Regional airlines and the NZ Airports Association have jointly welcomed the government’s regional air connectivity announcement as a turning point for New Zealand’s regional aviation network.
The government has announced $30 million in concessionary loans for regional airlines and further funding to support interline capability to strengthen links between smaller carriers and the national network.
Regional airlines operate over 600 flights per week and are the only reliable and frequent transport to some parts of New Zealand. Regional air routes connect communities with jobs, healthcare, tourism, and emergency services. For decades, these services have been sustained without government support – an unusual achievement compared with other countries, where subsidies are standard for regional and remote communities.
“We are fortunate that New Zealand’s regional aviation network has sustained itself commercially for so long,” says NZ Airports Chief Executive Billie Moore. “But the long tail of COVID, rising operating and maintenance costs, and the less favourable finance terms available to smaller airlines have changed the equation. In many cases it is now more attractive for operators to sell their aircraft into the international market than to continue running services in New Zealand. Despite this, regional airlines want to keep flying and serving their communities.”
NZ Airports, Air Chathams, Sounds Air, Barrier Air and Origin Air have worked over the past 12 months to analyse the issues in the regional air transport system and develop policy options for the government to consider.
“Ministers Jones and Meager should be commended for taking action. Along with Minister Patterson, they dedicated time and effort to understand the complexities of regional aviation and its importance to New Zealand’s economy and social fabric.,” Moore said.
The package will help to address two of the sector’s most pressing needs: stabilising the network now and creating the conditions for future growth.
“It is important to note that this support comes after some routes have already been lost. The challenge now is to stabilise the system, prevent further losses where possible, and put regional air connectivity back on a path to growth,” Moore added. “This investment is modest and won’t fix every challenge, but it will help these dedicated operators start to turn things around.”
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