In the meantime, NAC's early piston-engined aircraft such as the DC3, were replaced by turbo-props, and in 1968 the jet age for domestic aviation was ushered in by the Boeing 737.
Thirteen years after TEAL was renamed Air New Zealand, Air New Zealand and NAC merged in April 1978, forming the first New Zealand carrier to offer both international and domestic services.
Tragedy struck Air New Zealand on November 28th 1979 when a DC 10 on a sightseeing flight to Antarctica crashed into Mt Erebus, resulting in the loss of all 257 passengers and crew onboard. The tragedy deeply affected New Zealand and everyone that worked at the airline.
In April 1989, the New Zealand Government privatisation of Air New Zealand was completed through the outright sale of the company for NZ$660 million, to a consortium comprising of Brierley Investments, Qantas, Japan Airlines and American Airlines. Air New Zealand shares were listed on the New Zealand Stock Exchange as "A" shares (could only be held by New Zealand nationals) in October 1989 and "B" shares (no restriction on nationality of ownership) in December 1991.
During the 1980s and 1990s Air New Zealand continued to expand its international network, particularly to Asian cities like Taipei, Nagoya, Osaka and Fukuoka.