Amidst downturn in demand, regional network service is being reviewed by National carrier Air New Zealand.

According to The Dominion Post, the airlines told that the number of passengers for its haul flights has decreased by 3% and is impacting its margins.

The improvement is being considered by the airlines in the way regional airline subsidiaries Eagle Air, Air Nelson and Mount Cook Airline function.

Air New Zealand said that it may mull carrying out maintenance for regional aircraft under one roof to save money and decrease in the amount of time aircraft spends on the ground.

The airlines further said that cost savings are not meant at cutting jobs however it has alerted that if passenger numbers do not pick up smaller towns may lose their service.