AIR New Zealand will centralise operations in Auckland and move its workforce in the city to a refurbished airport campus, the airline said on Wednesday (Apr 27), adding that the decision will help it cut costs by a fifth over 15 years.

The move, expected to occur in 2024, comes as New Zealand's flag carrier looks to reduce property costs while aiming for an uptick in business after 2 years of hard-line international border restrictions at home.

"We have more space than we need in the Auckland central business district (CBD) and are already paying for a precinct at the airport that has more than enough space to meet even our most ambitious growth projections," said chief executive officer Greg Foran.

Foran added that the decision was taken due to rising building costs and as the company's CBD leases were coming to an end.

Air New Zealand also said it would begin building a new aircraft hangar at Auckland airport this year as it expects a rebound in demand for its long-haul flights amid easing Covid-19 curbs. REUTERS