Regional Development Minister, Shane Jones, has announced $5.7 million in funding from the Regional Infrastructure Fund (RIF) to help regional airlines manage the operating pressures facing the sector.
The Minister confirmed the funding will be made available for working capital grants for regional airlines.
“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% since March, have created problems for the operators providing much-needed regional connectivity,” Mr Jones says.
“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 $26 million 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,” said Associate Transport Minister, James Meager.
“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.”
For more information on the regional air connectivity RIF package, see Government backing vital regional connectivity | Beehive.govt.nz.
