Winston Peters says the "last thing we should do is go and panic" and make a classic mistake "based on blind ideology" in response to Air New Zealand's financial loss.
The ACT party is questioning whether the government should retain its majority share in the company, as the Prime Minister signals the potential for a conversation about asset sales in this year's election.
But the New Zealand First leader said "politicians should know what they're talking about" before suggesting a sale.
On Thursday, David Seymour floated the idea after the company posted a bottom-line loss of $40 million in the six months to December.
"Get woke, go broke," he said, "We hear about electric planes, glossy reports on climate change, paper cups in the Koru lounge. What they can't seem to do is take off and land on time."
National carrier posted a loss before tax of $59 million, citing ongoing volatility, global engine maintenance impacts and a slow recovery in domestic demand. (Source: 1News)
The Prime Minister brushed off questions about it, saying there would be no asset sales this political term.
But New Zealand First has long opposed selling off state-owned assets.
Speaking to Morning Report, Peters fired shots at his coalition partner and Air New Zealand management along with rubbishing Seymour's comments about selling the airline.
"This sort of ideological extremism is of no value to a country that is trying to rebuild itself.
"And let's be honest about this, they're [Air New Zealand] are in the slipstream of the Covid pandemic."
He said the airline was operating in a difficult market and demanded to know, "who on earth would sell" at the current share price.
On the question of subsidies to ensure an affordable service, particular for the regions, Peters said the "right people" in charge would deliver it.
"If you're not running something properly, get some proper management... make sure they understand that there's added value for New Zealand in every sense, that tourism is going to be benefitting from it and ensure that the provinces that keep this country alive get a fair deal.
"There's a fair bit of woke going on there, they had you know, the waka in the sky and all that PR rubbish. And all people want to know is: Are you going to be pricing us fair? And are you going to leave on time?
"So yes, they can do better, but the idea of selling it in this market - well who on earth would advise that?"
Peters believed Air New Zealand's shares should be invested in a future fund, rather than being sold.
He said the government's shares should be invested, to get better value for taxpayers.
Peters wanted the fund to be politically independent, similar to the Singaporean sovereign wealth fund model.
Peters took to social media to acknowledge Air New Zealand needed to start being on-time and reducing regional costs, but said calls to sell shares when the airline market was in a downturn were "economic lunacy".
He pointed out airlines were struggling worldwide, partly because there were not enough engines for the aircraft. He said no one had said anything about selling the airline when it had posted a profit.
"Sometimes there's a downturn, but we can get on top of it.
"We should not go back to the foolishness of Labour and National selling off assets in the past."
Peters said the added value of Air New Zealand being "owned by us" went to taxpayers and the New Zealand economy.
If it was owned internationally, that value would go to a foreign economy and New Zealand would be used as a place for "economic exploitation".
"It's clear as daylight.
"The former CEO warned us of this two years ago, so politicians should know what they're talking about."
He said it was a conversation for the upcoming election.
Labour's finance spokesperson Barbara Edmonds also rejected the idea of selling the airline.
She acknowledged performance mattered and the board must be accountable for that, "but a short term loss doesn't actually justify selling a strategic asset and a really key part of New Zealand's infrastructure".
"The real taxpayer risk would be losing control of regional routes and international connectivity if ownership shifted offshore."
She also challenged the Deputy Prime Minister to explain to regional communities how selling it would guarantee connections for their region.
The Greens co-leader Chlöe Swarbrick said asset sales were the very reason New Zealanders' bills were so high, and that privatisation enriched shareholders at the expense of everyday people.
"That's when profit comes first - passengers, workers, and regional accessibility comes last."
She said the Greens had always believed assets built by New Zealanders should remain in public hands.
"The co-Deputy Prime Minister is currently selling more of the poison as though it were the medicine."
What do New Zealanders think?
RNZ spoke to people in Wellington on Thursday evening in the after-work rush hour.
- "I think it's important that we have an airline that works well for our country. We need to be able to get around."
- "As a consumer, it's disappointing that they have such high air prices. I think there's some fundamental issues around that. It's a tough business, but privatising isn't something that I personally or politically would ever want to see happen with an asset like that."
- "It's our national airline, so probably it makes sense to keep it because we really can't afford for it to go under, can we?"
- "I do love flying Air New Zealand. It's a great airline!"
- "We've got to hold on to it. We've sold a lot, and it's not really been of benefit. It's a short term solution."
- "It depends on who's gonna own it, right? I don't really want someone who doesn't give a shit about the environment, and will just keep charging high prices for flights."
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