New Zealand's government has approved an NZD845,000 New Zealand dollar (USD475,000) loan to support regional carrier Air Napier (NPR, Napier/Hastings), funding essential fleet upgrades and the refinancing of existing debt.

The loan, provided through the government's regional infrastructure fund (RIF), is the final allocation under a NZD30 million (USD17 million) regional air connectivity package launched in September 2025 to support financially vulnerable regional airlines.

"We appreciate the efforts of the current government in supporting regional connectivity and Air Napier's regional efforts. This is a significant investment in the East Coast community to secure critical air services and ensure regional connectivity continues into the future by engaging with Air Napier," CEO Shah Aslam said in a statement shared with ch-aviation.

Announcing the programme in September 2025, regional development minister Shane Jones and associate transport minister James Meager said small regional carriers were facing rising costs, limited access to capital, and continuing post-COVID disruption.

The concessionary loans are intended to stabilise the sector and protect essential regional routes, with funding available for aircraft leasing, maintenance, and debt refinancing, they said.

The government said the NZD30 million package was designed to prevent further service cuts or the withdrawal of regional airlines from routes, warning that replacing lost fleet capacity could be difficult and costly.

Air Napier plays an important role in connecting communities across Hawke’s Bay and Tairāwhiti, including transporting Hastings Airfield-based medical staff to Wairoa, Jones argued. The airline also supported emergency operations during Cyclone Gabrielle, carrying civil defence personnel, medical staff, patients, and urgent supplies along the East Coast.

The announcement follows the government's recent allocation of NZD5.7 million (USD3.2 million) in grants to regional airlines to help cover operating costs amid mounting cost pressures.

Air Napier is a passenger charter operator with a mixed fleet of seven aircraft, comprising one Citation Mustang; one Piper (twin turboprop) PA-31 Navajo; three Piper (twin piston) PA-34 Seneca; one Piper (single piston) Cherokee; and one GA8 Airvan, the airline confirmed.

It offers on-demand flights, cargo transport, and airport support services across New Zealand.

In 2023, the carrier signed a purchase agreement with Maeve Aerospace (Rotterdam) to acquire thirty-five Maeve 01 electric aircraft. Maeve Aerospace has not announced a confirmed launch date for the aircraft.