Jobs on line as Origin Pacific feels pressure of air wars

1.00pm

Jobs are on the line at Origin Pacific as the popular Nelson airline appears to be buckling under the pressure of New Zealand's viciously competitive air wars.

The fiercely independent airline, which has already complained to the Commerce Commission about alleged anti-competitive behaviour by Air New Zealand, admitted yesterday it was now considering ways of cutting costs.

Origin held meetings with its staff in Christchurch, Nelson, Wellington and Auckland yesterday afternoon and gave notice redundancies were a likely outcome of a revised winter flight schedule.

Only in December Origin was talking of expanding its fleet of 14 aircraft, which fly about one million passengers from 14 towns and cities each year.

Origin Pacific managing director Robert Inglis said yesterday it was too early to know how many of the airline's 450 part-time and full-time jobs might be at risk.

"It's possibly the equivalent of one aircraft. How many staff does that mean? I don't know yet."

Mr Inglis was initially reluctant to reveal what was covered at the meetings, saying they were to "discuss the implications of the current aero-political environment", but changed his mind after the New Zealand Amalgamated Engineering Printing and Manufacturing Union (EPMU) released details of what happened.

Asked if Origin Pacific was in trouble, he said: "The whole airline business globally is in trouble, isn't it? (But) no, it's not."

He blamed Qantas, Air NZ and the Government for making life extremely difficult for the regional airline, now in its eighth year.

"We're a victim of circumstances. We are really disappointed ~ this is the first time we have had to take such a step back."

The sudden dumping by Qantas of Origin Pacific as a code-share partner in January after 2-1/2 years had come as a huge blow on top of the Government's $885 million bail-out of Air NZ in 2001 and its subsequent introduction of its cheaper Express Class services, he said.

Since Qantas pulled out, Origin Pacific has established links with Malaysian Airlines, Garuda, Aerolineas Argentinas, KLM Royal Dutch Airlines, Air Tahiti Nui, Korean Air and P&O Cruises.

News of likely redundancies came just a day after a redundancy agreement was signed between the airline and the EPMU, which represents most of Origin's unionised staff.

EPMU Nelson area organiser Alan Clarence said the announcement that Origin was considering redundancies across the board had shocked and upset staff.

The union had become aware of the situation at Origin Pacific on Monday. "The company has approached staff at these meetings and they have had to talk about the need to reschedule, primarily driven by the loss of the Qantas code share.

"They have given notice that the company may have to propose redundancies."

Mr Inglis said yesterday's meetings had been the starting point for negotiations. Redundancy was not the only option and the airline would be looking at whether some full-time staff might choose to work part-time instead.

- NZPA