'Not enough cash in the bank' for refunds - Air NZ boss

Air New Zealand chief executive Greg Foran has told Checkpoint refunding all customers for cancelled flights would ground the airline for good.

The national carrier is losing $5 million a day and is bracing for potentially more job losses saying it needs to slash $150 million more from its wage bill.

It has already ditched 4,000 jobs with some employees taking a 30 percent cut in pay.

The company has had more than $70 million from the government wage subsidy scheme but says it will need to rely on the second round of subsidies for millions more.

Last April it carried 1.4 million passengers. This April it was just 15,000.

It is also taking a hammering from many customers unhappy that they are being offered credits instead of refunds.

But the airline says it simply does not have the financial reserves to refund everyone.

Chief executive Greg Foran speaks to Lisa Owen.

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