As Qantas unions brace themselves for a similar ultimatum in Australia, Air NZ said an additional 507 positions at its engineering services unit would be axed and the work would go to a big operator in Europe.
The losses are in addition to 110 announced in December.
The airline had stipulated that workers in Christchurch and Auckland must support the deal.
While it was supported by Auckland-based members of both Air NZ maintenance unions, it was rejected by members of the Aviation and Marine Engineers Association based in Christchurch. Union officials said the Christchurch workers had yet to be convinced "of the radical change being asked of them to their working and family lives".
The news came as Australian engineers yesterday urged the Howard Government not to change the Qantas Sales Act when it considers its aviation policy review today.
The Australian Licensed Aircraft Engineers Association (ALAEA) warned that any decision by Qantas to move valuable jobs offshore would be a blow to Australia's skills base that could affect its defence preparedness.
Qantas has warned it could move at least 2500 widebody heavy maintenance jobs offshore unless it can get costs savings of up to 20 per cent.
"With maintenance of military aircraft increasingly contracted outside the defence force, it is important people within the country are learning the skills that can maintain Australia's defences," said ALAEA industrial manager Chris Ryan. "If the Government does not move to protect these skills the situation will be rapidly irreversible."
The ALAEA has also raised safety concerns about the quality of overseas work as well as questions about whether a move to export so many jobs could contravene sections of the Qantas Sales Act requiring the airline to keep the bulk of its operations in Australia.
Qantas argues widebody heavy maintenance is only a fraction of its operations. It has said it has no plans to move other maintenance operations overseas.
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