The New Zealand Government has announced another range of loans for regional carriers across New Zealand, with Air Chathams, Sounds Air and Islands Air the latest recipients, joining Golden Bay Air.
The money comes from the Regional Infrastructure Fund, which will be used to refinance debt.
“We’ll be working through what this means over the coming weeks, but it’s a really encouraging step forward, and one that comes at the right time,” it states.
Sounds Air will receive $4.5 million, and the carrier says that will be used to assist with its avionic upgrades and debt refinancing, helping maintain fleet capability and supporting ongoing operations across its network.
Island Air, which connects Tauranga and Motiti Island, will be granted $252,000 for fleet maintenance. Associate Transport Minister James Meager 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,” he says.
“Many of these airlines provide essential services and are often the most efficient way for locals to access specialist health care, connect with family, and do business.”
Regional Development Minister Shane Jones acknowledges the impact of the Middle East crises on regional carriers.
He says the government has listened to concerns from regional operators and has 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,” Jones says.
