Air New Zealand had its shares suspended yesterday after it revealed further reductions in capacity across its network as the coronavirus crisis cuts demand for travel.
The airline has placed itself into a trading halt to allow it time to more fully assess the operational and financial impacts of global travel restrictions.
And CEO, Greg Foran said while airlines face an unprecedented challenge, Air New Zealand was better placed than most to navigate its way through it.
“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,” he said.
Soon after Air New Zealand released its statement, Qantas said it was planning new capacity cuts.
The airline said the cuts to its flying schedule will be in addition to those announced last week after Australia and New Zealand imposed tighter travel restrictions at the weekend due to the coronavirus pandemic.
Australia and New Zealand said international travelers would be required to self-isolate for 14 days upon arrival, in developments Qantas said would have a major impact on domestic and international demand.
“We’ve moved immediately to offer a booking waiver to our customers and we’re working through the implications for our schedule now given the expected impact on demand, with a view to announcing more detail as soon as possible,” a Qantas spokesman said on Monday.
That news saw Qantas shares enjoy a small rise yesterday, closing up 1.26%
Earlier, Air New Zealand airline said that on its long-haul network it will be reducing its capacity by 85% 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. Full details of this schedule will be advised in the coming days.
“Among the long-haul network capacity reductions, the airline can advise it is suspending flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar, and Taipei from March 30 to June 30.
“It is also suspending its London-Los Angeles service from this week through to June.
The Tasman and Pacific Island network capacity will significantly reduce between April and June. Details of these schedule changes will be announced later this week.
On the domestic NZ network, capacity will be reduced by around 30% in April and May but no routes will be suspended.
“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, He said.
Mr. Foran said the Air New Zealand was working with the heads of the four main unions representing more than 8,000 of its workforce to ensure the right outcome for all staff.
