News: Toomey steps down
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News: Toomey steps down
Gary Toomey steps down
09.10.2001 5.24 pm
Gary Toomey has stepped down as Air New Zealand chief executive.
The decision to leave was agreed between the board and Mr Toomey, Air NZ acting chairman Dr Jim Farmer said in a statement this afternoon.
Dr Farmer said Mr Toomey agreed the circumstances the company found itself in now, were quite different to those that attracted Mr Toomey to the join the company at the beginning of the year.
"He has encountered a set of problems that were not of his making and has worked relentlessly to find answers to them.
"We have no criticism to make of him — or the management team he led — for what has happened and wish him well wherever he goes now."
Dr Farmer said Mr Toomey had personally borne the brunt of Australian anger arising out of the Ansett closure and he deserves every sympathy and consideration for that fact.
09.10.2001 5.24 pm
Gary Toomey has stepped down as Air New Zealand chief executive.
The decision to leave was agreed between the board and Mr Toomey, Air NZ acting chairman Dr Jim Farmer said in a statement this afternoon.
Dr Farmer said Mr Toomey agreed the circumstances the company found itself in now, were quite different to those that attracted Mr Toomey to the join the company at the beginning of the year.
"He has encountered a set of problems that were not of his making and has worked relentlessly to find answers to them.
"We have no criticism to make of him — or the management team he led — for what has happened and wish him well wherever he goes now."
Dr Farmer said Mr Toomey had personally borne the brunt of Australian anger arising out of the Ansett closure and he deserves every sympathy and consideration for that fact.
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And from his letter to staff..
I believe that the Board's decision to place Ansett in voluntary administration means that the future Air New Zealand must set its sights on different goals from the ones that drew me to the Company. I think it is appropriate for me to move aside, take a break with my family, and consider some of the options open to me.
I deeply appreciate the literally hundreds of cards and messages I have received from staff and supporters during the difficult times that the Group has gone through over the year. I also wish to thank the management team for their work in responding to the problems the company has experienced. On behalf of myself, my wife Denise and our daughter Brooke, I wish the company every success in its new form.
I believe that the Board's decision to place Ansett in voluntary administration means that the future Air New Zealand must set its sights on different goals from the ones that drew me to the Company. I think it is appropriate for me to move aside, take a break with my family, and consider some of the options open to me.
I deeply appreciate the literally hundreds of cards and messages I have received from staff and supporters during the difficult times that the Group has gone through over the year. I also wish to thank the management team for their work in responding to the problems the company has experienced. On behalf of myself, my wife Denise and our daughter Brooke, I wish the company every success in its new form.
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No, Dr. Farmer, Gary Toomey does NOT deserve any sympathy for his having to bear the brunt of the Australian criticism, he accepted the post and, therefore, all the problems it inherited.
What he DOES deserve sympathy for is the fact he was hung out to dry by the board which appointed him, in which I include yourself, since you and your self-serving cronies hid behind Toomey and made him the fall-guy for your two-faced actions.
Please, for the sake of ALL of us at AN Mk2, LEAVE ANSETT AND AUSTRALIAN AVIATION ALONE, we can no longer afford the interference and machinations of your devious management methods. Stay on your own side of the ditch and out of our backyard. With all our attendant faults in Oz, we are a damned sight better off dealing with people we can trust and work with face-to-face.
Kind regards,
TheNightOwl.
Kind regards,
What he DOES deserve sympathy for is the fact he was hung out to dry by the board which appointed him, in which I include yourself, since you and your self-serving cronies hid behind Toomey and made him the fall-guy for your two-faced actions.
Please, for the sake of ALL of us at AN Mk2, LEAVE ANSETT AND AUSTRALIAN AVIATION ALONE, we can no longer afford the interference and machinations of your devious management methods. Stay on your own side of the ditch and out of our backyard. With all our attendant faults in Oz, we are a damned sight better off dealing with people we can trust and work with face-to-face.
Kind regards,
TheNightOwl.
Kind regards,
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*Toomey departs Air New Zealand*
The man who has largely borne the brunt of Australian anger over the
collapse of Ansett, Gary Toomey, has resigned as chief executive of Air
New Zealand.
His departure was announced in a joint statement by Mr Toomey and the
acting chairman of Air New Zealand, Jim Farmer.
The statement says Mr Toomey's decision to leave the position he has
held for less than 12 months, was by mutual agreement with the Air New
Zealand board.
Only yesterday, Mr Toomey said he was quitting his position on the ANZ
Bank board to focus on the airline.
