Air New Zealand says it's committed to maintaining regional connections, despite the Government turning down its offer. 

CEO Nikhil Ravishankar last week pitched a temporary subsidy for lesser used domestic flights, saying it might be necessary to keep them operational. 

But Prime Minister Chris Luxon says a subsidy isn't the answer, and Air New Zealand should shift its focus.

Ravishankar says it still isn't planning to leave the regions. 

"We know that it is a lot more than a commercial decision, it's a lifeline service at times. And we will do everything we can and everything we should be doing to ensure that connectivity remains."

LISTEN ABOVE