Greg Foran Schools Cindy And Robbo - "We Just Can't Afford It"
5th June 2020 - make a note of that date.
This is the date the Coronavirus Coalition bubble burst.
Greg Foran, CEO of Air New Zealand today dished up the most brutal of news to New Zealanders who have made part-time occupations of whinging on social media about the airline and its refund policy. He fronted on every major media channel and simply told it like it was.
New Zealanders have become world leaders in whinging online about airlines. Ironically today Jetstar reverted to their normal type and ripped you all a new one yet again.
Stupid callers and hacks are saying Air New Zealand is doing "reputation damage" argh from what? Hello.....internationally they are still a fantastic and in these times ethical and woke airline. Let me show you the ways.
Foran manned up today brutally:
"We just can't afford it" he told Newstalk ZB
"Not enough cash in the bank for refunds" he told Red Radio
The Unions are all up in arms about further job cuts and redundancies. The pilots union seems to have looked after themselves rather well of course. They got away with 30 per cent pay cuts and only 300 job losses. What are the other 800 of the 900 going to be doing? Working the simulator??
"Sadly, almost 300 of about 1200 of our Air New Zealand jet pilot members are being made redundant this week (some taking voluntary redundancy) or are accepting early retirement.
Foran used to run Walmart, a company with $US75 billion in equity. That will not mean anything to New Zealanders who have little understanding of their nations insignificant place in the world. A flash Harry, in little old egalitarian New Zealand. He is credited in the USA for turning the company around by their press. He used to run a company worth even more than what Robbo will borrow for Covid. No New Zealander will be able to say that, well maybe one at a lower level and he works for Donald Trump.
Foran and his team have already slashed everything they can. I am confident of that. They are burning $5m a day. $1.1b in cash pre-Covid and $650m now - $500m just for Feb through to May. The $900m government loan has yet to be accessed but without a bubble delivered anywhere and international routes they just do not know. Air NZ does not decide this. Media are going to have to accept when a CEO says "I just do not know". They are asking the wrong people.
Basically what you are all arguing is that the taxpayer and their $900m, many contributors who cannot afford a holiday from South Auckland to Apia even pre Covid, are going to give you a cash refund for your family holiday to LA!
It is as brutal as that - a zero sum game at the moment.
Air New Zealand are effectively trading while insolvent. Again this may not seem much to the layperson. It is in the real world. If I did this in my career and was in the media for it the left and haters would have been all over it like butter. Fortunately for the Board, Robbo changed the laws so this is now allowed in the Covid Neverworld.
I will give you an example of what is really happening in the real world where I am typing from and not New Zealand’s bubble. I have flights booked with Virgin Australia around $1500 of travel during the T20 Cricket World Cup that is now unlikely to happen with spectators and $300 for Thai Airways.
Have a look online at both airlines. I will not even link. They are without putting too finer point on it - f***** beyond the most f***** thing without either taxpayer support or a new owner. Cannot even pay to put the fuel in the planes let alone the leases for them. If there is no buyer those flights will not exist. In both jurisdictions I doubt there is any law that puts me ahead of any creditor queue.
While I am not an epidemiologist, I am a lawyer with experience in liquidations, I have been a director during a liquidation.
When a company goes under as a consumer with anything owing, you are well f****. You are below in rank to all the loans, funding and staff in rank to get paid. There are no ethics or morality about it. You are below people with higher skin in the game.
New Zealanders have very small memories or have had divine luck in this regard but buckle up and get used to it once the wage subsidies are gone. Remember the whinging when you get a voucher for Xmas and in February the company shuts up shop? You don’t get your money back.
I would consider it a fabulous result if I got a credit on my flights as Air New Zealand have offered.
Foran was interviewed and then from the safety of her microphone HDPA bagged him for not being very nice about his turn of phrase and daring to try to spin his job as a challenge he looks forward to. Robbo criticised Air Nz saying they could have handled this better. People mentioned Rob Fyfe and compared his manners and how he would have dealt with it to Foran.
Foran quite frankly is in another league to all of the above. Comparing Heather du-Plessis Allan's worthiness to judge Foran for his comments, it is like a High School economics student interviewing Friedrich Hayek. HDPA is to her credit one of the more intelligent radio hosts and runs an intelligent show (in comparison with Ryan Bridge's talkback rubbish) so I am not bagging her, even if all her swipes at Foran were sissy ones taken when he could not respond. Robertson to Foran, well there is no comparison.
I would rather have Foran as Minister of Finance right now than any politician because he is the sort of guy you need to lead New Zealand out of the shit it will be in once Robbo runs out of wage subsidy cash.
And at this point he gives us the popping of the New Zealand bubble you now live in.
There is NO way to lie, bullshit, obfuscate, soften or tease you with the situation now facing some New Zealand businesses especially those in tourism and hospitality. They are gone burger without taxpayer funds right now, and not in the next months. Ardern and Robertson have soft sold Covid-19 with a fear campaign, first convincing you that you would all die, next that only the pair of them and their walking PPE Ashley can save you. That worked, until the point people lose cash.
Not even Jacinda Ardern and her soft hugging bullshit would be capable of sugar coating the simple fact that Air NZ is f***** and you won’t get your credits back in cash. There is no cash.
At this point Air NZ is run by Greg Foran. A man who took Walmart out of a hole. The starkest of comparison in style is Rob Fyfe who the media loved but guess what, he ran the airline as Chris Luxon did during the glory years. Fyfe should largest decisions in comparison look as hard as what body paint to wear. Fyfe offered to be a liaison between business and Ardern. Even Fyfe couldn’t handle the bs from the politicians and bureaucracy. I bet he couldn’t also handle how god damn stupid and slow they all act and has learned his lesson never to go near Wellington again.
Foran is precisely what Air New Zealand needs right now. A straight shooter with the honesty and guts to actually say how f****d the airline is. You all didn’t like it because you don’t like the truth. You have had Ardern’s “be kind” soft selling for months now telling you like infants that it’s all going to be ok.
For some businesses and a large number of households it is just not going to be and people are going to lose not only their businesses but their own cash, homes and lives.
Foran has today showed us what is required to make the economic recovery. Some plain truths.
When Grant Robertson cannot hide the true Economic devastation by printing money, then what? He is going to have to be Greg Foran was today and mention something you will not want to hear.
“We just can’t afford it”.
I do not think he has the balls to do this and Jacinda Ardern has not got the courage required to say this - ever. It will ruin her brand playing bad cop. She will never be allowed to mutter these words.
Muller and without a doubt the straight shooter Paul Goldsmith do and can. And that is the difference between National and Labour. Making those calls and saying publicly that you really cannot polish a turd.