Air New Zealand grounds 777s and defers A321neo deliveries
Air New Zealand will ground its Boeing 777-200 and 777-300 fleet until at least the end of this year as part of organisation-wide cost-cutting measures. Including deferrals of planned Airbus A321neo deliveries, the airline has also deferred or cancelled almost NZ$700m in expected capital expenditure to December 2022, it said Tuesday. Air New Zealand’s existing fleet includes seven in-service 777-300ERs, between six and 10 years of age, and eight 777-200ERs, 13 to 15 years old and in storage. The carrier also has seven in-service and stored A321neos, and another seven A321neos scheduled for delivery between January 2022 and April 2024. Other measures include cancelling non-essential spend, reducing leasing costs and modifying various vendor and supplier terms. The company expects to see annualised savings of NZ$350-400m from a previously announced hiring freeze and 30% cut in staff strength that will affect 4,000 employees, and has scaled down its executive team accordingly. “Like all businesses at this time, we find ourselves facing an environment where revenues will be a small fraction of what we are accustomed to,” says CFO Jeff McDowall.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-05-27/star/air-new-zealand-grounds-777s-and-defers-a321neo-deliveries
https://portal.staralliance.com/cms/logo.png
Air New Zealand grounds 777s and defers A321neo deliveries
Air New Zealand will ground its Boeing 777-200 and 777-300 fleet until at least the end of this year as part of organisation-wide cost-cutting measures. Including deferrals of planned Airbus A321neo deliveries, the airline has also deferred or cancelled almost NZ$700m in expected capital expenditure to December 2022, it said Tuesday. Air New Zealand’s existing fleet includes seven in-service 777-300ERs, between six and 10 years of age, and eight 777-200ERs, 13 to 15 years old and in storage. The carrier also has seven in-service and stored A321neos, and another seven A321neos scheduled for delivery between January 2022 and April 2024. Other measures include cancelling non-essential spend, reducing leasing costs and modifying various vendor and supplier terms. The company expects to see annualised savings of NZ$350-400m from a previously announced hiring freeze and 30% cut in staff strength that will affect 4,000 employees, and has scaled down its executive team accordingly. “Like all businesses at this time, we find ourselves facing an environment where revenues will be a small fraction of what we are accustomed to,” says CFO Jeff McDowall.<br/>
