Air New Zealand (NZ, Auckland International) will close its MRO base in Hamilton, NZ with effect from late May of this year with 12 staff set to be posted to other locations within the company's shrinking domestic network.

According to the Sunday Star Times, this closure is the latest to affect Air New Zealand's domestic operations which has seen engineers withdrawn from Blenheim, Napier/Hastings, and Invercargill over the past 12 months (seven of the eight affected staff have found new jobs elsewhere in the company).

Air New Zealand's General Manager (Regional Airlines), Kel Duff, has said the closures are a result of a restructuring plan wherein the airline has sought to consolidate its maintenance services in locations where aircraft are most likely to be parked up overnight.

"Hamilton is the last port in this process. We have 12 engineers currently based in Hamilton and have been consulting with them for some time – including offering the option to take up employment in another port," he told the newspaper.

Duff pointed out that despite the closure of smaller bases, Air New Zealand still maintained a large fleet of ATR - Avions de Transport Régional (operated by Mount Cook Airline) and Bombardier Aerospace Q300s (operated by Air Nelson) in Nelson, NZ, making the region a significant hub for engineering.

"The maintenance base employs more than 170 highly skilled staff and brings in millions of dollars of investment to Nelson. We also have around 30 staff dedicated to regional maintenance based in Auckland."

As part of the rationalization plan, Air New Zealand has also terminated flights to Westport, Whakatane, Kaitaia and, earlier this month, Paraparaumu. And it has also axed select routes to Palmerston North, Taupo, Hamilton, NZ, and Whangarei.