Licensing of commercial air services was adopted in New Zealand initially to foster the development of the aviation industry. Later, licensing was used to control the State's monopoly on domestic air services through the government owned domestic airline, the National Airways Corporation.

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Regular scheduled domestic air services began in New Zealand in the mid 1930's, with airlines operated by private enterprise. In 1945 the government nationalised these services and operated them through a public utility company, the New Zealand National Airways Corporation.

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