Mr Farmer says it is a sad moment but the circumstances in which Air New
Zealand now finds itself are quite different to those which attracted Mr
Toomey.
Mr Toomey says he appreciates the support he has received during the
difficult times the group has gone through.
However, he says he thinks it is appropriate for him to move aside and
take a break with his family.
He will be temporarily replaced by new director Roger France.
The man who has largely borne the brunt of Australian anger over the
collapse of Ansett, Gary Toomey, has resigned as chief executive of Air
New Zealand.
His departure was announced in a joint statement by Mr Toomey and the
acting chairman of Air New Zealand, Jim Farmer.
The statement says Mr Toomey's decision to leave the position he has
held for less than 12 months, was by mutual agreement with the Air New
Zealand board.
Only yesterday, Mr Toomey said he was quitting his position on the ANZ
Bank board to focus on the airline.
Mr Farmer says it is a sad moment but the circumstances in which Air New
Zealand now finds itself are quite different to those which attracted Mr
Toomey.
Mr Toomey says he appreciates the support he has received during the
difficult times the group has gone through.
However, he says he thinks it is appropriate for him to move aside and
take a break with his family.
He will be temporarily replaced by new director Roger France.
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TheNightOwl.
I think we've seen it before. Have a read of the Mount Erebus disaster they were involved in a long time ago.
The Captain had all the qualifications of a good scapegoat. He was dead. At least Gazza lives on this time.
I think we've seen it before. Have a read of the Mount Erebus disaster they were involved in a long time ago.
The Captain had all the qualifications of a good scapegoat. He was dead. At least Gazza lives on this time.
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TheNightOwl -- you must be an aussie, why don't you whinging blighters stay on your side of the Tasman. Take your QF aircraft and the others you are using ova here .. Air Pacific, Polynesian and Air Canada Take them back to where ever and let some decent Kiwis do the job in their own country. People in glass houses eh!!!!!!! You don't tolerate this in your own country and we have just about had a gutsful of the high and mighty Australians.
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*Air NZ awaits crucial court decision, Ansett workers seek entitlements*
The Federal Court has been told Air New Zealand faces imminent collapse
if the court rejects the airline's $200 million severance bid.
In affidavits presented to the court, Air New Zealand's acting chairman
James Farmer says the deal is an essential part of the funding package
for the airline, put together in many fraught days of negotiations to
save New Zealand's national carrier.
Under the deal with Ansett's administrators, Air New Zealand will have
no further obligations to Ansett or the airline's staff.
Mr Farmer says Air New Zealand has been on the brink of collapse since
Ansett was placed in voluntary administration.
Australian unions are worried staff will lose entitlements if the deal
is ratified.
The case before Justice Allan Goldburg resumes tomorrow.
A group of Ansett employees wants the right to sever their employment
with the airline and take their entitlements now.
Lawyer for Ansett Employees Entitlements Group, Christopher Nyst, says
less than half of Ansett's 16,000 employees are likely to find work with
the resurrected airline and employees should be given the option of
taking their entitlements.
"At the moment that choice doesn't exist, they are simply in limbo they
are all out there simply dangling on a string, permanently on call,
indefinitely on call and told by an employer, who can't pay them, 'I
want you just to wait in case I decide to call you up and bring you in
for some hours work'," Mr Nyst said.
"They need to be able to get on with their lives they need to be able to
plan for their futures."
Mr Nyst says the Prime Minister has publicly guaranteed their
entitlements, but continues to hold back the money.
"The Prime Minister has been very generous in saying that entitlements
will be met and we are saying, 'Prime Minister would you please step in
now to ensure these people get their entitlements now'.
"If he ignores us, we may have to look at our options and they may
include litigation."
The Federal Court has been told Air New Zealand faces imminent collapse
if the court rejects the airline's $200 million severance bid.
In affidavits presented to the court, Air New Zealand's acting chairman
James Farmer says the deal is an essential part of the funding package
for the airline, put together in many fraught days of negotiations to
save New Zealand's national carrier.
Under the deal with Ansett's administrators, Air New Zealand will have
no further obligations to Ansett or the airline's staff.
Mr Farmer says Air New Zealand has been on the brink of collapse since
Ansett was placed in voluntary administration.
Australian unions are worried staff will lose entitlements if the deal
is ratified.
The case before Justice Allan Goldburg resumes tomorrow.
A group of Ansett employees wants the right to sever their employment
with the airline and take their entitlements now.
Lawyer for Ansett Employees Entitlements Group, Christopher Nyst, says
less than half of Ansett's 16,000 employees are likely to find work with
the resurrected airline and employees should be given the option of
taking their entitlements.
