Air New Zealand's new chief executive says redundancies cannot be ruled out as the company weathers financial turbulence in the Covid-19 outbreak.
The company has suspended its earnings outlook for 2020, saying events are moving at a rapid pace and the financial impact of the Covid-19 coronavirus is likely to be more significant than previously thought.
It has already estimated the outbreak could slash $75 million of its full-year profit.
Air NZ chief executive Greg Foran told Checkpoint demand is down 10 percent on average across all markets and still changing. The airline has already reduced capacity into Asia by 26 percent.
"What we saw four weeks ago … literally just when I started, and then what we saw two weeks ago is different to what we're seeing today, and I think we're finding that right across the globe.
"It's really hard to get a sense as to what this looks like, say, in four weeks' time."
It is too early to anticipate staff redundancies, Foran said, "but you can't rule anything out at the stage".
"This is emerging and we just need to think through this very sensibly, work with all our stakeholders in this, particularly our unions, and make decisions that are good for this business for the short, medium and long-term."
Foran has voluntarily taken a pay cut, taking about $250,000 of his base salary of $1.65 million.
"My concerns are with our customers and our staff, and I think it's appropriate that I've taken the action," he told Checkpoint.
The company is undergoing a wide-ranging review to assess where costs can be saved.
"It's not just what's happening in flight attendance, but what are we doing in terms of cargo, we're thinking about what's happening in the home office - this is total company review."
He would not rule out the possibility of Air New Zealand ending the year at an earnings loss. Foran said he has been in constant conversation with the Finance Minister and Prime Minister.
"I don't think we should be ruling things out or necessarily ruling them in at this stage. Let's understand this as we work through it and make good sensible decisions.
"The resilience of Air New Zealand has been proven, and I'm very confident that in time we're going to trade our way through this and we're going to have a terrific airline.
"One of the things which I learned when I joined the business a few weeks ago was that we actually have quite a significant medical team within Air New Zealand including our own doctor.
"So he's been very active and busy as you would imagine and there's been lots of communication out to all of our staff to let them know how things are going.
"We're having a look at how we're cleaning planes, what materials we use and how often we do it, and as the situation emerges we're adapting."
