Air New Zealand says the decision by one of its companies to take up work with the Saudi military was "poor judgment", and an internal review into how it happened is underway.
The airline has been forced to apologise after it was revealed Air New Zealand's gas turbines unit worked on two engines and one power turbine module from vessels belonging to the Royal Saudi Navy, through a third party contract.
The Saudi military is involved in a campaign in Yemen, where atrocities such as mass starvation and extreme violence are being committed, causing tens of thousands of civilian deaths.
The Finance Minister Grant Robertson says he was surprised and alarmed that a subsidiary of the airline had been doing the work, but says the company's chief executive Greg Foran has apologised.
Foran spoke to Corin Dann.
