Air NZ to cut 200 jobs

Last updated 15:18 19/11/2008

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Air New Zealand will be laying off up to 200 full-time staff as demand for air travel slackens.

Chief executive Rob Fyfe said long haul cabin crew, recruitment workers, airline operations staff and technical operations planning workers, plus management would be affected.

“We have been working hard on a series of initiatives to minimise the need for redundancies,” Fye said.

“However, it has become clear that these measures will not fully address the excess staff levels we now have as a result of these capacity reductions, especially in the long haul business where capacity is being reduced by eight percent when compared with the last financial year.”

Fyfe said the redundancies would result in annualised savings in excess of $20 million.

Air New Zealand says it expects that the majority of the redundancies would be achieved on a voluntary basis.

Fyfe said Air New Zealand would start consulting to “disestablish” up to 100 long haul cabin crew positions along with six jobs in recruitment and seven jobs in the airline operations area.

Separate reorganisations were underway in subsidiary businesses, including Safe Air in Blenheim, with a small number of redundancies expected.

“We are also implementing a further phase of the technical operations restructure, which started in 2006, “Fyfe said.

“This will see up to 68 roles in the technical, planning and management areas disestablished to meet the new shape of the business and its current demand profile.”

Air New Zealand has about 11000 staff in total.

Qantas announced recently that it would be taking the axe to its domestic service in New Zealand in the wake of falling passenger numbers, but would not be cutting any jobs.

Air New Zealand said last week it would not be cutting down on it domestic routes, citing good business on its main trunk routes.

"We are currently enjoying good business on the main trunk and Queenstown routes," Air New Zealand group general manager for short haul airlines, Bruce Parton said at the time.

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