Thursday, November 20, 2008

Santa comes early to Air NZ

In a not unexpected move, Santa came early to the largely taxpayer funded Air New Zealand yesterday putting 200 jobs on the block.
I'd love to be able to guarantee there won't be more job losses but I can't do that. The next six to 12 months are very difficult to forecast.

You can burn through a lot of cash if you don't adapt your business very quickly when your revenue and customer demand start to fall.
Any saving of taxpayers money has to be a Christmas bonus.
some members were in shock after receiving letters yesterday telling them their jobs were going

The usual suspects are screaming 'crisis', but the cuts are sound business in the face of the falling economy. Pruning unionised staff first is always a sound move. But as usual, they have their bases covered as there is an agreement not to stop hiring health and safety personnel when required. And guess where H&S drones are likely to come from?

Welcome to real world. Pity other SOEs are not so upfront about trimming their turkeys.

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