Regional airlines funding

These loans are now available to help regional airlines manage debt, maintain aircraft, and continue operating vulnerable routes that are vital to the wellbeing, resilience, and economies of regional communities.

Air connectivity enables access to essential services, supports tourism and trade, and strengthens local economies. However, smaller airlines are facing rising costs, supply chain disruptions, and limited access to affordable capital – all of which are putting pressure on the viability of regional routes.

The regional airlines RIF funding will help stabilise existing routes and prevent further withdrawals that could leave communities isolated.

Kānoa is now accepting applications for concessionary loans from the RIF. These loans are available to support capital investments and debt refinancing for eligible regional airlines.

Kānoa has contacted all eligible airlines directly and provided the necessary documentation. More information on the application process is available here:

Applying for the Regional Infrastructure Fund

We encourage applicants to begin preparing and submitting their documentation as soon as possible. Kānoa will work closely with applicants to ensure a timely assessment and release of funding.

Funding pool

$30 million total, allocated proportionally by airline scale. 

What can be funded

• Aircraft acquisition or leasing.
• Procurement of essential components.
• Debt refinancing on more favourable terms.

Who can apply

Eligible applicants must:

• be a scheduled regional passenger airline operating in New Zealand
• demonstrate genuine financial need and a clear case for support
• show sound governance and long-term financial viability and
• commit to maintaining current service levels for the duration of support.

Application window

Open now and closing late December 2025. Applications will be assessed promptly on submission of adequate information. Ministers will begin making decisions before the application window closes, so early submission is strongly encouraged.

Decision-making process

Five ministers are responsible for approving all funding. These ministers are:

• Hon Nicola Willis – Minister of Finance
• Hon Tama Potaka – Minister for Māori Development
• Hon Simon Watts – Minister of Local Government
• Hon Shane Jones – Minister for Regional Development
• Hon James Meager – Minister of Transport (Aviation).

The ministers typically meet monthly to consider proposals that are considered investment-ready.

Assessment framework

Financial need

Applicants must demonstrate genuine financial pressure and limited access to affordable debt capital from conventional sources, as well as the capacity to return to viability and repay the RIF loan.

Public value

Applicant must demonstrate that services provide public benefit, particularly for communities with limited transport alternatives.

Service continuity

Applicant must demonstrate a credible pathway to maintaining its current routes and services during and beyond the support period, acknowledging current market constraints.

Operational capacity

Applicant must have the operational capability to deliver services reliably.

Sound governance

Applicant must demonstrate effective governance and operational oversight.

Loan terms

Cabinet has agreed to provide concessionary debt to regional airlines to offer meaningful relief on cost pressures, while ensuring responsible use of public funds. Loan terms will be considered on a case-by-case basis and tailored to meet the needs and circumstances of each applicant.