Air NZ shockwaves starting to hit home

By SCOTT MacLEOD transport reporter

The messages rolling out of Reg Turner's fax Machine prove that shockwaves from the Air New Zealand crisis are starting to ripple through our economy.

One fax yesterday confirmed that two Australians would not be staying at Mr Turner's luxury Cassimir Lodge in Tauranga because their Ansett tickets were useless.

By 2.20 pm the lodge had received three cancellations, costing Mr Turner more than $4000 in reservations and the New Zealand economy thousands more in lost spending money.

Cassimir Lodge is just the tip of a growing economic iceberg that has frightening implications for the little people - those who run tourism firms, cater for aircraft, hold worthless airline tickets or work for Air New Zealand and Ansett Australia.

Ansett was grounded on Friday after running out of money, leaving 16,000 people out of work and fuelling anti-Kiwi anger among Australian unions, workers and consumers.

But yesterday the news seemed almost as bad for Ansett's owner, Air New Zealand, which was widely rumoured to be on the brink of receivership.

"I don't even know what the hell is going on," said one ground crewman when the Herald phoned.

Another said staff felt "crappy" about the airline's board, which he believed should have known about the problems in February.

"It could be us next," he said of the Ansett job losses. "There's a sick feeling in all our stomachs. We don't know what's happening."

Air NZ's problems looked so serious that unions, who have often fought against the airline, urged their sister organisations in Australia to ease off on their threats of a boycott that could wreck any recovery plans.

Service and Food Workers Union national secretary Darien Fenton said she feared for her 800 members at Air NZ and 250 more in the catering and cleaning industries.

"I'm really worried, as you can imagine," she said. "We've got a lot more at stake than the Australians. It's our national airline and the effects if it went under would be unimaginable. We'd be stuffed."

Engineering, Printing and Manufacturing Union national secretary Andrew Little said reassuring noises were coming from the Australian Council of Trade Unions but there was still a need for more calm.

New Zealand travellers have also suffered. Auckland mother Jane Collier said she tried to cash in her 18,000 Ansett airline points with Air NZ yesterday to find they were worthless and she would have to pay for a flight that should have been free.

Air NZ continued to accept tickets it had sold but refused to honour tickets for its own flights that were bought through Ansett.

One Wellington marketing manager who rang Air NZ for a ticket on Friday night ended up counselling a distressed operator who answered the phone after he had waited 47 minutes.

"She said she was depressed, that staff were getting emails saying they were worse than terrorists, and that she felt sick," the marketing manager said. "It just poured out of her for 15 minutes."

The Employers and Manufacturers Association reported deep concern from its members over a possible backlash against New Zealand products in Australia.

Chief executive Alasdair Thompson said Closer Economic Relations with Australia had brought many benefits, but business confidence was fragile and the international situation jittery.

"We're exploring the damage that might occur if we were to lose substantial transtasman cargo capacity. Australia and New Zealand are more than good neighbours. Our relationship must survive the present upset."

Ministry of Foreign Affairs and Trade figures show Australia is NZ's biggest export market, worth $14 billion each year.

If Air NZ goes to a receiver its aircraft would not have to be grounded. A receiver would be likely to keep the airline flying to recover costs for creditors.

Air NZ suppliers seemed to be holding firm yesterday.

Oil giant BP said the airline had paid all its jet fuel bills and the situation was business as usual. A manager at catering firm Caterair said there was no need for panic.

www.nzherald.co.nz/aviation

www.nzherald.co.nz/travel