Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Airport Services Update

11 October 2006

Airport Services Update

Air New Zealand has been advised by unions that they want to enter a 58 day consultation process over the future direction of its Airport Services division.

Airport Services is the part of Air New Zealand that manages processes ranging from check-in to tarmac operations and loading luggage for Air New Zealand and many other airlines in New Zealand.

It employs 1675 full and part-time staff based at Auckland, Wellington and Christchurch airports.

Group General Manager People Vanessa Stoddart says the Airport Services business is currently facing severe challenges.

“We have been working with staff representatives for many months to explore ways of improving the competitiveness of Airport Services and to reduce the loss of third party work as other airlines operating in New Zealand move to other suppliers. To date the speed of progress made has not been sufficient,” says Ms Stoddart.

“In the past two weeks, our second largest airline customer here in New Zealand has terminated their contract, because they perceive that Air New Zealand can no longer provide a competitive service. The loss of that contract could jeopardise approximately 160 Airport Services jobs.”

On Thursday last week the airline met with union leaders to outline the scale and urgency of the problem.

“The meeting was an opportunity to impress on them that if we can’t rapidly address the uncompetitive issues in our business, Airport Services will continue to lose customers and scale, and will struggle to remain viable.

“A key issue for Airport Services remains its current lack of flexibility to meet customer needs due to restrictive work practices,” Ms Stoddart says.

The union leaders were offered the opportunity to assist Air New Zealand in finding an urgent solution to the problem.

Their response has been to advise the airline today that the company should commence a formal 58 day consultation process in order to resolve the future direction of Airport Services.

“We will now reflect on the union’s perspective and expect to advise staff of next steps by the end of the week,” said Ms Stoddart.

“Nevertheless, in the event that we can’t develop a market competitive in-house solution, which is our strong preference, Air New Zealand will be forced to look to a third party airport services provider to deliver this service, just as all other airlines flying into and out of New Zealand do.”

If Air New Zealand proceeds with an outsource of Airport Services, it would expect the new provider to employ most of the existing staff with more flexible terms and conditions.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

Environment: Preliminary Environmental Data On New Zealand’s Air Quality Released Today

The Ministry for the Environment and Stats NZ have published the Our air 2021: preliminary data release today. We are currently working to revise the Our air 2021 report to incorporate analysis of the World Health Organization (WHO) 2021 air quality guidelines that were released on 23 September 2021... More>>

Statistics: Food Prices Rise For Sixth Consecutive Month
Food prices rose 0.5 percent in September 2021 compared with August 2021, mainly influenced by higher prices for grocery food and meat, poultry, and fish, Stats NZ said today. September’s movement is the sixth consecutive monthly rise. After adjusting for seasonality, prices rose 0.9 percent... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>

Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>

Bayleys: Latest Lockdown Adds Further Fuel To Industrial Property Market

The recent construction shutdown resulting from Auckland’s Covid 19’s lockdown restrictions has put additional pressure on an industrial property market that is already struggling to keep pace with demand... More>>