Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC.
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.”