The Government wants to see regional routes kept, despite Air New Zealand's poor financial showing.

Some regional flights could be axed or scaled back in response to the company's $40million half-year loss.

Act leader David Seymour has called for the Government to sell its majority shareholding in the airline, which New Zealand  First's Winston Peters calls economic lunacy.

Associate Transport Minister James Meager told Heather du Plessis-Allan that Air New Zealand should consider efficiencies.

He says there are some commercial decisions they could make, and hopes scrapping regional connectivity is not one of them

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