Job losses as Air NZ cuts services

Air New Zealand is pulling out of its Hong Kong to London service from March next year, a move that is expected to shed around 70 jobs.

Although the airline will continue to fly to Britain via Los Angeles, the service through Hong Kong had been struggling and was not expected to be profitable within the foreseeable future.

The airline's chief executive Rob Fyfe said about 70 London-based cabin crew jobs would be lost.

He also announced a code share deal with Cathay Pacific which will result in up to three daily services between Auckland and Hong Kong.

"The agreement will see both carriers continue to operate the same frequency between Auckland and Hong Kong while introducing code share on each other's flights as well as opening up excellent connections between New Zealand and Mainland China," said Fyfe.

He said the agreement would stimulate tourism from mainland China to New Zealand.

"Hong Kong is a key strategic Pacific Rim port and an important gateway to Mainland China for Air New Zealand. This agreement with Cathay Pacific will provide our passengers with a huge range of additional connections through Hong Kong to Mainland China, as well as access to better-value fares on these connections on Cathay Pacific or its sister airline Dragonair."

Passengers with tickets to travel with Air New Zealand between Hong Kong and London from March 4 2013 will be re-booked, in most cases onto Cathay Pacific's services.