Regional airlines funding

Up to $30 million in loans was made available from the Regional Infrastructure Fund (RIF) to support regional airlines and safeguard essential air services across New Zealand. Separate grant funding was also available to enable interlining between regional airlines and major carriers, and to support airlines’ working capital needs.   

Find out more about the RIF decision-making process

Loans

Regional airlines support access to essential services, tourism and trade, and strengthen local economies. The funding was introduced to help address rising costs, supply chain disruptions and limited access to affordable capital, which were putting pressure on the viability of regional routes.

The RIF funding supports regional airlines to manage debt, maintain aircraft and continue operating vulnerable routes that are vital to the wellbeing, resilience and economies of regional communities. 

Applications opened in September 2025 and closed at the end of 2025. 

The following loans were provided to:

  • Air Chathams – $17.2 million 
  • Sounds Air – $4.5 million 
  • Island Air – $252,000 
  • Golden Bay Air – $1.1 million 
  • Stewart Island Flights – $640,000
  • Sunair – $2.08 million 
  • Air Napier – $845,000 

Read the announcements on the Beehive website

Government backing vital regional connectivity — Beehive.govt.nz
Government support for regional air routes takes flight — Beehive.govt.nz
Regional airlines supported by RIF funding — Beehive.govt.nz 
Stewart Island air service boosted by RIF loan — Beehive.govt.nz
Government backs BOP regional aviation — Beehive.govt.nz
Government backs regional airline Air Napier — Beehive.govt.nz

Interlining grants

Interlining allows passengers to book multi-leg journeys on a single ticket, helping improve regional connectivity and providing a smoother customer experience. 

This one-off funding supported initial interlining integration costs. Airlines were invited directly to apply.

A grant of $465,000 has been made to support the interlining partnership between Air Chathams and Air New Zealand.

Read the announcement on the Beehive website

RIF funding boosts Chatham Islands connections — Beehive.govt.nz

Working capital grants

An additional $5.7 million was provided to support airlines to access grants for working capital, including day-to-day costs such as fuel and wages.   

Read the announcement on the Beehive website

Working capital grants for regional airlines — Beehive.govt.nz