The government of New Zealand will disburse regional infrastructure fund (RIF) loans to Air Chathams, Sounds Air, and Island Aviation (New Zealand) to safeguard essential air services, according to an official press release.

The allocations form part of a NZD30 million New Zealand dollar (USD17.7 million) package earmarked for regional aviation, led by an Air Chathams NZD17.2 million (USD10.2 million) loan to refinance debt. Sounds Air will receive NZD4.5 million (USD2.6 million) for fleet upgrades and refinancing, while Island Aviation secured NZD252,000 (USD150,000) for fleet maintenance.

Including a NZD1.1 million (USD650,000) loan previously awarded to Golden Bay Air (Takaka) in February 2026, total allocations now amount to approximately NZD23.1 million (USD13.6 million), leaving around NZD6.9 million (USD4.1 million) available under the fund.

The Kānoa Regional Economic Development & Investment Unit is continuing to process applications from other carriers after awarding the first loan to Golden Bay Air.

Associate transport minister James Meager noted that the industry faces pressure that puts crucial routes at risk. "Losing those routes would risk people being cut off from the rest of the country and disruption to the delivery of essential services," he said.

Regional development minister Shane Jones said the funding package was created in late 2025, prior to the Middle East conflict, but has become more critical given the current commercial environment. He added that officials had been asked to advise on temporarily adjusting loan conditions to help airlines meet obligations under adverse conditions.

Air Chathams operates services linking Chatham Island with mainland New Zealand alongside regional routes from Auckland International. Sounds Air connects Wellington with communities in the South Island, while Island Aviation provides short-haul services between Waiheke Island and nearby destinations.