NZ Council Rejects Air Chathams Support for Whakatāne Route
New Zealand’s Whakatāne District Council has declined multiple funding and support requests from Air Chathams for its Auckland-Whakatāne route. During a meeting on May 8, 2025, Mayor Victor Luca said the council would only waive landing fees for six months, rejecting all other proposals.
Air Chathams had asked the council to forgive a NZD350,000 (USD207,000) loan, waive landing fees for 12 months with a possible extension, enter a profit and loss sharing agreement for the route, and offer a new NZD3.2 million (USD1.9 million) loan to acquire an aircraft. The airline later withdrew the aircraft loan request after a planned aircraft sale failed.
Council records note that over the past decade, Whakatāne District has supported Air Chathams with loans, promotional initiatives, operational fee relief, and marketing assistance.
In April 2025, Air Chathams warned it may pull out of the route, having incurred losses of over NZD1 million (USD590,000) since April 2023. Currently, the airline operates twice-daily weekday roundtrips and one Sunday roundtrip between Whakatāne and Auckland using Saab 340A aircraft, according to ch-aviation data.
Radio New Zealand reported the council unanimously rejected the proposed profit and loss sharing arrangement and the new loan. Some councillors suggested converting the existing loan into equity, while others proposed a repayment plan.
Mayor Luca emphasized the council’s public service role, stating, “We are not an airline… it should be central government that steps in with support.”
The council also plans to seek expressions of interest for alternative air services to Auckland and Wellington.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com