Poor Air NZ

Stuff reports:

On its long-haul network Air New Zealand will be reducing its capacity by 85 per cent over the coming months and will operate a minimal schedule to allow Kiwis to return home and to keep trade corridors with Asia and North America open. Full details of this schedule will be advised in the coming days. …

Chief executive Greg Foran said, based on what the airline could see on Monday, its 12,500 workforce would drop by 30 per cent.

So 3,500 staff will lose their jobs. Terrible.

The New Zealand Airline Pilots’ Association president Captain Andrew Ridling said he understood it would not be a short-term measure.

“The industry is aware that, until this unprecedented situation developed, Air New Zealand would have had forecasted annual revenue of approximately $6 billion   I would no longer be surprised if that forecast is reduced to around $1b,” he said.

Air NZ last year had costs of around $5.4 billion. If their revenue is $1 billion, it seems inevitable they will need government assistance.