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The union representing many of Air New Zealand's ground crew says it is close to reaching a deal to save hundreds of jobs.
The airline is seeking to contract out the jobs done by about 1700 baggage handling and passenger check-in service staff to Spanish company Swissport.
The Engineering, Printing and Manufacturing Union (EPMU) said the airline's healthy half-year profit showed there was no reason to rush the decision.
Despite announcing a $74 million half-year profit yesterday, Air New Zealand chief executive Rob Fyfe pointed out there was a 16 per cent drop in revenue in the airport services division, where the baggage handling and frontline jobs are in jeopardy.
Giving the jobs to outside companies was still on the cards, Mr Fyfe said.
Independent aviation analyst Peter Clark told Radio New Zealand today that the airline had to be realistic.
"If Air New Zealand can outsource to an international company ... and they can do it cheaper than Air New Zealand can do it, I think they have to go ahead," he said.
Service and Food Workers Union spokeswoman Jill Ovens said staff would be unhappy to hear about the size of the airline's profit.
"Our members took a nil pay increase, they worked their guts out to help work together to help save this airline, and they feel that they are getting kicked in the guts."
However, EPMU national secretary Andrew Little said that during a meeting last week both parties agreed to a number of initiatives which could prevent the move.
"We've agreed to a range of things that we understand would prevent the airline from contracting out.
"When you get a profit result like we saw (yesterday) you'd hope that the airline would think that there is a future here.
"It doesn't have to be contracted out and we'll just work with the unions to achieve that end."
The latest profit result showed that there was at least time to sign off on an agreement, he said.
Mr Fyfe said the airline was looking at a range of measures to cut costs across the board including cutting pay and overtime, encouraging customers to use the internet to make bookings, and using more fuel-efficient aircraft.
- NZPA
