The government will offer loans of up to $30 million to support struggling regional airlines and help prevent further reductions in air routes.
Regional Development Minister Shane Jones said regions experienced flight reductions, including the complete cessation of services, without aid from the government.
The funds will be sourced from the coalition’s Regional Infrastructure Fund and were intended as a “one-time” action to “stabilise the sector” in the short to medium term.
Jones said, “Without intervention, our regional airlines face further service cuts or a complete withdrawal from routes, as we’ve seen in some regions around the country.”
“Once fleet capacity is lost, recovery is difficult and costly. We’re acting now because a combination of factors, including the ongoing after-effects of the pandemic on air services, are placing exceptional pressures on the sector at present.”
“Small regional carriers are under pressure from rising costs, limited access to capital, and ongoing post-Covid disruptions.”
“Without this support, some communities risk losing vital air links and potential regional development.”
Associate Transport Minister James Meagre emphasised that the support provided is not a bailout, as the funding will be given in the form of concessional loans.
“The aim is to stabilise the sector and support regional routes in the short to medium term. This is not intended to meet all the airlines’ capital needs but to provide targeted relief for such things as aircraft leasing, maintenance and debt refinancing.”
Meanwhile, Jones said, “This is a one-off, modest but meaningful intervention that will help prevent further service loss and protect regional connectivity.”
The cabinet has also authorised funding for digital improvements that link the booking systems of small regional carriers with those of major airlines.
The improvements may enable passengers to book a single itinerary that includes flights operated by different airlines, including major carriers.