Job woes add to Air NZ's problems

By DANIEL RIORDAN, Aviation writer

Staff at Air New Zealand's joint engineering venture in Christchurch are bracing themselves for layoffs as the aviation slowdown bites into another of the airline's profit centres.

The number of engines being sent to the workshop for repair has fallen by as much as 80 per cent since the September 11 atrocities, according to sources in the engineering unit.

The centre employs 350 staff. Before September 11, plans had been made to lift that number to more than 600.

The centre was launched in May when international engineering giant Pratt & Whitney paid Air NZ $67 million for a 51 per cent share of the engine maintenance facility at Christchurch Airport.

Many of Air NZ's engineers transferred to the new company.

The centre overhauls mainly JT8D and Rolls-Royce Dart engines.

Pratt & Whitney was to spend $60 million expanding the facilities to cater for more advanced V2500 engines, which it helped develop.

The status of those plans is unclear, but it is likely they are on hold.

Engineering, Printing and Manufacturing Union national secretary Andrew Little said yesterday he had no doubt layoffs were likely but there had been no indication from the company when they would happen.

He said he hoped some of those made redundant would find work at Air NZ or at Pratt & Whitney's Singapore facilities.

Forty centre staff, including 25 engineers, were reported to have been offered voluntary redundancy last month, but the Business Herald was unable to confirm if that offer has been taken up.

Some reports suggested a further 50 staff would be laid off before Christmas if business did not pick up.

Mr Little said none of his members at the centre had lost their jobs.

Air New Zealand spokesman Mark Champion said because the centre was a joint venture, comments on its future would have to come from its manager, Barry Geddes.

Mr Geddes did not return the Business Herald's calls yesterday.

One engineer said airlines flying reduced schedules were making more use of engines from their grounded aircraft and were not sending as many engines in for servicing.

He said underemployed engineers were being kept busy with maintenance work.

Air NZ said last month that it would cut the equivalent of 800 full-time positions, about half of them in management, from its dedicated workforce of close to 10,000.

Its top tier management group has been cut by half and the next group of managers are awaiting their fate.