The New Zealand government has awarded a NZD465,000 New Zealand dollar (USD272,000) grant from the regional infrastructure fund (RIF) to support interlining between Air Chathams (3C, Chatham Island) and Air New Zealand (NZ, Auckland International), according to a government statement dated August 12, 2026.

The expanded arrangement takes effect on August 13 and covers services from Auckland International to Whanganui, and from Chatham Island to Auckland, Wellington, and Christchurch. Flights between Auckland and Whakatane are already covered in the pre-existing interline network launched in March 2026.

"The growing complexity and economics of regional aviation highlights why airlines and the wider sector need to work together in new ways. Air New Zealand and Air Chathams are both proud airlines with a long history of connecting New Zealanders, and we share a commitment to finding practical ways to strengthen the country's aviation network," said Air New Zealand chief executive, Nikhil Ravishankar.

The government said the funding will also support improved baggage handling, coordinated customer support, and better disruption management, with both carriers co-funding the project.

Airline contribution

Air Chathams chief executive, Duane Emeny, told ch-aviation that the government grant is spread across both airlines and is less than each carrier's total contribution towards establishing the interline arrangement.

"We have contributed more than 50% of that total quantum, and the amount granted by [the government] goes across both airlines, so [it] will be less than the total contribution cost of each airline for interline establishment. However, it is still a very helpful grant and has allowed this interline to progress," Emeny said.

Emeny added Air Chathams is focused on ensuring the existing interline routes work well with Air New Zealand, but would view potential future expansion positively.

As previously reported by ch-aviation, Air Chathams was already discussing an interline partnership with Air New Zealand when the government announced support for regional airlines in September 2025. Cabinet had also approved separate funding for digital upgrades needed to enable interlining, without disclosing the amount.

The interline grant is separate from Air Chathams' NZD17.2 million (USD10.1 million) RIF loan to refinance debt, announced in April.