Regional airlines struggling with soaring fuel costs will receive a $5.7 million Government lifeline to help keep essential routes operating.
Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced the funding boost this morning, acknowledging airlines were facing increasing financial pressure.
Jones said jet fuel and aviation gas prices had climbed by more than 50% since March, adding to the pressures faced by operators providing “much-needed regional connectivity”.
“These are extraordinary times, with regional airlines having to navigate a period of ongoing challenges,” Jones said.
The $5.7 million will come from the Regional Infrastructure Fund, with individual grants ranging from $300,000 to $1.2m.
Allocations will be based on annual passenger numbers and flight movements.
Meager said the grants would support day-to-day costs such as fuel and wages, with the airlines expected to maintain their current service levels.
“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.”
Jones stressed the support was temporary, targeted and proportionate.
“This funding will help maintain service levels and preserve essential regional routes that might otherwise be vulnerable.”
The funding will be drawn from the remainder of a $30 million regional air connectivity package established in 2025 to support vulnerable air services.
The Government has already provided nearly $26m in loans through the package for aircraft acquisition or leasing, fleet maintenance and debt refinancing.
Air Chathams received the largest loan, with $17.2m approved to refinance debt, followed by the Blenheim-based Sounds Air with $4.5m for fleet upgrades and debt refinancing.
Other airlines to receive loans included Sunair ($2.08m), Stewart Island Flights ($640,000) and Island Air ($252,000).
The Government said the previous loans were intended to support aircraft purchases or leasing, fleet maintenance and debt refinancing.
In late February, Golden Bay Air was announced as the recipient of a $1.1 million loan.
Source: NZ Herald
No comments:
Post a Comment