Issue of Restricted Share Rights

TO Listed Company Relations NZSX Market VIA NZ MAP CC Company Announcements Office Australian Stock Exchange VIA ASX ONLINE FROM Liz Lawless Corporate Legal Services DATE 15 October 2018 NUMBER OF PAGES INCLUDING COVER SHEET One SUBJECT ISSUE OF RESTRICTED SHARE RIGHTS In 2016 Air New Zealand Limited (the Company) adopted a Chief Executive Officer Restricted Share Rights Plan (Plan). The Company advises that it has made a grant of 242,643 restricted share rights under the plan to Christopher Luxon. These restricted share rights were issued on 12 October 2018. Each restricted share right issued under the Plan gives the holder the right to receive one fully paid ordinary share in the Company, subject to the holder remaining employed by the Company on the vesting date. The vesting date for this issue of restricted share rights is 31 December 2019 for 145,586 of the rights and 31 December 2020 for the balance (97,057) of the rights. When considering whether to issue restricted share rights under the Plan in respect of a financial year, the Board will assess the Chief Executive Officer's performance against the individual objectives set for that financial year. Future issues of restricted share rights will be considered on an annual basis. The Plan is expected to continue through to the financial year ending 30 June 2020. End CA:00325321 For:AIR Type:SECISSUE Time:2018-10-15 16:50:00