"The club will now work with the relevant authorities in New Zealand, the NRL Integrity Unit and the RLPA to investigate the incident thoroughly. This process will then guide our next steps.
"The club will make no further comment until the investigation is completed."
A witness told Stuff Terepo had started drinking in the airport lounge before taking it with him on to the plane in a coffee cup.
Terepo allegedly refused to hand the cup over to Air New Zealand staff when asked.
"He threatened the air hostesses that his lawyer would be contacting them because they were wrong," the witness told Stuff.
"He was loud and disruptive during the safety briefing and I was surprised I could hear myself think while he was yelling across the aisle to a mate.
"The (flight) manager asked him to stop drinking but he continued to do so, arguing with the manager.
"He was read out a warning, he continued to talk over the manager and was told that police authorities would meet him upon landing.
"He continued to drink his alcohol in his coffee cup and the manager had to snatch a larger spirit bottle from him."
Terepo also allegedly made inappropriate comments to a female flight attendant.
It's not the first time Terepo has been suspended by the club. In 2017, the prop was fined A$15,000 (NZ$15,500) for failing to disclose he has been convicted of careless driving while in New Zealand.