Sex for travel probe at Air NZ

Air New Zealand has announced an internal inquiry into an alleged sex-for-travel scam involving prostitutes and its staff.

The national carrier late yesterday confirmed it was investigating "an alleged breach of its staff travel policy" related to staff travel privileges being used in return for sexual favours.

The statement came a day before details of the alleged scandal are to hit the newsstands in a cover story by Investigate magazine.

The magazine quotes an Auckland hotel staff member who claims a number of Air New Zealand employees have negotiated "a mutually beneficial arrangement" with sex workers where "in return for providing the hookers with discounted air travel", the employees receive free sexual services.

The hotel worker had contacted the magazine because he or she was angered after airline bosses confronted a female staff member who had circulated an email of All Black Dan Carter in a Jockey advertisement.

The hotel worker told Investigate that prostitutes used the Air New Zealand staffers to gain cheap travel deals through the airline's staff "buddy fares".

The hotel employee said up to 10 women, accompanied by Air New Zealand staffers, were "regular guests" at the hotel.

The airline yesterday confirmed that one staff member, in a non-management role, was under investigation following the story, but would not give details of the inquiry.

"Those are employment-related issues."

However, the airline did confirm details of Air New Zealand staff travel discounts.

On a "buddy fare", a person may travel with an Air New Zealand staff member anywhere in the world, up to four times a year.

With a "nominee fare", after 12 months' service an employee may nominate a person for unlimited travel, anywhere in the world.

Though the spokesman could not give accurate details of typical staff discounts, an Air New Zealand staff member, and buddy, could fly to destinations such as the Pacific Islands for about $170 return, plus taxes.

Air New Zealand employed about 10,000 staff around the world, "a large number of whom will be eligible for staff travel privileges".

In a statement released last night, Air New Zealand human resources group general manager Vanessa Stoddart said the alleged breach was being treated "extremely seriously".

"Staff travel is a privilege and not a right.

"We make it clear to all employees when they join the company that there are strict rules governing the use of staff travel. One of these is that it is not to be used for commercial gain."

Staff who abused company travel privileges could face the sack, she said.

The Air New Zealand staff travel programme has operated for several decades, and allows staff to use seats that have not been booked by revenue-paying passengers, on a standby basis.

Staff abuse of the scheme was "extremely rare", the airline said.