Post by corsair67 on Jul 10, 2008 11:16:00 GMT 12
I admire their stance on senior executive salaries, but the possible job cuts aren't good news for other staff.
From The Australian -
www.theaustralian.news.com.au/story/0,25197,23995706-23349,00.html
Airline flags further job cuts
Steve Creedy, Aviation writer | July 10, 2008.
AIR New Zealand has frozen senior executive salaries and flagged further staff cuts as it continues to grapple with high fuel prices and softening consumer sentiment.
Air NZ chief executive Rob Fyfe has also warned other managers to expect a cut in take-home pay and told union workers wage rise may not match CPI increases.
Mr Fyfe told staff that the new Zealand carrier faced one of its most challenging financial periods as tough economic conditions hit consumers around the globe. "More than ever we need to be looking at every aspect of our business to minimise cost and seize opportunities," he said.
"The latest move to contain cost will be to freeze the salaries of my direct reports along with myself. We will review this position when business conditions improve, hopefully sometime in 2009."
Mr Fyfe put other senior staff on notice that pay rises would need to be accompanied by an increase in productivity or there would be "a reduction in head count".
He said many of these managers would also experience a reduction in take-home pay this year compared with the previous year, because of the fall in short-term incentive payments.
"I have also challenged each division to identify opportunities to review non-essential activity and reduce employee numbers through attrition and non-replacement of roles that are not operationally critical," he said.
"As we face these rocky times in the aviation industry, we're doing our best to achieve fair pay settlements for Air New Zealanders who are part of union collective agreements.
"However, it will be increasingly difficult to maintain increases in line with CPI if conditions continue to deteriorate."
Air NZ has increased fares three times since March and two profit downgrades in last financial year's second half, reducing pre-tax profit expectations from $NZ268 million to less than $NZ200 million, as fuel soared by 60 per cent.
It has also reduced services on poorly performing routes replaced Boeing 747-400s with smaller B777-300ERs on some routes.
Mr Fyfe warned earlier this week that there could be a rapid and significant reshaping of the industry in the next 12 to 18 months if high fuel prices persisted.
Yesterday, he encouraged airline staff to identify ways in which the airline could contain costs and generate more revenue.
"We've made huge progress over the last five years in building a world-class airline thanks to the efforts of Air New Zealanders throughout the business and I am determined that we don't squander the gains we have made as we confront yet another crisis in the aviation industry," he said.
AirNZ shares closed up 3.5c yesterday at 90c. Qantas and Virgin Blue also gained as oil prices fell $US5.33 a barrel.
From The Australian -
www.theaustralian.news.com.au/story/0,25197,23995706-23349,00.html
Airline flags further job cuts
Steve Creedy, Aviation writer | July 10, 2008.
AIR New Zealand has frozen senior executive salaries and flagged further staff cuts as it continues to grapple with high fuel prices and softening consumer sentiment.
Air NZ chief executive Rob Fyfe has also warned other managers to expect a cut in take-home pay and told union workers wage rise may not match CPI increases.
Mr Fyfe told staff that the new Zealand carrier faced one of its most challenging financial periods as tough economic conditions hit consumers around the globe. "More than ever we need to be looking at every aspect of our business to minimise cost and seize opportunities," he said.
"The latest move to contain cost will be to freeze the salaries of my direct reports along with myself. We will review this position when business conditions improve, hopefully sometime in 2009."
Mr Fyfe put other senior staff on notice that pay rises would need to be accompanied by an increase in productivity or there would be "a reduction in head count".
He said many of these managers would also experience a reduction in take-home pay this year compared with the previous year, because of the fall in short-term incentive payments.
"I have also challenged each division to identify opportunities to review non-essential activity and reduce employee numbers through attrition and non-replacement of roles that are not operationally critical," he said.
"As we face these rocky times in the aviation industry, we're doing our best to achieve fair pay settlements for Air New Zealanders who are part of union collective agreements.
"However, it will be increasingly difficult to maintain increases in line with CPI if conditions continue to deteriorate."
Air NZ has increased fares three times since March and two profit downgrades in last financial year's second half, reducing pre-tax profit expectations from $NZ268 million to less than $NZ200 million, as fuel soared by 60 per cent.
It has also reduced services on poorly performing routes replaced Boeing 747-400s with smaller B777-300ERs on some routes.
Mr Fyfe warned earlier this week that there could be a rapid and significant reshaping of the industry in the next 12 to 18 months if high fuel prices persisted.
Yesterday, he encouraged airline staff to identify ways in which the airline could contain costs and generate more revenue.
"We've made huge progress over the last five years in building a world-class airline thanks to the efforts of Air New Zealanders throughout the business and I am determined that we don't squander the gains we have made as we confront yet another crisis in the aviation industry," he said.
AirNZ shares closed up 3.5c yesterday at 90c. Qantas and Virgin Blue also gained as oil prices fell $US5.33 a barrel.
