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

Three regional airlines—Air Chathams, Sounds Air, and Island Air—will receive loans from the $30 million Regional Infrastructure Fund to refinance debt, upgrade fleets, and maintain essential air services connecting remote communities. Regional Development Minister Shane Jones and Associate Transport Minister James Meager emphasize the importance of these airlines for regional connectivity, economic wellbeing, and access to healthcare, especially amid pressures from rising fuel costs and global uncertainties. The government is also considering temporarily adjusting loan conditions to support airlines further and continues to assess additional funding applications.