Air New Zealand

The Queenstown Lakes District Council has called an extraordinary meeting, to be held behind closed doors tomorrow, to discuss "airport litigation - notice of motion".

A New Zealand coroner has decided against opening a full inquest into the deaths of five Air New Zealand crew in a crash in France, instead accepting a French inquiry's rulings.

Air New Zealand, which has been critical of the proposed strategic alliance between Queenstown and Auckland airports, intends forging ahead with a request for a High Court judicial review of the process.

More than $60,000 has been spent by the Queenstown Lakes District Council in legal fees and litigation costs between January 1 and February 28 over the controversial strategic alliance between Queenstown and Auckland Airports.

New Zealand's tourism outlook will come under close scrutiny in the weeks ahead as the extent of the destruction in Japan becomes apparent, with Air New Zealand moving quickly yesterday to announce a profit downgrade.

Shares in Air New Zealand fell 7.5 percent in early trading, after the company said it no longer expected to be profitable in the second half of its financial year.

Air New Zealand reported a 75% rise in half-year net profit to $98 million, as passenger numbers, cargo volumes and yields all increased from a year earlier.

Proposed changes to the future operation of Wanaka Airport have drawn disapproval from Air New Zealand, which, as the country's dominant airline, wants consultation privileges.

Air New Zealand has signed a code share agreement with Etihad Airways, the national airline of the United Arab Emirates.

The Air New Zealand shareholding and alliance with Virgin Blue has received the tick of approval from brokers and Moody's Investors Service, with brokers picking more good news to follow.

A shareholding in Virgin Blue gave Air New Zealand access to a much larger population in a way that did not require a large capital outlay, New Zealand Funds Management chief investment officer Michael Lang said yesterday.

Air New Zealand is taking its relationship with Virgin Blue up a notch, saying it has become a substantial shareholder in the Australian-based airline it is forming a trans-Tasman alliance with.

The approval yesterday for the Air New Zealand-Virgin Blue transtasman alliance was one of several factors contributing to a positive 2011 for the national carrier, Forsyth Barr broker Peter Young said.

Air New Zealand has earned a tick of approval from brokers after updating the market on fuel statistics and traffic statistics.