"At the moment that choice doesn't exist, they are simply in limbo they
are all out there simply dangling on a string, permanently on call,
indefinitely on call and told by an employer, who can't pay them, 'I
want you just to wait in case I decide to call you up and bring you in
for some hours work'," Mr Nyst said.
"They need to be able to get on with their lives they need to be able to
plan for their futures."
Mr Nyst says the Prime Minister has publicly guaranteed their
entitlements, but continues to hold back the money.
"The Prime Minister has been very generous in saying that entitlements
will be met and we are saying, 'Prime Minister would you please step in
now to ensure these people get their entitlements now'.
"If he ignores us, we may have to look at our options and they may
include litigation."
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TOP STORY
WEDNESDAY, 10 OCTOBER 2001
T O P S T O R Y
Payout speculation 'ridiculous' - Toomey
10 October 2001
Former Air New Zealand chief executive Gary Toomey today dismissed reports he received a multi-million dollar golden handshake for quitting the ailing carrier.
"All this speculation about large sums of money is ridiculous," Mr Toomey said.
Mr Toomey said his redundancy provisions were the same as those of any member of the Air NZ staff.
His comments follow media reports this morning he was in line for a severance package worth between $1.8 million and $4 million.
The Press Newspaper in Christchurch said Mr Toomey negotiated a redundancy package two weeks ago that would see him receive at least one year's salary - worth $1.8 million - and possibly more.
The Dominion valued Mr Toomey's payment at up to $4 million.
Mr Toomey said his redundancy settlement was a private matter between him and his employers.
"I have agreed with the (Air NZ) board to keep that confidential," he told National Radio.
"It is certainly not multiples of salary or anything like that."
After a turbulent nine months in the job, Mr Toomey resigned yesterday rather than implement the restructuring plan which he had prepared for Monday's board meeting.
Under the Toomey plan, at least 800 airline jobs will go as management layers are stripped out and routes cut.
Analysts are tipping more cuts if the global aviation slump worsens.
Speculation that Mr Toomey would quit intensified last Thursday when his seat was empty at the press conference to announce the Government's $885 million bailout.
His departure leaves Government-appointed Air NZ director Roger France - a former chartered accountant with no airline management experience - at the helm of the ailing carrier.
Mr Toomey added that he had given up a very well paid job in Australia (as number two at Qantas) to take on the Air NZ position and deserved some recognition for the fact that he would find it difficult to gain such a high profile role again.
Acting Air NZ chairman Jim Farmer said yesterday Mr Toomey's departure was a "sad moment, but we agree the circumstances in which the company finds itself are quite different to the Australasian airline group that attracted Mr Toomey to join us".
Mr Toomey was head-hunted earlier this year to merge the airline's New Zealand operations with its Australian subsidiary, Ansett.
That plan fell over when Ansett was placed in voluntary administration last month, leading Air NZ to a $1.5 billion writedown of the airline's assets and a record annual loss.
Mr Toomey was seen as being too closely tied to the poor performance of Air NZ and its failed Australian subsidiary, through his personality-driven television and newspaper commercials to survive the fallout.
Mr Toomey said today he had no immediate plans for his future.
Aviation consultant, David Stone, said today Mr France was likely to lead the company through its transitional period as it moves to Government ownership.
A replacement for Mr Toomey could come from within the company, with Air NZ executive Andrew Millar – currently seconded to the Ansett administrator to work on the business plan for Ansett Mark II – tipped as a possible taker for the top job, he said.
The position may also attract international interest, with airlines globally shedding executive staff in the wake of last month's terrorist attacks.
"Given the cutbacks in senior airline executives around the world just now even the slimmer Air NZ faces issues that, in a safer part of the world, is quick proven an attractive and challenging post," Mr Stone told National Radio.
Meanwhile, Mr Toomey today mooted Qantas as a logical cornerstone shareholder in Air NZ.
"As I publically said months ago, without Ansett, the airline will be vulnerable unless it can have a very strong alliance. Personally, my view is that Qantas would be the logical partner to tie up to," he said.
Qantas has twice before owned shares in Air NZ, most recently a 19.9 percent stake in the 1990s.
Air NZ's locally-traded A shares were steady at 30c by mid morning today, while its unrestricted B shares were down a cent at 29c
WEDNESDAY, 10 OCTOBER 2001
T O P S T O R Y
Payout speculation 'ridiculous' - Toomey
10 October 2001
Former Air New Zealand chief executive Gary Toomey today dismissed reports he received a multi-million dollar golden handshake for quitting the ailing carrier.
