Air NZ cuts 12 flights as second strike bites

Air New Zealand international flights will continue to be disrupted today by striking cabin crew, but the airline says fewer passengers are turning up in vain for cancelled flights.

Several dozen passengers arrived at Auckland Airport on Monday and Tuesday during an initial 48-hour strike by about 1000 long-haul cabin attendants, unaware they would have to make other travel plans.

But the airline said only a few made unnecessary trips to the airport yesterday, the first day of the second strike, as it had been able to contact more of the about 15,000 passengers caught by 85 flight cancellations.

Passengers face 12 cancellations today, and more disruption at the weekend and on Monday, before the end of the third and final strike.

Renewed pay talks continued in Auckland yesterday, for the third day since the sides agreed to get back together, but the airline has said it cannot restore cancelled flights even if a settlement is reached.

Air NZ said the talks so far with the Flight Attendants and Related Services Association were "constructive". The talks were still going continuing last night.

The National Party's industrial relations spokesman, Wayne Mapp, yesterday called on the warring sides to repair damage to the airline's reputation by abandoning the strikes and reinstating flights.

Leading travel insurer The Mike Henry Group, a leading travel insurer, said it had received about $10,000 in claims from people whose plans had been disrupted and expected to end up with about four times that level.

Claims manager Karl Dixon said he was satisfied Air NZ was looking after the accommodation needs of most delayed passengers, but his company had received claims from five who had to get home urgently.

Although he suspected some people would be happy to extend holidays for another five or so days in places such as Fiji or Hawaii at Air NZ's expense, one passenger his company was flying home earlier was a teacher who was keen to get back for the new school term.

Air NZ said it would lose about $4 million from the three 48-hour strikes.

However, it expected savings on costs such as fuel and labour would reduce that to between $2 million to $3 million.

The parties are not far apart on pay, as the airline has previously offered a 3.3 per cent rise against a union claim for 3.8 per cent, but issues outstanding include crew levels on new Boeing 777s, meal allowances, and annual leave.