Air New Zealand outsourcing work

WELLINGTON, New Zealand, Oct. 19 (UPI) -- Air New Zealand expects to lay off as many as 600 employees next year after outsourcing heavy maintenance jobs.

The cuts are part of the carrier's plan to cut $100 million from operation costs this year, the Wellington Dominion Post reported Wednesday.

Air New Zealand, which faces rising costs and increasing competition, has increased its fuel surcharge four times since May 2004 because of rising jet fuel costs. Fuel expenses comprise about 30 percent of the airline's costs, up from 20 percent a year ago.