Origin Pacific Has No Agreement With Air NZ

Origin Pacific Has No Agreement With Air NZ

Origin Pacific has announced it is suspending its passenger service operation and has referred its customers to Air New Zealand for their forward travel arrangements.

This advice is premature as Origin is yet to agree arrangements with Air New Zealand for carriage of its customers.

Air New Zealand’s current terms of trade with Origin are payment in advance. Once receiving confirmation of continuation of this arrangement, Air New Zealand will be in a position to reaccommodate Origin’s customers on our services.

Air New Zealand’s Chief Financial Officer Rob McDonald said it was sad to see Origin Pacific’s passenger services suspended, particularly after Air New Zealand (along with other creditors) forgave 60 percent of its debt and deferred payment of another 40 percent of its debt as part of a rescue package for the regional carrier in 2004.

Mr McDonald says with fuel increases of around 80 percent in the past two years and the demand for travel starting to soften it was always going to be difficult for Origin to run a profitable passenger business.

“Unfortunately, a reality of these tough times is that not every airline is going to survive. It was only last month that we saw the national airline of Brazil fail and we have all observed what has happened in the United States with United Airlines, Delta, Northwest, Hawaiian and US Airways all operating under bankruptcy protection in recent years.

“These tough conditions have also seen Air New Zealand having to make some hard decisions, which are reflected in more than 900 job losses in the past year and the recent announcements that we are suspending flights between Auckland and Singapore, Christchurch and Los Angeles and Auckland and Taiwan.”

Meantime, Mr McDonald says Air New Zealand would encourage Origin’s passenger staff who are faced with unemployment, but are keen to continue their aviation career, to contact the airline’s recruitment line on 0800 747 500, although the airline could not make any guarantees of employment.

ENDS

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