Scott Morrison reiterated that repatriation flights from India will continue after the temporary ban expires on 15 May.
The federal government announced it would cover the full $66 million necessary after previously only committing to a proportion of the funding.
The country’s COVID response minister, Chris Hipkins, said it wasn’t a decision taken lightly, and New Zealand could lift the temporary ban early.
Chair Rod Sims said the deal would “undermine competition significantly” because it would make it too difficult for another airline to challenge on selected routes.
The union's request came after the flag carrier revealed it received incentives from states including payroll tax relief, marketing funding and direct incentives.
The business appeared to reiterate ultra-long-haul flights between New York, London and Australia was a matter of when, not if, stating it would launch once international travel recovers.