Air N.Z. faces legal action

Press, 1 June 1984, Page 2

Air N.Z. faces legal action

Air New Zealand will face legal action brought by the California Inn Management over the airline’s move from the Westwood Holiday Inn in Los Angeles to the Torrance Holiday Inn for crew accommodation. Air New Zealand flight crews made the change in October last year and the cabin crews followed at the beginning of this year after the airline’s management said that the move would save the airline $500,000 a year. An airline spokesman said yesterday that a telegram had been received from Mr Stephen Craig, an executive vice-president of California Inn Management, advising of its intent to submit the matter to a court. “We last had discussions with Mr Craig in February and as a consequence of those discussions we have been waiting to hear from him,” the spokesman said.

“The matter was under discussion between the parties and as a result was left to Mr Craig to have consultations within his own organisation and come back to us. He did not do so.” The airline had not expected the next communication with California Inn Management to be of the present nature, the spokesman said. When asked what sort of arrangements the airline normally had with hotels used for staff accommodation, the spokesman said he did not know and did not want to comment on such arrangements in case this was construed as applying to the Westwood Holiday Inn situation. He was unable to say whether a contract of any kind was involved, or whether there were any special circumstances. “We are treating the matter as sub judice,” he said.