Air NZ moving head office to Auckland Airport to cut costs

Air New Zealand will relocate its head office to Auckland Airport, leaving the central city.

The company has announced it will refurbish its airport campus and build a new 10,000sq/m hangar at the site.

The airline said the move will centralise its operation, future-proof its infrastructure and reduce property costs.

The majority of the company's staff are based in Auckland and those based at its existing Fanshawe Street head office are expected to move to the airport in 2024.

Air NZ chief executive Greg Foran said it has spent the past two years looking at how it can set itself up for success.

"We know we work best when we work together and we have plenty of under-utilised space at the airport campus to make that happen," said Foran.

"We'll be creating an environment where the people who plan our future work alongside those who operate our aircraft and work with our customers every day.

"Globally, this way of working is delivering exceptional results for customers and shareholders, and this is the right time to get ready for a move as we prepare for the global recovery in aviation."

Foran said the company has more space than it needed in the Auckland central city and was already paying for a precinct at the airport that had more than enough room.

"With building costs increasing and our CBD leases coming to an end, this is the time to get started on the work to bring our people together," he said.

Moving the city office to the airport would cut costs by 20 percent over 15 years, the airline said.

It said the office's lease will end in 2027 and it's exploring sub-lease options.

The new engineering facility - called Hangar 4 - was first announced in 2019 and will be the largest single span timber arch aircraft hangar in the Southern Hemisphere, Air NZ said.

It would also be sustainable, with a six-star green rating.

"We're confident that our long-haul operation will return so investing now in a new hangar that will be large enough to house a 787 and two A320s side-by-side in one space makes complete sense.

"Our existing hangars were built in the 1960s and 1980s and, while they have served us well, our fleet has changed over the decades. We now have a need for a more modern, innovative structure that takes energy use and other sustainability factors into account," Foran said.

Construction of the hangar will begin this year.