QAC cuts staff to stay viable for upturn

Photo: ODT files
Photo: ODT files
The Queenstown Airport Corporation (QAC) says it has been forced to make talented and long-serving employees redundant to ensure its survival.

In a media statement yesterday, chief executive Colin Keel said the restructuring reflected its expectation activity over the next 12 months would be half that of pre-Covid levels.

He would not say how many employees had lost their jobs "out of respect for our people and particularly those who have left the business".

Flagged by the company in May, the restructuring was necessary because of the "gravity of the current situation and the expectation our recovery will be gradual over some years", Mr Keel said.

The government wage subsidy had allowed the company to keep on all its permanent staff until the end of last month.

"However, the sad reality is we have recently said goodbye to some very dedicated and talented people who have made a significant contribution to QAC and to the community in their time with the airports."

Some had worked for the company for many years.

"It has been a challenging time for the team, and I have appreciated the high level of professionalism and empathy that they have shown through this difficult process."

The company was considering applying for a government wage subsidy extension for its remaining staff.

The Otago Daily Times reported in May the company had let go all its contracted and temporary staff, while remaining staff had their pay cut by 5% to 20%.

It received $478,012.80 for 68 staff from the initial wage subsidy programme.

Mr Keel said the restructuring was part of its plan for stabilising the business and ensuring its recovery.

Although all business units had been affected, it had retained staff wherever possible so it had the "capability and flexibility" to respond to increases in activity as the district recovered.

“Looking forward, we recognise the important role we can play in supporting the recovery of the district and the broader region, learning the lessons from the recent period of significant growth and associated challenges and with a future focus on our commitment to sustainability and community.

"One silver lining is the opportunity to pause and reset, and for QAC, the airport businesses and the wider community, to work together to make decisions about the future."

guy.williams@odt.co.nz

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