Air NZ set to shed 80 jobs, reduce capacity

Published: 2:48PM Friday May 29, 2009 Source: NZPA

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Air New Zealand is reducing capacity by a further 3%, and is signalling 80 job losses.

It is also reiterating a call for increased government funding of tourism promotion.

The Hong Kong to London service will reduce from daily to five days a week from mid-October and there will be reduced services on some domestic routes serviced by regional airlines.

The airline said it had a surplus of up to 40 cabin crew and pilots in regional airline and domestic jet operations.

There may be a further loss of around 40 airport handling roles in Auckland and Christchurch as a result of Qantas terminating its domestic services.

Air NZ is also looking for more flexibility from workers on its A320 aircraft flying the trans-Tasman route.

It has been cutting capacity to keep load factors up as the number of people travelling declines due to the global economic downturn.

"Air New Zealand will cut group wide capacity for the 2010 financial year by a further 3% in response to reducing demand as consumers tighten their belts in the face of the global economic recession," the airline said.

It has entered into discussions with unions on how to minimise any potential job losses from the cut in capacity.

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