Air New Zealand reduces capacity by 85%

Air New Zealand has announced it has reduced capacity by 85% on its long haul network, the company said.

The airline will operate a minimal schedule to allow Kiwis to return home and to keep trade corridors with Asia and North America open.

Among the long haul network capacity reductions, the airline can advise it is suspending flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar and Taipei from 30 March to 30 June. It is also suspending its London-Los Angeles service from 20 March (ex LAX) and 21 March (ex LHR) through to 30 June.

The Tasman and Pacific Island network capacity will reduce between April and June. Details of these schedule changes will be announced later this week.

On the Domestic network, capacity will be reduced by around 30 percent in April and May but no routes will be suspended.

Customers are advised that due to the unprecedented level of schedule changes they should not contact the airline unless they are due to fly within the next 48 hours or need immediate repatriation to New Zealand or their home country.

Chief Executive Officer Greg Foran says that while airlines face an unprecedented challenge, Air New Zealand is better placed than most to navigate its way through it.

As a result of the downturn in travel Air New Zealand continues to review its cost base and will need to start the process of redundancies for permanent positions acknowledging the important role partnering with unions has in this process.

As part of Air New Zealand´s cost savings initiatives the Board of Directors will take a 15 percent pay cut until the end of this calendar year.