Air N.Z. to end DC8 Tasman link

Press, 20 October 1981, Page 1

Air N.Z. to end DC8 Tasman link

PA Auckland Air New Zealand will stop all its international services out of Wellington, the airline’s board said last evening.

The bid to relieve the airline of one of its most long-standing cost burdens is likely to result in the loss of DCB-related jobs of more than 300 staff, the airline said.

The secretary of. the Engineers’ Union, Mr E. W. J. Ball, said last evening that engineers were not impressed by the manner in which they heard about the decision — from the news media.

“We might take industrial action,” he said. “We will have to talk with our members and see how they feel.” Qantas will take over Wellington-Australia routes.

The airline’s board of directors yesterday approved a plan to end DCB passenger flights from Wellington from December 15. The airline’s two remaining DCB passenger aircraft will be withdrawn from service and offered for sale

with supporting spares, equipment, and flight simulator.

The DCBs will join two airline DClOs which have been on the market for some months. But Air New Zealand’s board chairman, Mr C. W. Mace, said he hoped to have sold at least one DCB by next February or March.

The airline said at least"as many seats and substantially more cargo capacity would be made available through Qantas on Wellinjgton international services.

Passengers already booked for flights beyond the cut-off date will be offered alternative flights. Arrangements have also been agreed to ensure that all tickets on Air New Zealand services after December 15 will be honoured on their existing basis.

The airline’s chief executive, Mr J. B. Wisdom, said the decision to stop Tasman flights from Wellington was one of the most difficult the airline had faced. For broad economic reasons, the DCB aircraft had

.become ill-suited to the short-haul type of route required by Tasman flights. “Losses on Wellington from this one source have risen progressively, mainly because of the aircraft’s unsuitability, from about $3 million in 1975 to an expected level of more than $l2 million in the current year,” said Mr Wisdom.

“Over recent years we have examined a number of alternative proposals in detail. These ranged from the use of other aircraft types, to the limited use of DCIO aircraft, but none of these showed the degree of financial benefit necessary to make a significant change to the continuing level of losses. "A decision of this magnitude necessarily brings with it obvious surpluses of staff in various areas. While final studies have yet to be completed, I think that more than 300 staff might well be involved as a direct result of this.

“As drastic as these steps are, they are absolutely essential to the airline if it is to achieve any reduction in the present high level of losses. “This does not mean we are abandoning Wellington. Our intention is to resume operations on international services when and if suitable equipment and circumstances permit. What it does is to permit the removal of the increasingly fuel-ineffi-cient DCB aircraft from the fleet,” said Mr Wisdom. This decision did not automatically mean the end to the recently begun DCB freighter flights. Qantas said last evening it would increase services to Wellington. “Qantas will • continue to maintain the total number of seats at present available and offer additional cargo capacity,” said a spokesman, Mr Jim Eames.

The Boeing 7475 P used by Qantas at Wellington is especially suited to the airport’s short runway.