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No, domestic business class was scrapped in New Zealand in 2002 for a single class service (although the front half of domestic A320s is in the Space + configuration, with 3-5 inches more legroom, available to NZ Gold/Elite frequent flyers, Koru Club members and Star Alliance Gold status holders).
Great question. I don't know the answer to that but it does get you lounge access so I suspect it should give you access to better seats.If you book a business class seat from International do you get to select the better seats?