Source: New Zealand Government
The Regional Infrastructure Fund will provide funding to help regional airlines manage the operating pressures facing the sector, Regional Development Minister Shane Jones and Associate Transport Minister James Meager say.
“These are extraordinary times, with regional airlines having to navigate a period of ongoing challenges. Significant pressures, including the price of jet fuel and aviation gas increasing by more than 50 percent since March, have created problems for the operators providing much-needed regional connectivity,” Mr Jones says.
“Ministers have agreed that $5.7 million from the Regional Infrastructure Fund (RIF) will be made available for working capital grants for regional airlines.
“I want to emphasise that this support is temporary, targeted and proportionate. This funding will help maintain service levels and preserve essential regional routes that might otherwise be vulnerable.
“We are providing realistic, practical support so regional airlines can maintain essential connections for remote and regional communities, giving people in those areas access to specialist health care, family, and business opportunities.”
The working capital grants will come from the remainder of the RIF-funded regional air connectivity package set up in 2025 to support vulnerable regional air services. The Government has provided nearly $26m in loans to date for aircraft acquisition or leasing, fleet maintenance and debt refinancing.
The working capital funding allocations will be based on airlines’ annual passenger volumes and flight movements, with grants ranging from $300,000 to $1.2 million depending on the scale of the airline’s operation.
“These grants for day-to-day costs such as fuel and wages are being provided with an expectation the airlines will maintain their current service levels, as was the case with loans from the regional air connectivity package,” Mr Meager says.
“This support will provide some financial relief over the next 12 months and demonstrates the commitment of the Government to the regions, to their airlines, communities and businesses.”
Editors’ note
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
- Sunair – $2.08m for new aircraft, fleet maintenance, and debt refinancing.
For more information on the regional air connectivity RIF package, see Government backing vital regional connectivity | Beehive.govt.nz
Original source: https://nz.mil-osi.com/2026/10/05/working-capital-grants-for-regional-airlines/