Air New Zealand has decided to further reduce
capacity across its network.
On its long haul network, Air New Zealand will be
reducing its capacity by 85 percent over the coming months and
will operate a minimal schedule to allow Kiwis to return home and
to keep trade corridors with Asia and North America open.
Air New Zealand is expected to unveil the details of this schedule in the coming days.
Among the long haul network capacity reductions,
Air New Zealand has already confirmed that it is suspending flights between Auckland
and Chicago, San Francisco, Houston, Buenos Aires, Vancouver,
Tokyo Narita, Honolulu, Denpasar and Taipei from 30 March to 30
June. It is also suspending its London-Los Angeles service from 20
March (ex LAX) and 21 March (ex LHR) through to 30 June.
The Tasman and Pacific Island network capacity
will significantly reduce from 30 March through to
30 June 2020, although the dates may change if demand continues to
fall. Overall, Tasman capacity will reduce by 80 percent as
Wellington to Sydney: Reduced to two return services
Christchurch to Sydney: Reduced to two return services
Auckland to Sydney: Reduced to seven return services
Auckland to Brisbane: Reduced to five return services
Auckland to Melbourne: Reduced to seven return
services per week.
All other Tasman routes have been suspended from
30 March to 30 June as follows:
On the Domestic network, capacity will be reduced
by around 30 percent in April and May but no routes will be
Customers are advised that due to the
unprecedented level of schedule changes they should not contact
the airline unless they are due to fly within the next 48 hours or
need immediate repatriation to New Zealand or their home country.
Chief Executive Officer Greg Foran said, "The
resilience of our people is exceptional and I am consistently
amazed by their dedication and passion for our customers. We are a nimble airline with a lean
cost base, strong balance sheet, good cash reserves, an
outstanding brand and a team going above and beyond every day. We
also have supportive partners. We are also in discussions with the
Government at this time."
As a result of the downturn in travel Air New
Zealand continues to review its cost base and will need to start
the process of redundancies for permanent positions acknowledging
the important role partnering with unions has in this process.
"We are now accepting that for the coming months
at least Air New Zealand will be a smaller airline requiring fewer
resources, including people. We have deployed a range of measures,
such as leave without pay and asking those with excess leave to
take it, but these only go so far. We are working on redeployment
opportunities for some of our staff within the airline and also to
support other organisations," Mr Foran said.
The airline is working
with the heads of the four main unions representing more than
8,000 of its workforce.
As part of Air New Zealand's cost savings
initiatives the Board of Directors will take a 15 percent pay cut
until the end of this calendar year.
Air New Zealand,