Air New Zealand is reducing capacity by a further 3 per cent, and is signalling 80 job losses.
It is also reiterating a call for more government funding of tourism promotion to help it protect its position in international markets.
The Hong Kong to London service will reduce from dailyto five days a week from mid-October and there will be reduced services on some domestic routes serviced by regional airlines.
The airline said it had a surplus of up to 40 cabin crew and pilots in regional airline and domestic jet operations.
There may also be a loss of around 40 airport handling roles in Auckland and Christchurch as a result of Qantas terminating its domestic services.
Qantas is closing its domestic New Zealand operation, for which Air NZ provided airport staff, and its budget airline Jetstar will instead compete domestically against Air NZ.
Air NZ is also looking for more flexibility from workers on its A320 aircraft flying the trans-Tasman route. It did not give details.
The Engineering, Printing and Manufacturing Union (EPMU) said it was notified of the proposals this afternoon and expected to meet the company soon to open consultation on its plans.
The proposals affect EPMU members in the airport services and Zeal 320 Ltd units of Air NZ. Zeal workers have been in dispute with Air NZ on pay and conditions.
The union said it would work vigorously to protect members' interests.
Air NZ has been cutting capacity to keep load factors up as the number of people travelling declines due to the global economic downturn.
"Air NZ will cut group wide capacity for the 2010 financial year by a further 3 per cent in response to reducing demand as consumers tighten their belts in the face of the global economic recession," the airline said today.
The airline employs about 11,000 people.
It said it would strongly lobby the Government over coming weeks to increase funding for tourism.
"Air NZ is at risk of seeing its share of international tourism diminish as competing destinations significantly increase their marketing spend," the airline said. The airline spends about $100 million a year on marketing internationally.
