Air N.Z. cuts may save $10M

Press, 9 February 1983, Page 6

Air N.Z. cuts may save $10M

By

LES BLOXHAM

Travel editor

Air New Zealand is saving an estimated $8 million this year as. a result of its airport restructuring programme. Fewer staff and a more efficient use of those remaining is making a significant contribution to the airline’s bid to cut costs.

The programme, part of the over-all recovery plan announced last April, will be completed next month. By then, the total saving is expected to be closer to $lO million a year. Last year the cost of handling aircraft — passengers, baggage, cargo, and cleaning — at New Zealand’s airports cost the airline about $6O million.

Of this the biggest percentage, some $42 million, was paid in wages. About 1500 people are employed — traf-

fic check-in staff, cargo staff, loaders, cleaners, storemen and. ground stewards — to ensure the smooth turnaround of flights throughout the country. In some of the smaller provincial centres, such as airports at Whangarei, Taupo, Hokitika, Oamaru, Timaru, and Westport, the work is done under contract.

A detailed study of these and other provincial airports is now being made'to determine if and where further savings can be made. “Our aim is to run the airports as an efficient business,” said the manager of the airline’s traffic services department, Mr R. E. Birch. "We are confident that we can do better than we have done in the past.” Mr Birch said changes had been made after a close look at the handling procedures at

the three mam airports. “It was obvious in some locations that we had unnecessary management and supervision and that our staff deployment practices were inefficient," he said.

“Our staff are now being deployed according to work demand instead of the rotating roster and other methods adopted over the years. At the time of .their introduction they might have been satisfactory, but in the cold light of today’s economics they are deficient,” said Mr Birch.

The biggest changes have been made at Wellington and Auckland where staff have been integrated to handle both domestic and international flights. Christchurch staff adopted such a policy some years ago. This is producing huge savings in reduced overtime and other penalty pay-

Staff numbers have also been reduced by about 13 per cent as a result of the airline’s voluntary redundancy scheme.

With the airport reorganisation plan now almost completed, Mr Birch is fairly confident that there will be no compulsory redundancies. “I believe that very few Sle who wish to stay on the company will not have the opportunity to do so,” said Mr Birch.

Air New Zealand has not only been closely examining what is being done at its airports, but also how that work is being done in a determined effort to streamline handling and improve on-time performance. Passengers might- notice, for instance, that their bags are now appearing on the carousels more promptly than they used to.

Mr Birch gave an assurance that the present 15 minute check-in time, which is among the shortest of any airline in, the world, would not be changed. (Domestic airline passengers in Australia, North America, Asia, and many European countries have to report 30 minutes before departure). “There will also be no reduction in the number of staff on the check-in counters,” he said.

The responsibility for ensuring that the airline’s airport functions in future run efficiently rests on the shoulders of area managers appointed under the recovery plan. “I look upon .it as a pretty exciting time,” said Mr Birch. “The important functions taking place at our aiports are now getting the care , and attention they deserve."