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Air New Zealand Proposes Outsourcing Some Engineering Services
Air New Zealand has today announced a proposal to outsource heavy maintenance on its long haul aircraft and engines.
Under the proposal Air New Zealand Engineering Services (ANZES) would outsource heavy maintenance of the airline’s long haul fleet of Boeing 747s and 767s as well as the new Boeing 777s, which start arriving at the end of this month. It would also outsource maintenance of the engines that power these aircraft. This work would be outsourced to a specialist, large scale maintenance centre in Asia or Europe.
Under the proposal around 600 jobs could be lost, mostly in Auckland. ANZES currently employs a total of 2,100 staff in Auckland and Christchurch.
Mr Sinclair said the company recognised the announcement would be unsettling for ANZES staff and their families and would provide support should the proposal go ahead.
The national airline’s share price fell to a fresh year low yesterday after chairman John Palmer announced an expected 57 per cent fall in profit and the likelihood of these possible 600 redundancies.
Mr Palmer told shareholders at the company’s annual meeting in Auckland yesterday that its expected profit before tax and unusuals would likely fall from $235 million in the previous year to $100 million in 2005/06.
Graham Muldoon
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