Finance Minister Bill English has confirmed the Government is considering taking control of part of Safe Air's business responsible for upgrading Air Force Hercules.
However, the Government says it is not looking at taking over the aircraft maintenance company.
The issue has arisen because Safe Air no longer wants to do the upgrade of the planes, following a dispute with main contractor L3 Communications, based in the United States.
Three Hercules still need to be upgraded and at the moment work on those has ground to a halt.
Mr English says one of the options to ensure the upgrade is completed is for the Government to take over Safe Air's workforce and facilities responsible for the work.
