The National Party has delivered a sharp message to Government minister Shane Jones to pull his head in over his criticism of Air New Zealand's performance in the regions.
"Attacking public companies is a strange approach to economic development," National's regional economic development spokesman Paul Goldsmith said.
"It's nothing but economic vandalism for political gain. While this may give Mr Jones the attention he craves, this style of politics undermines business confidence and investment that improves the services to the public he says he's concerned about."
Jones, the Minister for Regional Economic Development and Associate Transport, has been highly critical of Air NZ's decision to cut flights to Kapiti and Kaitaia.
He continued his attack this morning, setting his sights on airline chairman Tony Carter.
"Obviously you'd start with the chairman … I'm telling that board, in terms of the growth and connectivity in provincial New Zealand, it will not increase unless that board changes," Jones told Radio NZ.
Jones also warned Air NZ chief executive Christopher Luxon to butt out of politics.
"Do not poke your nose into the political boxing ring unless you're going to resign today and join the ranks of the National Party. This is a legitimate issue on behalf of those provincial areas who have been shortchanged. I've said all along, my focus is on the board."
Following his comments yesterday that Air NZ had put company profit before the regions, Jones said the Air NZ board should look at a different profit model.
"If they are unwilling to adapt the model to deal with the degradation of provincial connectivity in aerial routes, then they're not serving the purpose of the majority shareholder."
His comments have prompted the unusual step of Air NZ to write to shareholding minister Grant Robertson.
"Any appearance of a lack of commercial independence is viewed seriously by the Air New Zealand board and is ultimately potentially damaging to the interests of all shareholders, including the Crown," Air NZ stated.
Robertson said that the Government would consider the board's composition through the normal processes, but added that the Government was committed to improving regional connectivity through building infrastructure such as roads and rail services.
The Government owns 51 per cent of the company and has a say in the composition of the board.
Air NZ will elect new members of the board at the annual general meeting in September, when a third of the seven-person board must resign, but may stand for re-election.
Shareholders only influence commercial operations by electing the board, which has operational independence from shareholders and must adhere to the rules of the NZX.
Prime Minister Jacinda Ardern has said that the Government has no plans to interfere with Air NZ operations, and that Jones' comments were his opinion and not inappropriate.
Luxon returned fire at Jones this morning, saying the airline delivered almost two million more domestic seats and reduced regional airfares 8 per cent over the last three or four years.
"We've got one of the best regional networks of any country on Earth."
His comments prompted a rebuke from Labour MP Kiri Allan, who noted that the airline scrapped its services to Whakatāne.
Luxon said the Crown had the same rights as any other shareholder.
"That doesn't mean they can dictate the operations of the company. They can't use their majority shareholder position to make the company make non-commercial decisions.
"Decision making is with the company board and the Treasury expects all those decisions to be commercial."
The Air NZ board
• Tony Carter, chairman
• Jan Dawson, deputy chair
• Rob Jager
• Linda Jenkinson
• Sir John Key
• Jonathan Mason
• Dame Therese Walsh