Origin Pacific suspends operations

Nelson-based regional airline Origin Pacific has suspended passenger operations following a meeting between airline staff and management tonight.

The airline made the decision because of major financial troubles.

Origin Pacific managing director Robert Inglis tonight told the meeting in Nelson that the hoped-for capital injection had not been concluded in time to avoid suspending the passenger service.

Mr Inglis said he was making the announcement with enormous regret, particularly for the 260 staff, full and part-time, who work for Origin Pacific.

A separate freight carrying business will continue.

"I am truly sorry that some of our customers will have their travel plans disrupted by our announcement and regret that this could not have been avoided", Mr Inglis said at the meeting.

Mr Inglis said arrangements had been made with Air New Zealand to carry Origin Pacific passengers left stranded by tonight's announcement. It was suggested Origin Pacific passengers booked on flights in coming days contact Air New Zealand for assistance.

However, in a separate statement released tonight Air New Zealand denied an agreement had been made.

"Origin Pacific's advice is premature as Origin is yet to agree arrangements with Air New Zealand for carriage of its customers", the statement said.

"Air New Zealand's current terms of trade with Origin are payment in advance. Once receiving confirmation of continuation of this arrangement, Air New Zealand will be in a position to reaccommodate Origin's customers on our services."

In the statement Air New Zealand's Chief Financial Officer Rob McDonald said Air New Zealand would encourage Origin's passenger staff who are faced with unemployment, but are keen to continue their aviation career, to contact the airline, although would not make any guarantees of employment.

- NZPA, NZHERALD STAFF