[ad_1]
Air New Zealand’s wings have been clipped once again. It is cutting nearly 400 more international crew jobs and is seeking several hundred other workers on unpaid leave to be officially laid off.
The national carrier reported a loss of $ 454 million for the year ending in June and has cut 4,000 jobs as it struggles to stay in the air after Covid-19 decimated international aviation.
Air NZ is burning up to $ 85 million a month simply by keeping the doors open, and has begun taking out a $ 900 million government loan.
It is also planning a capital increase in mid-2021.
Chief Executive Greg Foran had hoped there would now be a full-blown trans-Tasman travel bubble. He said Control without him, the airline has been forced to shed more staff.
“They are our international long-haul crew, and that’s because we made the decision that the 777s will not be returning for some time,” Foran said.
“Also, the fact that the international borders where we expected to see some action in the Tasman Islands and the Pacific has not materialized so far.
“So we have too many, and in light of what we’re seeing, we think it’s appropriate that we take that step.”
It leaves Air New Zealand with 205 long-haul crew members, Foran said. Control.
“We have had about 500 licensed, effectively we are going without pay, and that allows us to get that crew back a little faster.
“We are having a discussion with the union about how we handle that crew.
“It’s complicated because the 500 who are on leave had already been fired, and then they chose instead of taking it to go on leave.”
Foran said he is hopeful the company can put the staff back on leave.
“By law, we have to follow this particular process and clearly our intention is to get these people back as soon as we open the borders, but as you can understand, that is not something that is under my control,” he said.
“We would love to fly through Tasman again and fly to the Pacific Islands. And I’m hopeful that at some point that’s exactly what we can do, but like everyone else, we’re waiting to see when that will happen.” was really working now.
Foran said the company is fortunate to have a high-performing domestic market.
“We are up and running, we are running around 70 to 80 percent of pre-Covid volumes.
“In terms of outsourcing and if that happens [in the future] That is a discussion and a decision that, once again, requires detailed analysis. We have no plans to outsource the cabin crew at this time. “
Foran said he is not ruling it out.
“It is very difficult to predict in the future exactly what will happen in the airline business.
“I think that would be a foolish position for any business … I don’t know, we’ll have to wait and see.
“The reality is that we are not investigating that at this time. But like any business, you will want to continue to consider options, particularly when faced with a crisis like we are in the airline industry.”
Money had already been set aside to deal with the layoffs, Foran said, but the company’s goal is to get people back on leave, based on feedback they’ve received from affected staff members.
Documents show Air New Zealand has paid more than $ 3 million in wage subsidies, but Foran said Control he was not aware of that.
He did not want to say exactly how much of the $ 900 million government loan has been withdrawn due to market sensitivity, but Foran has told the market that Air NZ is consuming between $ 65 million and $ 85 million a month.
“We continue to have a good dialogue with the government and as we said earlier we are working closely with them as we think about the capital structure in New Zealand.
“The loan was only placed there as a short-term line of credit before deciding what else to do, and we are working well to put the right plans together.
“Before June 2021, we hope to be in a position … to have a new capital structure at Air New Zealand.”
The government’s transportation contract with Air New Zealand has been extended from late December to late March, Foran said.
“It’s very valuable, it allows us to fly about 10 of our 787 dreamliners, which is equivalent to about 50 flights a week.
“As we get into the summer season, what will happen is that there is a chance that we can get a couple more planes in the air than that. Maybe get up to 60 or 70 flights a week.
“We are working closely with the Ministry of Transport and have just submitted a submission for the period from January to March, and we will have to wait to see how much of that is awarded to Air New Zealand.
“We’re hoping to get most of that, and it’s very important to us right now, and very important to New Zealand because it allows the product to be exported and imported.”
“If we didn’t have the benefit of a charter contract, I would have to seriously consider whether we would fly internationally.
“The cargo contract allows us to get those Dreamliners into the air. Move cargo, move some passengers, and keep several of our pilots and crew up to date. Therefore, it is of vital importance to us.”
