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Golden Bay Air will be the first airline to receive a loan from funding earmarked for at-risk regional air routes, Associate Transport Minister James Meager has announced.
The airline will receive approximately $1.1 million from the $30 million package set aside through the Regional Infrastructure Fund to stabilise the sector and support regional routes in the short to medium term.
Meager says the loan will enable Golden Bay Air to refinance existing aircraft debt and fund essential major maintenance checks.
“This targeted relief will support it to maintain flights from Tākaka to Nelson, Karamea and Wellington.
“The airline moves freight and supports essential access to health care and emergency services when Tākaka Hill Road is cut off during severe weather events. It also provides an important tourism link for visitors accessing the Heaphy and Abel Tasman tracks,” says Meager.
He says the funding will improve operational reliability and strengthen economic resilience for the remote region.
West Coast-Tasman MP Maureen Pugh says the support provides certainty for Golden Bay.
“Ensuring the viability and connectivity of Golden Bay is vital for such an isolated community. This loan funding gives certainty to the tourism sector, helping build their future,” says Pugh.
Fund administrator Kānoa has received several loan applications from other airlines and is working to allocate the remaining funds.
The package also includes additional funding to help regional airlines integrate bookings with larger carriers through interlining, allowing passengers to book multi-leg journeys on a single ticket.
“This initiative has the potential to strengthen the commercial sustainability of regional airlines and support regional connectivity,” says Meager.
Airlines will be invited to apply for the interlining funding in the coming weeks.
