The Coalition Government has continued to back regional air services with an investment in Bay of Plenty-based Sunair.
The Regional Infrastructure Fund (RIF) loan of NZD 2.08 million to Sunair will go towards the potential acquisition of two new aircraft, essential fleet maintenance, and the refinancing of existing debt.
Regional Development Minister Shane Jones said that airlines such as Sunair were a critical part of the economic and social fabric of the regions. They enabled business activity and economic growth, facilitated access to education and health services, boosted tourism, and enhanced community wellbeing and resilience.
Jones added that the loan would help Sunair improve efficiency and be better positioned to expand services in the future if demand is there.
“It’s meaningful and timely relief in this difficult operating environment.”
The new larger aircraft proposed to be added to Sunair’s fleet will increase passenger capacity, provide greater operational flexibility, and reduce reliance on its existing fleet of six-seaters.
The loan to Sunair is part of the NZD 30 million regional air connectivity package developed in 2025 to support vulnerable regional air services.
Sunair currently provides air services to the upper half of the North Island across Northland, Waikato, Bay of Plenty, Coromandel, Tairāwhiti and Hawke's Bay, with many of its routes not served by other airlines.
Associate Transport Minister James Meager said that the loan boosts the resilience of the aviation network across these regions by preserving routes that may not be viable for larger operators but remain important for regional connectivity.
“For the communities and businesses in towns like Wairoa, Whitianga or Whakatāne, having access to Sunair services can be a vital lifeline.”
The following loans have been provided to date:
- Air Chathams – NZD 17.2m to refinance debt
- Sounds Air – NZD 4.5m to upgrade its fleet and refinance debt.
- Island Air – NZD 252,000 for fleet maintenance.
- Golden Bay Air – NZD 1.1m to refinance debt and fund essential ongoing maintenance
- Stewart Island Flights – NZD 640,000 for aircraft refurbishment
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