Air NZ job cuts 'rushed, poorly planned'

Air New Zealand planes parked up at Auckland Airport two during the Covid-19 pandemic. Photo:...
Air New Zealand planes parked up at Auckland Airport two during the Covid-19 pandemic. Photo: Supplied / Air NZ
Air New Zealand has rushed into poorly made plans to cut nearly 1500 people's jobs, E tū union says.

The national carrier plans to lay off 1460 cabin crew staff as it burns through $14 million a month in crew salaries with almost no revenue.

E tū head of aviation Savage said the airline had sped into a redundancy process despite having access to the wage subsidy, the government loan, and its cash reserves.

He said union members accepted the scale of the problem but wanted a fair transition.

The airline was risking its good reputation by rushing into this, he said, and risked destroying the company.

Last week Air NZ said Covid-19 had slashed its revenue by more than $5 billion.

In a message to staff, chief executive Greg Foran said international travel made up two-thirds of the company's revenue and that was gone now for the forseeable future.

The airline is now expecting to earn less than $500 m year. Before Covid-19, Air New Zealand had annual revenue of around $5.8 billion and a profit of $374 million.

Neither the Government's $900 million loan nor the wage subsidy scheme was enough to stave off cutting 12,500 jobs by at least a third, Foran had said.

Citing a 99% drop in domestic travel demand, the airline announced only a handful of return services a day would from Auckland, Wellington, Christchurch, Nelson and Dunedin.

Add a Comment






Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter