Source: New Zealand Government
The Coalition Government continues to back regional air services with an investment in Bay of Plenty-based Sunair, Regional Development Minister Shane Jones and Associate Transport Minister James Meager say.
The Regional Infrastructure Fund (RIF) loan of $2.08 million to Sunair will go towards the potential acquisition of two new aircraft, essential fleet maintenance, and the refinancing of existing debt.
“Airlines such as Sunair are a critical part of the economic and social fabric of our regions,” Mr Jones says.
“They are enablers of business activity and economic growth, facilitate access to education and health services, boost tourism, and enhance community wellbeing and resilience.
“This loan means Sunair can improve efficiency and be better positioned to expand services in the future if the demand is there. It’s meaningful and timely relief in this difficult operating environment,” Mr Jones says.
The new larger aircraft proposed to be added to Sunair’s fleet will increase passenger capacity, provide greater operational flexibility, and reduce reliance on its existing fleet of six-seaters.
The loan to Sunair is part of the $30 million regional air connectivity package developed in 2025 to support vulnerable regional air services.
Sunair currently provides air services to the upper half of the North Island across Northland, Waikato, Bay of Plenty, Coromandel, Tairāwhiti and Hawke’s Bay, with many of its routes not served by other airlines.
“This loan boosts the resilience of the aviation network across these regions by preserving routes that may not be viable for larger operators but remain important for regional connectivity,” Mr Meager says.
“For the communities and businesses in towns like Wairoa, Whitianga or Whakatāne, having access to Sunair services can be a vital lifeline.”
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
Original source: https://nz.mil-osi.com/2026/09/28/government-backs-bop-regional-aviation/