Air New Zealand will create about 30 new engineering jobs at Air Nelson by shifting maintenance work on Mt Cook Airline planes from Christchurch to Nelson.
The airline says employees set to lose jobs at its Safe Air subsidiary will have the opporunity to apply for the new jobs in Nelson.
A further eight jobs will be created in Christchurch as new contracts are secured.
While Air New Zealand's Christchurch base is the Australasian leader in narrow body jet maintenance, technical operations general manager, Trevor Hughes says the company has had to turn down work from other airlines because of capacity constraints.
A move to Nelson means that the company can take on more work.