Air New Zealand “had no option” but to cut the jobs of 175 staff today, as plummeting profit margins force the national carrier into cost-cutting mode.
This morning, the airline reported a $38 million profit for the six months to December, a slump of 61 per cent from the same period last year.
Chief executive Rob Fyfe acknowledged the “disappointing” result, which also saw earnings before tax drop 71 per cent to $33m, from $112m previously.
The struggling global economy and rising fuel prices had led the company to enact a range of cost-cutting and efficiency measures over the coming years.
“We have had no option but to a take a series of actions, led by Rob, to say we need to accept the current economic situation”, said chairman John Palmer. “We need to change our business model to adapt.”…
via Air New Zealand to slash hundreds of jobs | Stuff.co.nz.
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