Sounds Air Downsizes Despite NZ Gov’t Loan Plan
The New Zealand government has unveiled a loan package of up to NZD30 million (USD17.6 million) to support struggling regional airlines, but the relief has come too late for Sounds Air, which has already begun downsizing operations.
The loans, administered by the regional development unit Kānoa, will provide concessionary financing for leasing, maintenance, and debt restructuring to help smaller carriers cope with rising costs and post-pandemic challenges. Announced on September 1, the programme aims to preserve regional connectivity and prevent further service cuts.
However, Sounds Air managing director Andrew Crawford expressed frustration, telling local media the support arrived “too late.” He said the airline had spent years appealing for assistance without success and was already forced to cancel routes, including Wanaka services, and sell aircraft. Earlier in July 2025, Sounds Air confirmed it would withdraw from Christchurch-Blenheim and Christchurch-Wanaka routes and sell its six Pilatus PC-12s due to cost pressures and exchange rate challenges, resulting in ten redundancies. The carrier will now focus on Cook Strait operations using its Cessna C208 Caravans.
Regional Development Minister Shane Jones stressed the importance of supporting small carriers, warning that once fleet capacity and routes are lost, restoring them is costly and difficult. The New Zealand Airports Association welcomed the government’s move, noting that rising costs and financing challenges have already pushed airlines to sell aircraft abroad.
Alongside the loans, the government also approved funding for digital upgrades to enable interlining between regional and major carriers, simplifying bookings and baggage handling for passengers.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com