allowed the airline to challenge Air New Zealand on Trans Tasman and Pacific Island routes. Boeing offered to buy back NAC's three original 737 models as trade-ins to help purchase costs and approached NAC with the then proposed B757/767 family, opening up new markets. McDonnell Douglas also joined in with a DC-10 offer to NAC, re-igniting the merger debate within the New Zealand Government. In the end, it was Air New Zealand that was threatened by the domestic market airline and the government acted. Merger On 1 April 1978, after thirty-one years in operation, NAC merged with Air New Zealand to form the domestic arm of the airline. The highly unpopular decision to join the airline with Air New Zealand was inevitable; with full deregulation of the commercial aviation industry in New Zealand was still eight years away. The NAC fleet at the time of merger consisted of 26 aircraft: The Godwit tail livery was hurriedly covered over with a hybrid Air New Zealand title and Koru tail scheme still using the two-tone orange NAC final colours. Small Godwit symbols were placed beneath the cockpit side windows as a link to the past. These survived into the full repainted Teal Blue era, but by the 1990s they had been painted out. See also List of defunct airlines of New Zealand History of aviation in New Zealand References Further reading External links Air New Zealand Airlines disestablished in 1978 Airlines established in 1947 Defunct airlines of New Zealand Government-owned companies of New Zealand 1978 mergers and acquisitions 1978 disestablishments in New Zealand Companies based in Wellington New Zealand companies established in 1947 New Zealand design