Government Grants $22 Million to Support New Zealand Regional Airlines and Connectivity

Three more regional airlines will receive Regional Infrastructure Fund loans to help support regional air routes and safeguard essential air services, Regional Development Minister Shane Jones and Associate Transport Minister James Meager say.

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, Mr Jones says.

Regional connectivity is vital to New Zealand’s economic and social wellbeing, but the industry is under pressure, with some crucial routes at risk. That is why we have taken action to help stabilise the sector in the short to medium term, Mr Meager says.

The three airlines receiving funding from $30 million ring-fenced in the Regional infrastructure Fund are: Air Chathams – $17.2m to refinance debt. The airline connects Auckland, Whakatāne, Whanganui, Kāpiti, Wellington, Christchurch, Chatham Islands and Pitt Island Sounds Air – $4.5m 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 Many of these airlines provide essential services and are the often most efficient way for locals to access specialist health care, connect with family, and do business, Mr Meager says.

In places like the Chatham Islands, regional airlines are the sole connector for residents to the mainland. Losing those routes would risk people being cut off from the rest of the country and disruption to the delivery of essential services.

Mr Jones says the regional airlines funding package was created in late 2025, several months prior to the current Middle East conflict.

The impact on fuel supply and pricing has had ramifications across the world, including in the aviation sector. The situation in New Zealand is no different.

The Government acknowledges it is now an even more challenging commercial environment for regional airlines, and there is uncertainty about the future.

We’ve listened to concerns from regional operators and have requested advice from officials regarding the potential for temporarily adjusting loan conditions to help regional airlines meet their obligations in adverse conditions. We expect to be able to speak more about this in coming weeks, Mr Jones says.

Kānoa, the Regional Economic Development & Investment Unit, is continuing to progress applications for support from other airlines. The Government announced the first loan, to Golden Bay Air, in February.