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Three additional regional airlines will receive Regional Infrastructure Fund loans aimed at supporting air routes and protecting essential services to smaller communities.
Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced the funding package, which comes from $30 million ring-fenced for regional aviation support.
The latest recipients are:
Air Chathams – $17.2 million to refinance debt. The airline operates services linking Auckland, Whakatāne, Whanganui, Kāpiti, Wellington, Christchurch, the Chatham Islands and Pitt Island.
Sounds Air – $4.5 million to upgrade its fleet and refinance debt. The airline connects Wellington, Picton, Kāpiti, Blenheim and Nelson.
Island Air – $252,000 for fleet maintenance. The airline connects Tauranga and Motiti Island.
The Government previously announced a loan to Golden Bay Air in February.
Connectivity under pressure
Jones says the loans will help operators manage debt, maintain fleets and continue flying routes important to regional economies and communities.
“These loans will help regional passenger airlines manage debt, maintain their fleets, and continue operating the routes important for the wellbeing, resilience and economies of regional communities.”
Meager says regional connectivity remains critical to New Zealand’s social and economic wellbeing.
“Regional connectivity is vital to New Zealand’s economic and social wellbeing, but the industry is under pressure, with some crucial routes at risk.”
He says many of the airlines provide key links for healthcare access, family travel and business activity.
“In places like the Chatham Islands, regional airlines are the sole connector for residents to the mainland.”
Fuel costs add pressure
Jones says the support package was developed in late 2025, before the current Middle East conflict added further pressure to global fuel supply and pricing.
“The Government acknowledges it is now an even more challenging commercial environment for regional airlines, and there is uncertainty about the future.”
He says officials have been asked to provide advice on temporarily adjusting loan conditions to help airlines meet obligations during adverse trading conditions.
Applications from other airlines are still being assessed by Kānoa – Regional Economic Development & Investment Unit.
