March 15, 2020 / 8:52 PM / 14 days ago

BRIEF-Air New Zealand To Further Cut Capacity Across Network Due To Covid-19 Impact On Travel Demand

March 16 (Reuters) - Air New Zealand Ltd:

* IS FURTHER REDUCING CAPACITY ACROSS ITS NETWORK AS A RESULT OF IMPACT OF COVID-19 ON TRAVEL DEMAND.

* ON ITS LONG HAUL NETWORK AIR NEW ZEALAND WILL BE REDUCING ITS CAPACITY BY 85 PERCENT OVER COMING MONTHS

* TASMAN AND PACIFIC ISLAND NETWORK CAPACITY WILL SIGNIFICANTLY REDUCE BETWEEN APRIL AND JUNE

* WILL OPERATE A MINIMAL SCHEDULE TO ALLOW KIWIS TO RETURN HOME & TO KEEP TRADE CORRIDORS WITH ASIA & NORTH AMERICA OPEN

* ON DOMESTIC NETWORK, CAPACITY WILL BE REDUCED BY AROUND 30% PERCENT IN APRIL AND MAY BUT NO ROUTES WILL BE SUSPENDED

* SUSPENDING FLIGHTS BETWEEN AUCKLAND-CHICAGO, SAN FRANCISCO, HOUSTON, BUENOSAIRES, VANCOUVER, TOKYO NARITA, HONOLULU, DENPASAR, TAIPEI

* AS PART OF AIR NEW ZEALAND’S COST SAVINGS INITIATIVES BOARD OF DIRECTORS WILL TAKE A 15% PAY CUT UNTIL END OF THIS CALENDAR YEAR

* AIRLINE CAN ADVISE IT IS SUSPENDING FLIGHTS BETWEEN AUCKLAND & CHICAGO, SAN FRANCISCO, HOUSTON, AMONG OTHERS FROM 30 MARCH TO 30 JUNE

* TASMAN AND PACIFIC ISLAND NETWORK CAPACITY WILL SIGNIFICANTLY REDUCE BETWEEN APRIL AND JUNE

* ALSO SUSPENDING ITS LONDON-LOS ANGELES SERVICE FROM 20 MARCH (EX LAX) & 21 MARCH (EX LHR) THROUGH TO 30 JUNE

* IS WORKING CONSTRUCTIVELY WITH FOUR UNIONS REPRESENTING MORE THAN 8,000 OF ITS WORKFORCE TO ENSURE RIGHT OUTCOME FOR ALL STAFF

* AS A RESULT OF TRAVEL DOWNTURN, CONTINUES TO REVIEW COST BASE & WILL NEED TO START PROCESS OF REDUNDANCIES FOR PERMANENT POSITIONS

* ACCEPTING THAT FOR COMING MONTHS AT LEAST AIR NEW ZEALAND WILL BE A SMALLER AIRLINE REQUIRING FEWER RESOURCES

* WE ARE WORKING ON REDEPLOYMENT OPPORTUNITIES FOR SOME OF OUR STAFF WITHIN AIRLINE & ALSO TO SUPPORT OTHER ORGANISATIONS

* TRADING HALT CONTINUES TO BE IN PLACE AFTER THIS ANNOUNCEMENT Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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