NEW CHAIRMAN APPOINTED:

"Air New Zealand announces the election of Mr John Palmer as its Chairman following his appointment to the Board yesterday.

The appointment fills the casual vacancy for a B Director on the Air New Zealand Board which has existed since the Board composition changed on 4 October 2001. The appointment has been approved by the Crown as required by the Heads of Agreement.

Mr Palmer currently serves on a number of boards and is Chairman of Wrightson Limited, a position he has held since July 1998. He is Chairman of Saxton Fruit Ltd and Nelson Fruit Services Ltd. His directorships include AMP Bank Ltd and he has been on the Advisory Board of AMP New Zealand since October 1996. Mr Palmer’s past experience includes Chairmanship of Trustbank Canterbury Limited followed by Chairmanship of Community Trusts Investments Limited, a holding company which consolidated the interests of eight diverse trusts as part of the development of Trust Bank New Zealand Ltd. Mr Palmer was integral in the public float process for Trust Bank New Zealand Ltd in 1994 and its subsequent sale to Westpac in 1996.

A new strategic direction for the kiwifruit industry was introduced under Mr Palmer’s Chairmanship of the New Zealand Kiwifruit Marketing Board including the successful establishment of Zespri International Ltd which he chaired until 1997.

Welcoming the appointment, the former Acting Chairman, Dr Jim Farmer said, Mr Palmer’s track record demonstrates strong leadership skills and will bring to the Company considerable experience in changing management structures which will be valuable in the rapidly changing environment of the aviation industry.”