Air New Zealand's chief executive officer Greg Foran says 30% of the workforce will not be needed amid the coronavirus outbreak.
The airline held a news conference this afternoon in Auckland, following the Government's announcement it was stepping in to help protect Air New Zealand from the turmoil caused by Covid-19, providing up to $900 million in loans.
Foran said the total number of Air New Zealand flights had fallen from 3600 a week to below 1500.
Air New Zealand has cut its international capacity by 85%, but it is also reducing domestic capacity.
Foran said it is continuing to work with four unions and staff options to reduce airline staffing by up to 30% of the existing 12,500 staff. Options include leave without pay, working part-time, taking leave, voluntary exit and redundancies.
He said the staffing reductions will have to continue despite today's loan bailout.
Foran said some staff could be redeployed to help the Ministry of Health in combating Covid-19.
Asked if it was discussing pilots' pay, Foran said the board of directors had taken a 15% pay cut and it was holding "discussions on what we do elsewhere".
He said not all airlines around the world will survive the downturn caused by the crash in travel caused by virus.
He also said the airline is ready to discuss with the government if it needs to organise flights to get Kiwis home.
The airline is flying out of the United States and Australia.
However in Asia, Foran said get yourself to Hong Kong and Singapore.
"But if it is obvious that there is a need for flights from other places to help bring Kiwis home, then we will absolutely discuss that with the Government and provide support."
The Finance Minister said the arrangement meant Air New Zealand could continue to operate, but given the unprecedented shock to the global aviation industry caused by Covid-19, the airline would still cut jobs.
"Without this intervention, New Zealand was at risk of not having a national airline," Grant Robertson said in a statement today.
"Air New Zealand has a unique and critical role in our economy and society. Also, the Government owns 52 percent of the company, which means we have a responsibility towards it. We have acted swiftly to put this loan agreement in place and support our national carrier.
"This agreement means that Air New Zealand is in a position to play its part in making sure Kiwis can return home from overseas and that essential flights and freight lines for goods like pharmaceuticals remain open by ensuring flights continue to and from key international destinations. The agreement also safeguards the domestic network, with flights assured to all current destinations."
Robertson said the Government was actively working with Air New Zealand on what can be done to support workers.
"This includes work underway through a separate process to mobilise some of Air New Zealand's workforce to other areas of our fight against Covid-19, including supporting the health response.
"Air New Zealand will play an important role in our economic recovery, when the disruption caused by this global pandemic is over."
- RNZ and NZ Herald
