12:38pm

The government has revealed another three regional airlines set to receive Regional Investment Funding loans amid the fuel crisis.


Ministers have also signalled conditions for the loans may be softened.


Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced a $17.2 million loan for Air Chathams, $4.5m for
Sounds Air - which flies between Wellington, Kapiti, Picton and Nelson - and $252,000 for Island Air operating Tauranga to Motiti Island.


They follow Golden Bay Air receiving $1.1 million in the first loan announced in February.


About $7 million remains in the ring-fenced funding set aside for supporting regional airlines.


Jones said the funding would help the airlines with managing debt,
maintaining fleets and continuing to operate routes providing regional connectivity.


"The government acknowledges it is now an even more challenging commercial environment for regional airlines, and there is uncertainty about the
future," he said.


"We've listened to concerns from regional operators and have requested advice from officials regarding the potential for temporarily adjusting loan conditions to help regional airlines meet their obligations in adverse conditions."


Meager said for places like the Chatham Islands, regional airlines were the "sole connector for residents to the mainland"


"Losing those routes would risk people being cut off from the rest of the country and disruption to the delivery of essential services."

The fund was set up in late 2025, before the United States and Israel
conflict with Iran.


rnz.co.nz

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