4000 jobs to go at Air NZ

Air New Zealand says it has not yet drawn down on the $900 million loan that the Government has given it as it grapples with a huge loss in customers due to Covid-19. The airline says cost cuts including a 30 per cent reduction in its labour force — or 4000 staff — will drive annual savings of $350m to $400m. Chief financial officer Jeff McDowall said the company’s shortterm liquidity as of Monday was $640m, which does not include the government loan. As well as redundancies, the company was cutting its executive team by 30 per cent, and deferring or cancelling almost $700m in expected capital expenditure. ‘‘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,’’ he said.