Government Eyes Funding Tweak for Regional Carriers

Associate Transport Minister James Meager considers modifying infrastructure funding as Air Chathams slashes flight schedules due to soaring jet fuel costs.

By: AXL Media

Published: Apr 10, 2026, 5:43 AM EDT

Source: RNZ Pacific

Air Chathams Slashes Schedules to Survive

The urgency follows an announcement from Air Chathams that it will significantly reduce its North Island flight schedules later this month. The airline plans to cut flights into Whakatāne by 45%, Whanganui by 22%, and Kāpiti by 10%. Chief Executive Duane Emeny stated that the reductions are a necessary measure to ensure the company can cover its direct operating costs. While North Island routes are being thinned, the airline’s vital sole-provider service to the Chatham Islands remains unchanged for now, a situation Meager described as a "unique set of circumstances" that makes a strong case for government intervention.

$30 Million Loan Pool and Regulatory Relief

The government is currently processing applications for a $30 million loan pool designed for regional airlines. Golden Bay Air has already received an allocation, and Meager anticipates that the remaining funds will be drained within the next few weeks as other carriers’ applications are finalized. Beyond direct financial aid, the Associate Minister mentioned several "levers" the government could pull, including:

Suspending interest on concessionary loans.

Deferring loan payments to ease immediate cash flow issues.