Aviation News Item: 00600

29th Jun 2009

Source: ubmaviationnews.com

Air New Zealand (ANZ) is to end its contracts with Qantas Engineering & Maintenance for line maintenance services in Sydney and Melbourne, according to a Dow Jones Newswire report. In future, the airline's aircraft will be serviced by Cathay Pacific's line maintenance subsidiary in Sydney, and by John Holland Group in Melbourne. The move has been associated with enduring difficulties after a strike among Qantas engineers in July 2008. As a result ANZ had to send its own MRO personnel to Australia to ensure sufficient MRO capacities, and is reportedly seeking compensation from the Australian flag carrier. However, a report in The Sydney Morning Herald suggests that Qantas had markedly increased its prices for certain ground services, arguably to encourage client airlines to end their contracts with Qantas as well as to outsource certain areas of its own ground services to third-party providers. ANZ will continue to use Qantas line maintenance services in Adelaide and Perth.

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