Government backs regional airlines with $30m
Published: 1 September, 2025
The Government will support at risk regional airlines with up to $30 million in loans from the Regional Infrastructure Fund (RIF).
Reliable air services are critical for the economic and social wellbeing of regional New Zealand. They enable access to healthcare, education, business, and whānau, particularly in areas where alternative transport options are limited.
Small regional carriers are under pressure from rising costs, limited access to capital, and ongoing post-COVID disruptions. Without this support, some communities risk losing vital air links.
The funding will be administered by Kānoa through concessionary loans from the RIF to help smaller regional passenger airlines with aircraft leasing, maintenance, and debt refinancing.
The aim is to stabilise the sector and protect regional routes in the short to medium term, not to meet all their capital needs but to provide targeted relief. The funding could be used to replace or lease aircraft, purchase components and spare parts, or refinance existing debt.
Without intervention, regional airlines could face further service cuts or a complete withdrawal from routes, as has been seen in some regions around the country. Once fleet capacity is lost, recovery can be difficult and costly.
The funding is a one-off, modest but meaningful intervention that will help prevent further service loss. Alongside this, the Government has also approved funding to support digital upgrades that integrate regional transport bookings with the platforms of major carriers.
The loans will be administered through Kānoa. For more information on making an application: