New Zealand’s Air Chathams Welcomes Loans, Seeks More Support

Air Chathams has welcomed the New Zealand government’s new NZD30 million (USD17.6 million) loan package to support struggling regional carriers but warned that further measures may be needed to safeguard essential air links.

Whakatāne mayor Victor Luca praised the initiative but argued it falls short of what is required to protect the town’s only air connection to Auckland, currently operated by Air Chathams. He suggested that part of Air New Zealand’s annual profits could be redirected to co-fund regional subsidies. “A subsidy of NZD1 million to Air Chathams from Air New Zealand’s profits would represent only 0.2% of the airline’s last annual profit,” Luca said, pointing to the flag carrier’s NZD412 million earnings in 2022-2023.

Air Chathams had earlier warned it might suspend the Whakatāne-Auckland service by year-end after sustained losses since 2023. The airline had requested local council support, including loan forgiveness and airport fee waivers, but only received a six-month reprieve on airport charges.

Chief executive Duane Emeny welcomed digital upgrades funded under the loan programme, which will enable passengers to book combined itineraries on regional and mainline airlines. He confirmed that Air Chathams is in talks with Air New Zealand on a potential interline agreement, which could expand booking options, add lounge access, and introduce frequent flyer benefits for regional travelers.

The loan package, administered through the regional infrastructure fund, also supports other small carriers such as Sounds Air, Barrier Air, and Originair, which continue to operate at a loss to maintain critical connectivity for isolated communities.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com