Regional airlines funding – applications open soon

The Government is providing up to $30 million in loans from the Regional Infrastructure Fund (RIF) to support regional airlines and safeguard essential air services across New Zealand.

Concessionary loans from the RIF will soon be 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. 

The funding

Up to $30 million in concessionary loans can be applied for:

  • 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.

Charter-only operators, and major carriers like Air New Zealand and Jetstar, are not eligible for funding. 

Applications likely to open end of September 2025

Kānoa is finalising the regional airlines RIF funding application process and eligibility criteria. Application forms will be able to be accessed from the Grow Region’s website at the end of September.

Airlines seeking funding are encouraged to start preparing supporting documentation that demonstrates financial need, governance capability, and service commitment. Once applications open, Kānoa will work to ensure a quick assessment of applications and release of funding.

Applications will be assessed using Kānoa’s investment framework, including robust financial and commercial due diligence, with additional criteria approved by Cabinet to reflect the unique nature of this funding.

Final funding decisions will be made by the Regional Development Ministerial Group, which includes Ministers for Finance, Regional Development, Infrastructure, Māori Development, and Local Government. For the regional airlines RIF funding, decision making will also include the Acting Minister of Transport.