The government will provide up to $900 million in loans to Air New Zealand to cushion the impact of the Covid-19 virus.
The airline will be able to call on the loan if its cash reserves fall below certain levels over the next two years.
The government will have the ability to turn the loan into shares in the airline
The company is also cancelling an 11 cents a share worth $123 million.
Finance Minister Grant Robertson is holding a press conference at 9.20am on the government’s move to protect the airline.
Meanwhile, the Reserve Bank of New Zealand has announced a range of measures including term loans to banks, agreement with the US Federal Reserve to access up to US$30 billion and intervening in markets to maintain stability.