Originally Posted by
Ollie Onion
The training department have been told that the down training will take 38 rosters and realistically those who are needed on the Bus will be down trained and everyone else will just be allowed to become un-current and paid to sit at home with no work. This is a financial disaster for Air NZ and will lead to more job losses. Air NZ have just been on the morning news saying they now expect their domestic network to only be 50% until all travel and border restrictions are lifted.
I'm not so sure it'll lead to more Job losses.
As I said above, Wages and Fuel make up approx $2.6B of the $4.6B Annual expenses. Fuel is obviously way down and wages are dropping with redundancies. There's another $2B of expenses there which will need addressing.
Jet Pilot wages have probably reduced from ~$230M to ~$175M after Redundancies and the 14% Paycut.
If they make another 200 Pilots redundant, that could reduce the wage bill by another ~$25M, but also risks the remaining Pilots voting against extending the 14% cut beyond 9 rosters. It would also ground the Airbus fleet and require even more down-training.... $25M will not save Air NZ.
I expect we'll be asked to take a larger % Paycut before they make more Pilots Redundant.That's the only solution that keeps Pilots in their current seats, removing the need to re-shuffle everyone, and the only way to reduce the costs of the higher paid Pilots who are protected from Redundancy by Seniority.