Government backs regional airline Air Napier
The Government is continuing its support for regional air services, with Regional Development Minister Shane Jones and Associate Transport Minister James Meager announcing an $845,000 loan to Hawke’s Bay airline Air Napier.
The Regional Infrastructure Fund (RIF) loan will help Air Napier undertake essential upgrades to its fleet and refinance some existing debt.
Air Napier plays an important role in supporting businesses across Hawke’s Bay and Tairāwhiti, and helping people access essential services, Mr Jones says.
For decades, it has provided flights for Hastings-based doctors and nurses travelling to and from Wairoa, saving hours of road travel and helping ensure local communities can access vital healthcare.
The loan is from the remainder of the Government’s $30 million regional air connectivity package, established in 2025 to support vulnerable regional air services. Air Napier is the final airline to receive support through the package.
Regional airlines are critical to the economic success of our regions, Mr Meager says.
They support tourism, trade and business activity, while also helping maintain essential services during emergencies and civil defence responses.
During Cyclone Gabrielle, Air Napier helped transport civil defence personnel, medical staff, patients, and urgent supplies, including medicines, up and down the East Coast.
Mr Meager says regional airlines continue to face significant cost pressures in a challenging operating environment.
The Government recognises the important role these airlines play in connecting regional communities. That is why we have continued to support the sector, including through the recent announcement of $5.7 million in grants to help meet day-to-day operating costs.
Editors’ note For more information on the regional air connectivity RIF package, see Government backing vital regional connectivity | Beehive.govt.nz.
The following loans have been provided to date: Air Chathams – $17.2m to refinance debt Sounds Air – $4.5m to upgrade its fleet and refinance debt Island Air – $252,000 for fleet maintenance Golden Bay Air – $1.1m to refinance debt and fund essential ongoing maintenance Stewart Island Flights – $640,000 for aircraft refurbishment Sunair – $2.08 million for potential aircraft acquisition, fleet maintenance, and debt refinancing