(Reuters) – Air New Zealand Ltd plans to centralize operations in Auckland, and relocate its workers in Auckland to a refurbished campus airport campus. The airline stated Wednesday that it will also reduce costs by a fifth in 15 years.

New Zealand’s Flag carrier, New Zealand Air, is planning to make the move in 2024. This follows two years of tightening international border regulations at home.

Greg Foran, chief executive officer of the company said that there is more room than needed in Auckland’s CBD and they have already paid for an airport precinct with more than enough space to support our ambitious growth goals.

Foran explained that Foran made the decision due to increasing building costs, and because the CBD leases of the company were ending.

Air New Zealand said that it will build a new hangar at Auckland Airport this year in response to a rise in long-haul demand and the removal of COVID-19 restrictions.