However if fare purchased in New Zealand and not for Business purposes surely there would be a case under CGA. If purchased for Business it would be likely that the Disputes Tribunal would be somewhat sympathetic to the customer for a claim up to $15k. I don’t imagine that Air NZ would want a test case or the negative publicity. IMHO from a reputational point of view they should have frontfooted the situation with a more transparent press release//explanation and considered a refund of fares paid for that flight.

Having said that they probably realise that they may well be exposed to claims and or actions from insurers. We may never know if out of court settlements are made but generally insurers like to determine liability.