December, with as many as 11 jets grounded due to engine problems — about a fifth of its fleet.
“Air New Zealand does well when New Zealand does well,” Ravishankar said.
The new CEO, who describes himself as a “transformation expert” and “systems thinker”, said New Zealand’s economic recovery had taken longer than expected, partly due to the country’s position as a small trading nation in an increasingly uncertain world.
He pointed to China’s slow recovery and stressed trading relationships with partners, including the United States, as factors affecting New Zealand’s economic performance.
“The global market is as volatile as it’s ever been,” he said. “When you’re a small nation, a trading nation, I think it’s worth focusing on the wider system and what we can do within that system, given what’s going on in the broader world.”
NZ ‘potentially moments away’ from India trade deal
Ravishankar, who grew up in Bengaluru before immigrating, said forging new relationships with countries such as India would be critical for the country’s future.
He recently met with Trade Minister Todd McClay and Indian commerce minister Piyush Goyal during the latest round of free trade agreement discussions.
“Our pitch to them needs to be pretty clear,” Ravishankar said.
“We can help position ourselves as a laboratory for Indian businesses to test their services and products here in New Zealand before they scale it to the world.”
He said he was optimistic about recent discussions and believed New Zealand was “potentially moments away” from finalising an agreement worked on for years.
“I was really optimistic about the discussions that we had a couple of days ago,” he said.
“‘Moments’ in free trade agreement, time could be a long time, but I’m not smart enough to give you a prediction.”
On balancing commercial returns with the airline’s role as national carrier, Ravishankar said he rejected the “tyranny of the or” – the idea of choosing between profit and public service.
“Can we get great commercial outcomes while also being a part of the critical infrastructure of New Zealand?” he said.
“If we frame that problem right, we can have our cake and eat it too.”
For the full interview, watch the video above
Q+A with Jack Tame is funded through New Zealand On Air
