As part of a major cost-cutting exercise dubbed "Project Save", Air New Zealand is believed to be considering consolidating its two wholly owned regional subsidiaries and transferring some of their central management functions to the parent company.
Attention is focusing on "Air NZ Link"-branded subsidiaries Air Nelson and Eagle Airways, which compete with each other on some routes. Air Nelson has a fleet of Saab 340s, and both also operate Fairchild Metros. Air New Zealand's other regional subsidiary, Mount Cook Airline, in which it holds a 50% stake, seems likely to be left on its own.
Source: Flight International
