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Air New Zealand could cut staff by 3700 amid coronavirus outbreak

Author
Newstalk ZB / NZ Herald,
Publish Date
Mon, 16 Mar 2020, 4:20PM
(Photo / NZ Herald)
(Photo / NZ Herald)

Air New Zealand could cut staff by 3700 amid coronavirus outbreak

Author
Newstalk ZB / NZ Herald,
Publish Date
Mon, 16 Mar 2020, 4:20PM

Air New Zealand could cut its workforce by as much as 3750, say the New Zealand Air Line Pilots' Association.

President Andrew Ridling said the company had told the union that based on current modelling, it will be looking to reduce employee headcount across the organisation by up to 30 per cent. The airline employs 12,500 staff.

''We understand this will not be a short term measure."

An Air New Zealand spokesman said the figure of up to 30 per cent was correct.

Travel restrictions have largely cut New Zealand off as a destination and the airline's domestic business is under pressure too.

The airline announced today it would cut its international network by up to 85 per cent.

"The industry is aware that, until this unprecedented situation developed, Air New Zealand would have had forecasted annual revenue of approximately $6 billion dollars. I would no longer be surprised if that forecast is reduced to around $1billion," said Ridling.

The association has just met with Air New Zealand senior management to discuss their network cut announcement.

"As NZALPA represent the majority of New Zealand's pilots and nearly every air traffic controller in the country, our greatest concern is for the employment and welfare of our members and their families, and that they are fully represented while commercial decisions are made due to the effects of the Covid-19 virus.''

The airline announced capacity reductions on their long haul network. They will be suspending flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar and Taipei from March 30 to June 30.

It is also suspending the London-Los Angeles service from March16 (ex-Los Angeles) and March 17 (ex-London) through to June 30.

The Tasman and Pacific Island network capacity will significantly reduce between April and June. Air New Zealand's domestic network capacity will be reduced by around 30 percent in April and May but Air New Zealand have said that they have no current plans to suspend routes but will cut frequency.

Other members waiting for announcements from Virgin and Qantas this afternoon.

"NZALPA are continuing to urgently and actively represent the need of our members and their families at the Government, industry and company levels. This includes the executive teams of all of our employer companies."

Hawaiian Airlines today announced it will temporarily suspend service between Honolulu and Auckland later this month due to new government entry restrictions.

The airline currently flies three times a week. The flights will stop on March 22 through to May 31.

It is also suspending services to Australia.

The airline has been flying to New Zealand for the past seven years d in response to the COVID-19 pandemic.

"We respect the efforts of our Australian and New Zealand neighbours to institute stringent public health measures, and we remain dedicated to resuming our service as we continue to closely monitor evolving market conditions and regulations," said Theo Panagiotoulias, senior vice president for global sales and alliances at Hawaiian Airlines.

Hawaiian is assisting impacted guests by offering travel waivers, re-accommodations on alternative flights or refunds.

American Airlines is also suspending its services for winter two weeks earlier than planned. Other airlines are expected to follow.

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