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Joseph Johnson / Things
Within a year, Air New Zealand expects to be 30 percent smaller,
This story was originally published in RNZ.co.nz and republished with permission.
Air New Zealand’s internal documents predict that it will be two years before the airline can expect to return to 70 percent of its pre-Covid-19 long-distance business.
The airline flies just 5 percent of its normal international schedule and is in the process of firing 950 full-time cabin crew through its Boeing 787 and Boeing 777 fleets.
It has already cut 300 pilot jobs, despite raising more than $ 70 million in wage subsidies and having received a $ 900 million government loan.
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POOL VISION
Don’t expect the Australian-New Zealand border to open soon.
One day in May 2019, he would have seen the airline use 1,500 of its 3,000 cabin crew to operate its daily services. Now, in May 2020, it is using 150 in wide-body aircraft and only 53 in narrow-body or single-aisle aircraft used on domestic routes.
In a redundancy briefing document targeting workers, the company said the global pandemic has decimated the aviation industry, with Air New Zealand operating at just 5 percent of its normal international capacity, and it won’t increase for long.
“We are now looking at the real possibility that we will be a much smaller airline for the foreseeable future, and that the recovery will be much longer and slower than previously anticipated,” the document said.
Within a year, Air New Zealand expects to be 30 percent smaller, and is unlikely to see an improvement in revenue in 2020, the company said.
Redundancy briefing documents for staff show Air New Zealand is considering a union proposal to reduce the cabin crew daily rate by 7 percent, the equivalent of reducing the biweekly pay per day.
It has already been revealed that 300 pilots are losing their jobs and the 900 who are still working will have a 30 percent pay cut over the next nine months.
Air New Zealand has asked the cabin crew to be willing to take an unpaid leave to file, but that leave must be taken in 12 or 18 month non-negotiable blocks.
The rehire process for crews without a permit is still being resolved.
The airline has rejected a call to promise not to outsource contracts for the 787’s cabin crew for six years.
AP
Air New Zealand has asked the cabin crew to be willing to take an unpaid leave to introduce themselves.
“A guarantee on anything at this time is simply not possible. We are committed to doing work for our cabin crew by offering unpaid leave, we are also committed to supporting our redundant cabin crew to return to Air New Zealand through the rehiring process. ” the company said in a statement.
A network of redundancies in company documents is dominated by exits. All 98 flight service managers and 78 flight service coordinators are going to go.
All 367 premium service flight attendants left, and all 316 Pacific Class flight attendants crew left, along with significant reductions in other cabin crew duties.
One positive aspect for the company is that Air New Zealand has secured a charter contract: a six-week cargo letter. It means that 10 flight service managers and 190 other cabin crew will receive a postponement for the duration of the contract.
This story was originally published in RNZ.co.nz and republished with permission.
