Air New Zealand is laying off 387 pilots as part of a wider move to reduce its workforce by at least 3750 to make it through the coronavirus pandemic.

Like most airlines around the world, Air New Zealand has been hammered by the deadly coronavirus outbreak due to demand for air travel falling off a cliff and governments closing their borders to stop the spread of Covid-19.

The New Zealand Air Line Pilots' Association (NZALPA), which represented 1520 Air New Zealand pilots, said it was told by Air New Zealand that it proposed to make 387 pilots redundant.

​NZALPA president Andrew Ridling said it was deep in negotiations with the airline on Tuesday morning.

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JASON DORDAY/STUFF Air New Zealand aircraft with engines covered parked up at Auckland Airport.

"As we have been working closely with the airline over the past three weeks, NZALPA will continue to negotiate on getting this number reduced and finalising the agreement process."

It is understood an email outlining pilot job losses was sent to staff on Monday evening, and mostly first and second officers were affected.

Ridling said NZALPA would fight to ensure there was a clear and transparent path back to Air New Zealand for all pilots who chose to return.

"NZALPA is adamant that 387 redundancies is not a final number. Now we continue the robust and thorough consultation process required under the Employment Relations Act and our specific collective agreement."

One pilot said people were being let go in order of seniority, with the most recently employed pilots first.

That made it a gamble leaving a job to join Air New Zealand and start at the bottom.

"Our contract allows a return to Air NZ within 10 years, so if the situation improves in the next 10 years then those pilots have to be offered their jobs back, once again in order of seniority."

A lot of pilots had come from other backgrounds, but their skills did not necessarily make them more employable if they had been out of their respective industry for some time.

An Air New Zealand spokeswoman would not comment on pilot redundancies specifically but said it had entered into a consultation process on Monday to reduce the size of the workforce by up to 3500 roles.

"It's expected Air New Zealand will be a much smaller airline for some time even beyond the initial impact of Covid-19," she said.

"We understand that this is a very difficult time for many Air New Zealanders."

In an email sent to staff last week Air New Zealand chief executive Greg Foran said in a year's time the airline's workforce was expected to be at least 30 per cent smaller.

Before the Covid-19 outbreak Air New Zealand had about 12,500 staff worldwide. A 30 per cent headcount reduction equates to about 3750 job losses.

Due to Covid-19 restrictions on travel Air New Zealand has grounded 58 of its 114 aircraft and over the past month and a half has reduced capacity by about 95 per cent.

SUPPLIED NZALPA would fight to ensure there was a path back to Air New Zealand for all pilots who chose to return, said NZALPA president Andrew Ridling.

Last week, Ridling said in the case of redundancies, it's last on, first off.

"Everyone is flying reduced hours, as this means we can all stay current and meet CAA [Civil Aviation Authority] take-off and landing requirements," Ridling said.

The age profile of New Zealand pilots was spread across the board and aviation was an industry based on seniority, he said.

"So the older demographic are captains on wide-body aircraft while newer (younger) pilots come through the turbo prop aircraft and then on to the jet fleets through the ranks as a second officer, first officer and then a captain.

'Many pilots have hefty student loans which they were happy to take out to cover the costs of flight training, knowing they would soon be working and able to make loan repayments.

"Others have huge loans and mortgages, just like everyone else in our community."

Air New Zealand was applying for the Government's Covid-19 wage subsidy which offers $585.80 for people working 20 hours or more per week for up to 12 weeks.

In late March, the Government bailed out Air New Zealand with two loan facilities it could draw on worth a combined total of up to $900m.

The proposed redundancies follow a similar move by Virgin Australia, which on Sunday shut up shop in New Zealand leaving roughly 600 New Zealand-based staff out of work.

NZALPA also has concerns about 127 Qantas pilots and 81 Jetstar pilots losing their jobs.

Virgin Australia chief operations officer Stuart Aggs said the Covid-19 pandemic was the worst crisis the industry had ever faced.

"We regret the impact it has had on all of our people.

"This decision is in no way a reflection of the New Zealand team members who made up the Virgin Australia Group, and we wish them all the very best for their future."

Virgin Australia had announced a temporary suspension of all international flying, including New Zealand.

It intended to recommence services when viable to do so, he said.