Bay of Plenty airline Sunair will receive a $2.08 million Government loan to help fund new aircraft, maintain its fleet and refinance debt.
Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced the funding today.
Their media release said the investment would help secure regional air services across the upper North Island.
The loan, through the Government’s Regional Infrastructure Fund, could be used to acquire two larger aircraft, essential maintenance work and to refinance debt.
Jones said Sunair played an important role in connecting regional communities.
“Airlines such as Sunair are a critical part of the economic and social fabric of our regions,” he said.
He said regional air services helped businesses grow, improved access to health and education services, supported tourism and strengthened community resilience.
The proposed addition of larger aircraft would increase passenger capacity and operational flexibility, and reduce the airline’s reliance on its current fleet of six-seat planes.
Tauranga-headquartered Sunair operates flights throughout the upper North Island, serving destinations across Northland, Waikato, Bay of Plenty, Coromandel, Tairāwhiti and Hawke’s Bay. Many of its routes are not served by other airlines.
Meager said the funding would help preserve regional connections that might not be commercially viable for larger operators.
“For the communities and businesses in towns like Wairoa, Whitianga or Whakatāne, having access to Sunair services can be a vital lifeline.”
The loan forms part of a $30 million regional air connectivity package established in 2025 to support vulnerable regional aviation services.
Other regional carriers supported through the programme included Air Chathams, Sounds Air, Island Air, Golden Bay Air and Stewart Island Flights.
The funding comes less than a year after Sunair was cleared to resume flying after being grounded for more than four months.
The Civil Aviation Authority restored the airline’s certification in November after concerns about aircraft maintenance and safety led to a 10-day suspension that was extended.
Sunair owner Dan Power said he was “pleased” to have the application for RIF funding approved.
“This will allow us to capitalise the business sufficiently to continue to service the regions of Bay of Plenty, Eastland, Waikato, Coromandel and Northland.”
Power said cost pressures since Covid and the “sluggish” economy had made it challenging to offer affordable air transport.
“The availability of this funding shows a commitment by the coalition Government to support regional New Zealand with the connectivity required for regional growth.”
He said the funds would be allocated to aircraft fleet upgrades, enabling increased all-weather capability and reliability.
“Sunair has offered regional air transport around the upper North Island for 35 years, and looks forward to continuing.”
Source: Bay of Plenty Times
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