Air New Zealand originated in 1940 as Tasman Empire Airways Limited (TEAL), a company operating trans-Tasman flights between New Zealand and Australia. TEAL became wholly owned by the New Zealand Government in 1965, whereupon it was renamed Air New Zealand. The airline served international routes until 1978, when the government merged it and the domestic New Zealand National Airways Corporation (NAC) into a single airline under the Air New Zealand name. Air New Zealand was privatised in 1989, but returned to majority government ownership in 2001 after near bankruptcy due to a failed tie up with Australian carrier Ansett Australia. In the 2017 financial year to June, Air New Zealand carried 15.95 million passengers.