Air NZ chief executive Gary Toomey has criticised the decision of the Australian Civil Aviation Safety Authority (CASA) to ground subsidiary Ansett's fleet of 767s.
Mr Toomey, who is in Melbourne today trying to solve the crisis, says the airline is being punished for its honesty in identifying and reporting potential problems.
CASA ordered Australia's second largest airline to ground its 10 Boeing 767 aircraft on Thursday, and prove by May 4 that its planes were safe or lose its licence.
CASA inspectors began examining the first of the grounded Ansett planes last night, with the first inspection, including detailed reviews of the airline's maintenance records, expected to take a few days to complete.
A total of 37,000 people are booked to fly Ansett today. The airline has chartered several international aircraft Air New Zealand, Air Canada, Emirates and Singapore Airlines to help ensure minimal disruption to travellers.
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