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Local Government New Zealand says the Government’s decision to throw a funding lifeline to small passenger airlines is a great outcome for rural and provincial communities.
The Government has announced it will support at-risk regional air routes with up to $30 million in concessionary loans for small passenger airlines, sourced from the Regional Infrastructure Fund. The loans aim to stabilise the sector and support regional routes in the short to medium term, by providing targeted relief for things such as aircraft leasing, maintenance and debt refinancing.
LGNZ provincial sector chair Neil Holdom says rural and provincial councils view strong regional connectivity through air, land and sea as a critical part of their infrastructure.
“We welcome this announcement. It’s something that councils and Mayors across New Zealand have called for many times over the years,” says Neil.
“Local government relies on aviation connectivity to help maintain its regional buoyancy; it’s not something that communities could afford to lose and there’s no doubt the industry needed this lifeline.
“Their services have a positive effect on regional development, linking regions together, and boosting the economic and social wellbeing of regional New Zealand.
“We support any announcement that helps alleviate the funding pressures faced by these critical service providers.”
