The Government's $885 million bailout of national carrier Air New Zealand was completed today, giving the Crown an 82 per cent stake, Finance Minister Michael Cullen announced.

The transaction followed Air NZ shareholders' approval last month of the $885 million re-capitalisation programme, he said.

The programme was in two parts - a $300 million loan and a $585 million investment. The loan was by way of 1.25 billion convertible preference shares at 24c each and the investment by 2.167 billion ordinary shares at an issue price of 27cps.

As well, a further 29.866 million convertible preference shares had been issued for interest on the loan.