Air New Zealand will cut services from three towns and shut down subsidiary Eagle Airways as part of a revamp of its regional services.
The airline is investing an additional $100 million in planes for more popular routes but from April the airline will suspend services: Kaitaia - Auckland; Whakatane - Auckland; Whangarei - Wellington; Taupo - Wellington; Westport - Wellington and Palmerston North - Nelson. Hamilton - Auckland will also be suspended from February 2016.
As Kaitaia, Whakatane and Westport are single route ports, the suspension of these services means Air New Zealand will no longer operate to these destinations from the dates specified.
The 19 seat aircraft operated by Eagle is the smallest in the Air New Zealand fleet but had the highest cost per seat to operate because the fixed costs of operation are distributed across fewer passengers.
"This has led to Eagle Airways, which operates the 19 seat fleet, losing $1 million per month for the past two years, or the equivalent of $26 per one way passenger journey," said Air New Zealand chief executive Christopher Luxon.
"While today's news will be disappointing for some communities, Air New Zealand remains resolutely committed to regional New Zealand and the changes announced today will set up our regional business model for future sustainable success."