Aviation Industry Association of New Zealand chief executive Simon Wallace has welcomed the Government’s first loan to a regional airline under the Regional Infrastructure Fund, describing it as an encouraging sign that ministers are following through on commitments to support regional aviation.
The loan, announced this week for Golden Bay Air, is the first disbursement from the fund, which is administered by Kānoa and aimed at supporting at‑risk regional routes.
Simon said regional air services play a critical role well beyond passenger transport, providing essential connectivity for social services, emergency response, and disaster relief, particularly in isolated communities.
“It’s really great that the Government is following through on its commitment to support regional airlines,” he said.
However, Simon said the announcement should be followed by further and timely decisions to support other operators and protect additional critical routes.
“What we want to see now is we want some further announcements around supporting other operators and other critical routes.”
He said the sense of urgency was real, with airlines facing mounting financial pressure from rising fuel prices, levies, maintenance costs, and escalating capital expenses — pressures echoed across the regional aviation sector.
Wallace emphasised that the loans were not subsidies, but a necessary mechanism to help airlines manage essential costs in a challenging economic environment.
“The airlines are not asking for a subsidy or a handout and nor should they get that,” he said.
“The reality of this economy we’re dealing with is they need this money now.”
He said operators would primarily use the funding for essential maintenance, major checks, and aircraft upkeep, all of which are vital to maintaining safety and operational reliability.
The comments come amid broader concern within the sector about what industry leaders have described as “insidious” and ongoing cost increases, including higher Civil Aviation Authority levies, landing fees, fuel costs, and sharply rising engine and maintenance prices.
Simon said ensuring the long‑term viability of regional air routes was essential not only for passengers, but also for freight movement, healthcare access, emergency services, and regional economic resilience — particularly when road access is disrupted by severe weather events.
AIANZ continues to work with government agencies, airlines, and airports to advocate for targeted, practical support that helps stabilise the regional network while maintaining strong safety and operational standards.