"All this speculation about large sums of money is ridiculous," Mr Toomey said.
Mr Toomey said his redundancy provisions were the same as those of any member of the Air NZ staff.
His comments follow media reports this morning he was in line for a severance package worth between $1.8 million and $4 million.
The Press Newspaper in Christchurch said Mr Toomey negotiated a redundancy package two weeks ago that would see him receive at least one year's salary - worth $1.8 million - and possibly more.
The Dominion valued Mr Toomey's payment at up to $4 million.
Mr Toomey said his redundancy settlement was a private matter between him and his employers.
"I have agreed with the (Air NZ) board to keep that confidential," he told National Radio.
"It is certainly not multiples of salary or anything like that."
After a turbulent nine months in the job, Mr Toomey resigned yesterday rather than implement the restructuring plan which he had prepared for Monday's board meeting.
Under the Toomey plan, at least 800 airline jobs will go as management layers are stripped out and routes cut.
Analysts are tipping more cuts if the global aviation slump worsens.
Speculation that Mr Toomey would quit intensified last Thursday when his seat was empty at the press conference to announce the Government's $885 million bailout.
His departure leaves Government-appointed Air NZ director Roger France - a former chartered accountant with no airline management experience - at the helm of the ailing carrier.
Mr Toomey added that he had given up a very well paid job in Australia (as number two at Qantas) to take on the Air NZ position and deserved some recognition for the fact that he would find it difficult to gain such a high profile role again.
Acting Air NZ chairman Jim Farmer said yesterday Mr Toomey's departure was a "sad moment, but we agree the circumstances in which the company finds itself are quite different to the Australasian airline group that attracted Mr Toomey to join us".
Mr Toomey was head-hunted earlier this year to merge the airline's New Zealand operations with its Australian subsidiary, Ansett.
That plan fell over when Ansett was placed in voluntary administration last month, leading Air NZ to a $1.5 billion writedown of the airline's assets and a record annual loss.
Mr Toomey was seen as being too closely tied to the poor performance of Air NZ and its failed Australian subsidiary, through his personality-driven television and newspaper commercials to survive the fallout.
Mr Toomey said today he had no immediate plans for his future.
Aviation consultant, David Stone, said today Mr France was likely to lead the company through its transitional period as it moves to Government ownership.
A replacement for Mr Toomey could come from within the company, with Air NZ executive Andrew Millar – currently seconded to the Ansett administrator to work on the business plan for Ansett Mark II – tipped as a possible taker for the top job, he said.
The position may also attract international interest, with airlines globally shedding executive staff in the wake of last month's terrorist attacks.
"Given the cutbacks in senior airline executives around the world just now even the slimmer Air NZ faces issues that, in a safer part of the world, is quick proven an attractive and challenging post," Mr Stone told National Radio.
Meanwhile, Mr Toomey today mooted Qantas as a logical cornerstone shareholder in Air NZ.
"As I publically said months ago, without Ansett, the airline will be vulnerable unless it can have a very strong alliance. Personally, my view is that Qantas would be the logical partner to tie up to," he said.
Qantas has twice before owned shares in Air NZ, most recently a 19.9 percent stake in the 1990s.
Air NZ's locally-traded A shares were steady at 30c by mid morning today, while its unrestricted B shares were down a cent at 29c
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We should also ask any surgeons/doctors who treat critically ill patients who consequently die, to also resign. It is apparent to me that Toomey took over a business that was plunging toward the ground and did his best to turn it around.
If any one is accountable it is the sheep-rooting kiwi government, their bumbling, paranoid leader and the finance minister who stymied any of the attempts by Toomey to replan/refinance the whole operation.
Maybe Toomey could have been a little less gentlemanly and more assertive in in his representations to all sides. But the rot had set in long before he took the reins.
If any one is accountable it is the sheep-rooting kiwi government, their bumbling, paranoid leader and the finance minister who stymied any of the attempts by Toomey to replan/refinance the whole operation.
Maybe Toomey could have been a little less gentlemanly and more assertive in in his representations to all sides. But the rot had set in long before he took the reins.
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phuqmeded
You completely contradict yourself. First of all you say that if anyone is accountable it is the NZ government but then you go on to say that "the rot had set in long before he took the reins".
Now correct me if I am wrong but are you saying that the NZ government is this so-called rot? If so, please explain.
As far as I am aware there are many factors that contributed to the INITIAL problems with AN. But none of these factors include the NZ government. While I agree that the Air NZ board have to take a large chunk of responsibility for all of this I think you should also have a serious look at the original AN management and your own Government Don’t get me wrong. The NZ government fluffed around for too long at the end but can you really attribute AN’s demise to that one factor. There is a lot of history that needs to be researched before jumping to that conclusion.
