Government allocates $5.7 million to support regional airline operating costs

The government is committing $5.7 million from the Regional Infrastructure Fund to provide working-capital grants to regional airlines facing heightened operating expenses, particularly due to a more than 50 percent rise in jet fuel and aviation gas prices since March. Shane Jones described the assistance as temporary, targeted and proportionate, aimed at preserving essential connections for remote communities. Grants will be allocated according to annual passenger numbers and flight movements, with individual awards between $300,000 and $1.2 million.

James Meager emphasized that the funding is expected to maintain existing service levels over the coming year. This follows earlier government support of nearly $26 million in loans for aircraft acquisition, leasing, fleet maintenance and debt refinancing, which has already benefited operators such as Air Chathams, Stewart Island Flights and Golden Bay Air.