Support for at-risk regional air routes welcome - LGNZ

Local Government New Zealand (LGNZ) says that the Government’s decision to throw a funding lifeline to small passenger airlines is a great outcome for rural and provincial communities.

The Government announced this morning it will support at risk regional air routes with up to $30 million in concessionary loans for small passenger airlines, sourced from the Regional Infrastructure Fund. The loans aim to stabilise the sector and support regional routes in the short to medium term, by providing targeted relief for things such as aircraft leasing, maintenance and debt refinancing.

LGNZ Provincial Sector Chair Neil Holdom says rural and provincial councils view strong regional connectivity through air, land and sea as a critical part of their infrastructure.

“We welcome this announcement. It’s something that councils and Mayors across New Zealand have called for many times over the years,” says Neil Holdom.

“Local Government relies on aviation connectivity to help maintain its regional buoyancy; it’s not something that communities could afford to lose and there’s no doubt the industry needed this lifeline.

“Their services have a positive effect on regional development, linking regions together, and boosting the economic and social wellbeing of regional New Zealand.

“We support any announcement that helps alleviate the funding pressures faced by these critical service providers.”

Marlborough Mayor Nadine Taylor says that the recent cutting of the Blenheim to Christchurch and Blenheim to Wanaka routes was a blow for the community.

“It’s great to see the Government stepping in. As the Minister pointed out, small airlines – like Sounds Air here in Marlborough – are used as much for healthcare, education and business travel as they are for tourism,” says Mayor Nadine Taylor.

“In our case, regional flights provide a lifeline for Marlborough people to access specialist health care services in Christchurch and Wellington.

“While this funding is much needed, the Government’s solution doesn’t fix the problem overnight. Although we see this is a potential turning point for the country’s regional aviation network, we also know it’s only a short-term solution to a long-standing issue.

“Longer term certainty for regional airlines will also enable them to plan for the future as the economy grows, with more flights and routes.”