And remember people. Toomey knew what he was getting himself into. They don't pay him the big bucks to be a figurehead and yes man. He has to take some responsibility even if he is an Australian.
You completely contradict yourself. First of all you say that if anyone is accountable it is the NZ government but then you go on to say that "the rot had set in long before he took the reins".
Now correct me if I am wrong but are you saying that the NZ government is this so-called rot? If so, please explain.
As far as I am aware there are many factors that contributed to the INITIAL problems with AN. But none of these factors include the NZ government. While I agree that the Air NZ board have to take a large chunk of responsibility for all of this I think you should also have a serious look at the original AN management and your own Government Don’t get me wrong. The NZ government fluffed around for too long at the end but can you really attribute AN’s demise to that one factor. There is a lot of history that needs to be researched before jumping to that conclusion.
And remember people. Toomey knew what he was getting himself into. They don't pay him the big bucks to be a figurehead and yes man. He has to take some responsibility even if he is an Australian.
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Just been watching an interview with Gary Toomey on TV. He was asked whether it was true that in the Aussie PM's office that one of John Howard's minions had said to him(Gary Toomey) "we don't give a **** about Ansett, all we care about is Qantas". Mr. Toomey explained that the conversation was confidential, i.e. neither confirm nor deny.
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Look way back beyond Toomey for scapegoats. Way back. Look to past Australian governments, well meaning though they may have been.
The Two Airline Policy in Australia was put in place to protect Ansett. TAA with Caravelles would have wiped the floor with them. TAA got Electras instead. Ansett were given TAA's Viscounts too (they were the days when TAA led the world in fleet choices!). Bob Hawke became the first ever Ansett Prime Minister with well publicized total access given to friends Abeles and Kelty (Is little Bill going to help Lindsay Fox buy Ansett now?) Keating foreced Ansett onto a reluctant Air New Zealand at the point of a political gun. Laurie Brereton tore up the Single Aviation Market agreement to protect (and sell!) Ansett and prop up Qantas' sale price. There were lots of fingers in the pie before Toomey and Anderson.
Having said that, Toomey was a senior executive at Australian in 1989 so he does have previous airline-destroying experience.
Cheers
Sherm
The Two Airline Policy in Australia was put in place to protect Ansett. TAA with Caravelles would have wiped the floor with them. TAA got Electras instead. Ansett were given TAA's Viscounts too (they were the days when TAA led the world in fleet choices!). Bob Hawke became the first ever Ansett Prime Minister with well publicized total access given to friends Abeles and Kelty (Is little Bill going to help Lindsay Fox buy Ansett now?) Keating foreced Ansett onto a reluctant Air New Zealand at the point of a political gun. Laurie Brereton tore up the Single Aviation Market agreement to protect (and sell!) Ansett and prop up Qantas' sale price. There were lots of fingers in the pie before Toomey and Anderson.
Having said that, Toomey was a senior executive at Australian in 1989 so he does have previous airline-destroying experience.
Cheers
Sherm
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10 years from now there will still be people bleating on about Toomey and blaming him for every aviation tragedy since Tenerife.
Let me see if this is correct. QF has got Air Pacific flying their routes in NZ while there are plenty of NZ pilots out of work. And Air Pacific has a policy (though it's not too successful) of only employing locals for the jet ops. And QF have got Canadians flying in OZ and NZ while Aussie pilots are out of work. And the trade unions that threatened to shut down Air NZ have gone awfully quiet since striking a deal with Qantas management to get a pay increase for its members if Ansett stays dead ie no 737/747/767 Ops. So we have a union shafting the members of another union for the benefit of its own members. Is this, or is this not the most f**ked up industry in this neck of the woods?
Let me see if this is correct. QF has got Air Pacific flying their routes in NZ while there are plenty of NZ pilots out of work. And Air Pacific has a policy (though it's not too successful) of only employing locals for the jet ops. And QF have got Canadians flying in OZ and NZ while Aussie pilots are out of work. And the trade unions that threatened to shut down Air NZ have gone awfully quiet since striking a deal with Qantas management to get a pay increase for its members if Ansett stays dead ie no 737/747/767 Ops. So we have a union shafting the members of another union for the benefit of its own members. Is this, or is this not the most f**ked up industry in this neck of the woods?
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Alby you're so right. Air NZ ALPA pilots have been being shafted by an excuse of another union for 11 years AT LEAST! (They were shafting us before when they were members of ALPA, at least we can count them now!) 