Regions fearful of cuts to air service

By SCOTT MacLEOD transport reporter

Exporters and tourist towns are relieved Air New Zealand will survive but worried they could suffer as the airline trims its staff and services.

Unions and Air NZ workers are equally nervous about job losses, despite hearing that the Government will pump $885 million into the airline.

Air NZ has said that it is likely to cut both domestic and international services, both in terms of flight frequency and routes flown.

Many people in centres such as Rotorua, Palmerston North and Invercargill were stung by the demise of Qantas NZ in April and fear they could lose more services.

Marlborough Chamber of Commerce president Brian Moore said the region was starting to feel isolated.

The airline is yet to decide where to make cuts, but analysts have been quick to make predictions.

Christchurch aviation writer Les Bloxham estimated the airline would shed 1350 to 1800 jobs and scrap about 30 per cent of its flights between Auckland and Los Angeles. That, in turn, could affect flights to Britain via Los Angeles.

Domestically, the airline could halve the number of flights between Auckland and Christchurch and use bigger aircraft.

A former Air NZ insider said it was unlikely the airline would cut services to London because it would be nearly impossible to retrieve the landing slots, and Japan was too important for cargo. Melbourne and Korea were candidates for cuts.

But an international pilot who has flown with Air New Zealand for more than a decade felt the job-cut predictions were exaggerated and few international services could be trimmed.

Acting chairman Jim Farmer, QC, would not comment on the predictions but did say most cuts were likely to be to international rather than domestic services.

Air NZ's annual results show the airline made $149 million on domestic routes and lost $51 million on international flights, mostly across the Tasman.

There was mixed news for Ansett passengers yesterday. Those who paid for flights with credit cards before the airline's collapse can fly from Monday after a deal between the airline's administrator and a bank.

But the Star Alliance network of international airlines - including Singapore, United, Air New Zealand and Air Canada - reversed its pledge to honour frequent flyer trips booked in the weeks prior to Ansett's collapse on September 14.

It will now accept only Ansett tickets "issued" before the airline's grounding and that are in the possession of passengers.

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