New Government plan to support regional airlines services announced

Tuesday, 16 September 2025

Air Chathams chief executive Duane Emeny says concessionary loans the industry had been asking for will allow the industry to at least maintain what it has.

A new aviation plan to support struggling regional air services will tackle the challenges facing aviation, the Government announced on Tuesday.

The plan, unveiled by Associate Transport Minister James Meager at the annual Aviation Industry Association conference in Wellington calls for 25 actions to grow and future-proof the aviation sector.

“Aviation is vital to New Zealand’s economic prosperity and our way of life,” Meager said.

The plan was a roadmap to tackle the challenges facing aviation and would ensure will ensure the sector continues to support trade, tourism, regional connectivity and economic growth, he said.

Meager said the action plan would be led by the industry through the Interim Aviation Council, in partnership with the Government.

The council would rework civil aviation rules to promote growth and innovation, including providing better support for the development of emerging technologies such as drones and uncrewed aircraft, he said.

It would also be required to find ways to speed up regulatory decision-making, reducing certification wait times and automating routine tasks.

As well, it would develop a plan to tackle workforce issues, including by updating the pilot and engineer training pipelines, promoting aviation careers, and progressing international mutual recognition of licences where appropriate.

Passengers’ consumer rights would be strengthened and greater accessibility for disabled travellers, Meager said.

Aviation Industry Association chief executive Simon Wallace said the plan provided a long-awaited pathway to growth and transformation of the industry.

Regional airlines have said they were struggling under the weight of massive cost increases, including maintenance and regulatory costs.

Cook Strait airline Sounds Air recently announced it would sell its fleet of six Pilatus PC-12 aircraft because the routes they flew on were no longer viable.

Earlier this month the Government announced $30 million in concessionary loans for struggling small airlines to secure vulnerable regional routes and providing investment for interlining arrangements. The loans would come from the Regional Infrastructure Fund.

Sounds Air is selling its fleet of nine-seater PC-12 pressurised aircraft to return to its roots flying its core Cook Strait network with its remaining fleet of Cessna Caravans.

Air Chathams chief executive Duane Emeny said at the time concessionary loans the industry had been asking for would provide the circuit breaker to allow the industry to at least maintain what it had.

Wallace welcomed planned regulatory reform of the industry’s “to create a more streamlined, safe and efficient system that supported the industry”. The current system was outdated “with a plethora of time-consuming rules and processes”, he said.

Especially encouraging was the promise of policy change to address systemic issues with pilot training that were contributing to pilot shortages.

“We hope this will lead to lifting the outdated student loan cap that is the main barrier to aspiring young New Zealanders entering the workforce as they are unable to borrow to cover their tuition fees,” he said.

The plan also included long-term steps to continue building momentum, including establishment of the Aviation Council as a permanent body.

A system-wide first principles funding review of the Civil Aviation Authority had already begun.

“It is encouraging that the plan will review the Civil Aviation Authority’s funding model by June 2027. We hope this will also result in a regular process of reassessing the fees and levies that are a constant financial strain on the industry,” Wallace said.

RNZAF Base Ohakea would also be made available as an alternative runway for wide body aircraft on a permanent basis, under the plan.