Air New Zealand originated in 1940 as Tasman Empire Airways Limited (TEAL), a flying boat company operating trans-Tasman flights between New Zealand and Australia. TEAL became wholly owned by the New Zealand government in 1965, whereupon it was renamed Air New Zealand. The airline mainly served international routes until 1978, when the government merged it and the domestic-orientated New Zealand National Airways Corporation (NAC) into a single airline under the Air New Zealand name. Air New Zealand was largely privatised in 1989, but returned to majority government ownership in 2001 after a failed tie up with Australian carrier Ansett Australia (when Ansett suffered financial issues and folded operations during that year). As of 2008, Air New Zealand carries 11.7 million passengers annually.[8]