E Tu doesn’t understand there is no money!

Stuff reports:

staff are “absolutely devastated” by news the airline will cut more than 1300 jobs across all routes it operates, a union says. …

One E tū cabin crew member, who wished to remain anonymous, said they were “absolutely devastated.”

“Having seen first-hand the work done by our union members, and still having this result, is crushing. Air New Zealand values its staff less than its profit and shareholders, which so sad to see unfold.” 

What part of of a 90% revenue drop can’t they understand?

Its insane to be complaining about Air NZ valuing its profit and shareholders more.

There is no profit. Even with these staff cuts Air NZ is making a loss in the hundreds of millions.

Shareholders have had the value of their shares drop by 67% or so – from $3 to just over $1. Also they will not be getting any dividends for probably years to come.

Air NZ has burnt through most or all of its cash reserves. It will be literally unable to pay its bills if it doesn’t reduce the number of staff it has. Even the Govt loan of $900 million only gets you so far.

Air NZ spent $2.4 billion in the last six months of 2019. Their six monthly revenue is now probably $300 million so they run out of money in weeks, not months unless they cut staff numbers.

Apart from the fiscal issues, it is also an insanity to have the union insist staff be kept on as employees when there is literally no work for them. There are no international flights and domestic flights are minimal.

Don’t get me wrong. It is devastating for so many great Air NZ employees who are losing their jobs. But to blame Air New Zealand for making decisions that keep it solvent is stupid. Air New Zealand would actually go bankrupt if it doesn’t reduce costs to match revenue.

Comments (101)

Login to comment or vote

Add a Comment

%d bloggers like this: