Airline recovery plan 'must be flexible’

Press, 17 June 1982, Page 7

Airline recovery plan 'must be flexible’

PA Wellington Air New Zealand's recovery plan embodies' a flexible approach to the airline's requirements, says the Minister of Civil Aviation (Mr Gair). Whether some steps in the airline's plan would be put into effect would depend on the success achieved in other areas, he said in a letter to the Labour Party's transport spokesman. Mr R. W. Prebble. Mr Gair said that the recovery plan, designed to return the airline to profitability. was not rigid. “It would, for example, be surprising if there was any sudden, dramatic change in the pattern of domestic services.

“I have no doubt, however, of the company’s determination to maintain its. reputation for service of the highest quality. Nor need you be fearful of any diminution in the care given to safely considerations." Mr Gair

said. The early signs of a brighter future for Air NewZealand. which had lost about $9O million in the financial year, were beginning to appear. These had included the sale of surplus aircraft, better returns from more selective marketing, and progress towards the new Boeing 747 twiceweekly services to London. “The airline derives no help from the ill-informed allegations in your letter of wilful mismanagement and your appeal for widespread resignation." he said. Mr Gair's letter was in response to one by Mr Preoble seeking a ’ clear statement on the Government's policy toward Air New Zealand.

Mr Prebble had suggested that the staff being laid off were not responsible for the airline’s position. “Indeed, they are responsi-

ble for making <the airline one of the world's best." he said

The airlines over-staffing was the result of mismanagement of one of New Zealand's most important commercial entities, said Mr Prebble.

He suggested that board members who had allowed the situation to continue for some years should be asked to resign. Mr Gair should also accept responsibility and resign. Mr Gair said that no-one closely concerned with the airline was under any illusion about the gravity of its problems. “It is an enormous pity that any staff members would be lost as a consequence of the airlines reduced circumstances." he said.

But the airline had no choice but to implement stringent cost-cutting measures if real progress was to be made.