Close

Jobs on the chopping block at Air NZ

The future of hundreds of employees and the London route of Air New Zealand is up in the air.

The future of hundreds of employees and the London route of Air New Zealand is up in the air.

The airline is losing $1 million a week on its long-haul network, and according to a letter to staff obtained by the Dominion Post, Air NZ chief executive Rob Fyfe said the company had to be prepared to make some "tough choices".

He said a company-wide corporate overhead review was underway with a view to reducing costs in the face of lower anticipated demand and increasing price pressure from competitors.

"There are no sacred cows," Fyfe wrote.

Air New Zealand would need to adapt and innovate to find new sources of revenue, he said.

He said the airline was considering changes to its sales and marketing teams in the US and Britain – cuts that could amount to hundreds of job losses, Business Day reported.

But the airline said a comment attributed to Fyfe that pulling out of London was an option, was done so "out of context" and was not accurate.

This week Air New Zealand announced plans to resume a charter programme between Japan and New Zealand next year.

The weekly charter service between Auckland and Nagoya, Fukuoka or Kagoshima would run from January 25 to March 14.

Air New Zealand's Japan general manager Ed Overy said pre-sales for the charter flights were selling and the airline was focused on bringing new travellers into New Zealand from key parts of Japan.