Air New Zealand has aligned itself with a troubled Hollywood actress currently under house arrest for theft.

Airlines on both sides of the Tasman are crying foul over rumours as passengers battle disruption caused by a volcanic ash cloud.

Rob Fyfe has hit back at "malicious rumours" out of Australia that Air NZ has grounded ash-damaged aircraft.

Industry sources are warning that the volcanic ash cloud's impact on the tourism sector will be serious if the disruptions continue much longer.

Qantas hopes 350 - or five per cent - of its cabin crew will take up voluntary redundancy.

To infinity and beyond ... Kiwi ingenuity is alive and well and flying a jetpack 5000 feet above sea level.

The High Court in Auckland has ordered Qantas Airways to pay a $6.5 million penalty for breaches of the Commerce Act.