350 jobs saved as jet work picks up

The jobs of about 350 workers at Air New Zealand's joint venture engineering plant at Christchurch now appear safe.

Forty staff at the centre, a joint venture of Air NZ and US engineering giant Pratt & Whitney (which owns 51 per cent), were made redundant in November, and further layoffs loomed unless business picked up.

Christchurch Engine Centre manager Barry Geddes is overseas but his deputy, materials manager Allan Jones, says the question of further redundancies is a dead issue.

The centre faced the crisis after the terrorist attacks of September 11 exacerbated the downturn in the global aviation industry.

Airlines flying reduced schedules are making more use of engines from their grounded aircraft and not sending as many engines for servicing.

The centre's biggest project, a new engineering line to overhaul the huge V2500 engine used on big jets such as the Airbus 340, was deferred.

The centre was also hurt by Air NZ's decision to phase out its ageing Boeing 737-200 aircraft, whose engines the centre maintained. The last of those aircraft flew last month. But despite these setbacks, it now appears that management initiatives to counter the business downturn have been successful.

Fighting back, the centre in late November began a two-month worldwide campaign to visit about 40 airlines in a bid for new work, assisted by Trade New Zealand.

In a notable coup, the centre gained Canadian Government approval to allow Canadian airlines to have their jet engines serviced in Christchurch, after pressure from the NZ Government and diplomatic staff.

Previously, the Canadians had refused to allow the engines to be serviced overseas.

The centre's Rolls-Royce Dart engine line, which powers turboprop aircraft such as the Fokker Friendship and Hawker Siddeley, has also been busy with overseas jobs.

The centre is also keen to service Air NZ's new Boeing 737-300 aircraft.

Air NZ has been sending many of its 300-series engines to the US, Europe and Malaysia for servicing.

Although retooling to service these engines would cost an estimated $3 million, there are about 10,000 such engines in use worldwide, which would provide a lucrative source of income for the centre.

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