Safe Air Plans To Cut Back Workforce
March 1st, 2010Safe Air in Blenheim, which is an engineering subsidiary of Air New Zealand, is planning to reduce its workforce by up to 100 positions—almost a third of the company’s total workforce.
The staff reduction has become necessary because of extensive delays by Canadian companies in delivering the first of the RNZAF’s upgraded C-130s. Initially, it was intended that the first of the Air Force’s Hercules would be upgraded in Canada and that Safe Air would complete the remaining four aircraft in New Zealand after the first aircraft returned. A second Hercules was eventually sent to Canada in the hope of hastening the upgrade process, but without success.
When the contract (with SPAR Aerospace) for the first upgrade was announced in 2005, Safe Air increased its workforce and invested in equipment and facilities in expectation of its first aircraft arriving in August 2008.
On the 21st of December 2009, SPAR notified Safe Air of an indefinite postponement to the programme. SPAR Aerospace has recently gone out of business and been taken over by L-3 Communications, which is continuing to work on the two aircraft. The Ministry of Defence deputy secretary for acquisitions Des Ashton said the delays would not add to the original budget for the five aircraft, but he added that it might be another three or four months before the problems with the software were ironed out and the two upgraded aircraft were fully operational.
The delays—which have nothing to do with Safe Air—are all related to software incorporated in the upgrade, which also includes: structural refurbishments, such as the replacement of the centre wing; major avionics modifications, including a new glass flight deck; navigation and communication suites, and night vision.
Air New Zealand has been working with the RNZAF and the government to find ways to minimise the number of job losses. In addition, the Marlborough District Council had been trying for more than a year to help Safe Air find other projects in case the contract fell through according to Marlborough’s mayor, Alistair Sowman.
The Minister of Defence, Wayne Mapp, has said it is possible that Safe Air might be given other Air Force work: “The Air Force has some ability to bring some standard maintenance on other aircraft forward. And we’ll see if that can at least save some jobs.”
According to Mr Mapp, the government was considering “legal remedies” against L-3 over the delay in delivering the aircraft to Safe Air.
