Air New Zealand has announced plans to declare nearly 400 of its pilots redundant, as one of the means of trying to stay afloat amid the COVID-19 pandemic, that has seen the airline slash its capacity by 95%
According to the airline, about 30% of its staff will also be declared redundant in its attempts to cut its workforce by 3750 employees.
Read Also: KQ Sends Workers on Unpaid Leave
The airline CEO, Greg Foran, says that the redundancy will take place on a last in first out basis, approximating this year’s revenue to be about $300 million, a 90% decline on the previous year.
Furthermore, the airline has already negotiated a debt funding agreement with the government, which owns 52% of the airline, committing to lend up to $538 million should they need it. Last month, Air New Zealand applied for government assistance and was granted two loan reserves amounting to $900 million.
Air New Zealand is the flag carrier airline of New Zealand. Based in Auckland, the airline operates scheduled passenger flights to 20 domestic and 32 international destinations in 20 countries.