Busy day at airports as Qantas passengers try to get home

6.00 pm

Air New Zealand domestic terminals throughout the country were kept busy today, trying to cope with 7000 passengers left stranded by defunct Qantas New Zealand.

Qantas New Zealand went into receivership on Saturday morning and all of the domestic airline's flights were cancelled.

Air New Zealand added around 20 extra flights to its Sunday schedule, after agreeing to honour all Qantas New Zealand tickets.

The airline used a larger 767 aeroplane to fly six flights today, freeing up the 737 it usually uses for main trunk flights to make an additional eight flights.

Meanwhile Economic Development Minister Jim Anderton has said the Government is working to help set up a new airline.

Mr Anderton said the Government has been considering potential alternatives.

"We have told Qantas Australia that we will do everything we can on a level-playing field basis to help to bring its replacement aircraft to New Zealand."

He said the development of the New Zealand economy, and particularly the tourism sector, make it vital that a second airline operates here.

National's transport spokesperson Belinda Vernon said that Cabinet must take decisive action to ensure the airline's collapse does not spell the end of competition in the domestic air market.

"The benefits of competition over the last 14 years have been huge. The onus is on the Government to pull out all the stops to ensure those benefits are not lost."