Well I haven't flown the other NZ airlines in quite some time. Though from what I have heard the the other NZ also refund when they cancel (outside of 1 in 100 year pandemics). But AirNZ is basically a monopoly, so really they drive the NZ public sentiment. Sure there was JQ but the sentiment was "friends don't let friends fly JQ".

The Eu and US have had issues with their domestic carriers (intra Europe) and that placed the pressure/need for law. NZ doesn't have that pressure. So long as AirNZ doesn't change their T&Cs I don't see the pressure going on the Govt. As the Govt isn't going to enact law for a non existent problem. The Air Travel problems which the public see is the perceived high cost of flights to the regions, followed by the Aussie border related taxes and fees.

Look at the US they have to have rules that have to let the people off the plane if on ground for more than X hours, because it is such a regular problem. Sure there are issues when planes divert to OHA but that is border reasons as to why they can't get off the plane and is only once or twice a year. And if dropped OHA may make flying to NZ more difficult as CHC is that bit further and need more fuel and then end up with issues when need two alternates, as Wellington can't handled A380s (and would still have to sit on the ground for the border staff to arrive as they are not generally at the airport at the time of the morning fog diversions)

Outside of the pandemic, what cases would it help with? Every cancellation I have had (and those of friends) have been given the option for another flight or refund. (yes mostly AirNZ because NZ based but that does include other airlines).

Also NZ is small fry and relies on tourism as an export earner. Would this law help or hinder airlines operating to NZ? Would airlines raise prices to cover their increased costs? (may make AirNZ look better as they already cover refunds) or just put NZ in the too hard basket? The US and the EU is of a size that can't just ignore the market.

I just don't see a need for law that wouldn't change things and if done poorly could negatively affect the aviation market in NZ.

Outside of the Pandemic would have a NZ version of DOT or 261, helped you in anyway? I am thinking back and can't think of any for me.