The future of Air New Zealand is back in the news, with a suggestion that the drawn-out nature of its discussions with the government could mean a significant restructure is on the cards.

The airline is continuing to burn through cash during Covid-19, and needs a solution soon.

Analyst David Mackenzie, who recently served as the chairman of Christchurch International Airport, says Air New Zealand needs to come out of this pandemic financially strong.

However, he told Heather du Plessis-Allan that it is “unusual” that the discussions over the loan is taking so long.

“Why hasn’t it gone to the market yet?”

Mackenzie says that it is unclear if the Government wants a larger stake, but it wouldn't be surprising if that was the case

"Something must be going on as the Government made the loan so expensive, it's also as though it's a holding operation as they wait the outcome of some sort of review."

LISTEN ABOVE