Air New Zealand has confirmed it will apply for wage subsidy for its staff with the global coronavirus pandemic severely affecting its operations.
In a statement, the airline said, "we are very grateful that the Government introduced the subsidy however the wage subsidy only prevents the requirement for the airline to make even deeper cuts."
The news comes after the Government earlier announced a rescue package of a loan of up to nearly $1 billion.
The rescue package announced on March 20 is a loan agreement of up to $900 million over the next 24 months. It will be repaid at a commercial rate of seven to nine per cent.
Today, E tū union organiser Rachel Mackintosh told 1 NEWS, Air New Zealand had an opportunity with the wage subsidy to "put things on hold" and keep people in work.
"Anything that keeps people in work for longer is worth it and it also gives an opportunity for people to really engage in the discussion and try and find creative solutions to save as many jobs as possible," she said.
"It's much better than being unemployed, you know, it's not unemployment it's a possibility. It puts things on hold, it's a possibility to look long term, to talk to the company about long term plans about what a good national carrier will look like in the future.
"They really need an engaged staff if they're going to recover, they just really do."
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