Ms Watson allegedly replied: "Curiosity, do you know how to spell it?", before apologising to the captain and chief purser on the flight.
Emirates complained about the incident and Air NZ launched a disciplinary investigation.
Air NZ said she was partly responsible for her flight being 36 minutes late, spoke sarcastically to an Emirates ground representative and breached security protocol, which all were factors in her dismissal.
But Ms Watson argued she left the area as soon as she was told she could not go on the Emirates plane.
She has launched a personal grievance case against her former employer with the Employment Relations Authority (ERA).
In a report released today the ERA said her application would be referred to a member of the ERA to proceed with arrangements for an investigation.
Air NZ said because the matter was still to be before the authority it would be inappropriate to comment.