KEY POINTS:
Air New Zealand chairman John Palmer says the 76 per cent government ownership has spared the airline from having to constantly "look over its shoulder" as other carriers merge in the tough aviation environment.
"We're constantly looking at both our own operation and the wider international picture. We are seeing a number of mergers taking place between middle to larger carriers," Palmer said.
Outgoing Qantas chief Geoff Dixon earlier this year mentioned Air NZ as a possible takeover target and revived merger speculation on Friday, saying his airline would inevitably merge with another large carrier. Singapore Airlines is a possible suitor.
Air NZ will pay the Government $68 million in dividends for the 2008 year, up $7 million. A special dividend last year netted the Government a further $77 million.
