The city of Wellington could benefit from extra flights to Australia if a merger is allowed between Air New Zealand and Virgin Blue.
The two airlines have sought approval to work together in order to compete with the current Qantas-Jetstar group that operates on the same route.
However, a draft decision from the Australian Competition and Consumers Commission rejected the merger on the basis that it could be anti-competitive.
Air New Zealand was named as 2010 Airline of the Year by the Air Transport World magazine awards and handles around 12 million passengers each year.
Written by Erin Marshall.