I don't believe that clause would apply. There is no Government restriction on AirNZ flying anywhere.

AirNZ (acting in the best interests of their shareholders rather than customers which is fair enough) have understandably made a commercial decision to not fly the suspended routes given the extreme drop in demand. It's a commercial decision by an operator right now, not a Government mandate.

AirNZ also seem to have decided to try and keep money they have not earnt by refusing refunds for a service they were paid for but choose not to perform, an interesting position to take (for customers and the concepts of loyalty and fairness) but again certainly in their shareholder interests.

Thats not to say insurance companies would not try and wiggle out later on if airlines go into administration in a few months time. I've made claim on our travel insurer tonight for flights that are now suspended and that AirNZ say they won't refund only credit and it must be used within 12 months.

I must say also I think AirNZ under the Consumer Guarantee act are required to refund as they are (understandably) unwilling to provide the service contracted.

I would hope they choose reason over litigation to resolve.