Origin Pacific Airways Announce 93 Jobs Lost

Origin Pacific Airways Media Release
11 May 2004

As a result of flight schedule changes Origin Pacific must make, following the termination of codeshare and aircraft wet lease agreements with Qantas Airways, staff redundancies are unavoidable. Following a consultative process with staff a total of 65 employees will be made redundant with a further 28 taking voluntary redundancy. Of this number 19 staff are affected in Nelson, 26 in Christchurch, 8 in Auckland, 7 in Wellington, 4 in Queenstown and 1 in Napier.

A number of companies with whom Origin has relationships have indicated their willingness to consider employment of staff affected and consultant Sara Poore will be working with them on our behalf to assist staff find alternative employment.

The creditor compromise proposal Origin Pacific made to it’s major stakeholders/creditors was adopted on Friday by a large majority being 89% in number and 86% in value in favour of the proposition. Details will be now be circulated to the affected parties. The Airline believes the support received reflects the understanding the majority of it’s stakeholders have regarding the position that Origin found itself in following Government participation in the airline industry and the downstream consequences of that in respect of the termination of the Airlines wet lease and codeshare arrangement with Qantas. Management believe this overwhelming support reflects the strength of the relationships Origin has with major suppliers and stakeholders who genuinely want to see the Airline succeed.

Origin is now finalising a reduced flight schedule for the coming winter season and this is being progressively entered into the Airline’s inventory system. Whilst Origin’s flight schedule over the last three years was to a large extent a hub and spoke network to the Qantas Boeing flights at Christchurch and Wellington, the future schedule will be designed to reflect principally single sector journeys with some networking opportunities to destinations served by the Airline.

The flight schedule from Nelson will be modestly enhanced with the addition of a direct weekday service to Hamilton and an additional midday direct Jetstream 41 service to Auckland, timed to connect with afternoon departures of international airlines.

Blenheim schedules will remain very similar to that operated over the summer period but all other routes will see some weakening in Origin capacity either by reduction in aircraft gauge or flight frequency. Services to Rotorua will be discontinued and Queenstown services are being reduced to peak day and charter operations.

The Airline is extremely appreciative of the public support received in the past week with flight reservations continuing at close to normal levels.

ENDS

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