Air New Zealand cutting 110 Jobs as part of Jet Engine Unit closure
Air New Zealand Ltd. is the biggest airline company in the country and they have now announced plans to close down its long-haul jet engine maintenance unit. This decision would also result in job cuts of around 110 workers. The company is also assessing the future of its wide-body aircraft engineering unit.
The move to close down its Jet Engine Unit would help save the company around NZ$53 million ($37 million) over five years. They are now due to make an announcement on their decision on the future of the aircraft unit in February. They might just continue to run their operations in the unit of the workers settle for a pay cut to keep the expenses down.
The airline company had earlier in October announced that they would be shutting down both of its units. That decision would have resulted in job cuts for around 617 employees. The aim was to save around NZ$100 million over five years because the businesses were uncompetitive. The unions have somewhat agreed to be more flexible with the demands of the company to keep the plants working.
Rob Fyfe, chief executive of Air New Zealand said in a statement: â€œIf the unions and their members are able to commit to extensive across-the-board labour reform, there may be an opportunity to retain some wide body airframe maintenance capacity in-house.â€ The company has to compete with players from the Chinese market and are struggling to match their prices in the market.