Air Chathams has welcomed the Government’s announcement of a $17.2 million Regional Infrastructure Loan, saying the support comes at a critical time for regional aviation and the communities it serves.
The airline said the loan would help strengthen the resilience of essential air services across Aotearoa, as regional operators continue to face significant operational pressure, including elevated fuel costs, supply chain challenges and limited access to affordable capital. The funding forms part of the Government’s wider Regional Infrastructure Fund support for regional airlines, with up to $30 million in loans set aside to help safeguard essential air services across New Zealand. According to the Government’s Grow Regions platform, the funding is designed to help regional carriers manage debt, maintain aircraft and continue operating vulnerable routes that support communities, tourism, trade and local economies.
Air Chathams said its leadership team would now work through the detail of the loan and assess how best to allocate the funding to maximise its long-term impact. The carrier said its focus would remain on keeping regional communities connected for travel, business, healthcare and essential services.
“This greatly appreciated support acknowledges the long-standing challenges all airlines face in connecting our regions,” said Air Chathams CEO Duane Emeny.
The announcement follows a difficult period for regional aviation in New Zealand. Earlier this month, Air Chathams confirmed planned reductions on some North Island regional services, with reported frequency cuts into Whakatāne, Whanganui and Kāpiti as higher fuel costs placed pressure on route economics.