If traffic levels fell to the extent that services could not be sustained then and only then will there be plans to ground aircraft or terminate staff employment.

These are the words of Air Pacific Managing Director and Chief Executive, John Campbell when asked how bad the situation would have to be for the airline to start grounding planes and laying off staff.

Campbell said the current loads for Air Pacific are relatively low, averaging mainly in the low 60% range, network wide.

The airline chief executive however said this is against a background of around 14% less flying for the same period twelve months ago.

Last week, airline staff took a 10% paycut for three months while management took a 15% paycut as part of cost cutting measures in the company due to the global financial crisis and devaluation.