In a letter to both Meager and Transport Minister Chris Bishop, Luca said he had been heartened to hear Meager say the Government was not ruling out underwriting the expansion of small regional airlines.

Luca suggested distributing a small portion of the 51% Government-owned Air New Zealand profit to support regional air connectivity.

He pointed out that, in the 2023 financial year, Air NZ made a $412 million net profit.

“A subsidy of $1m to Air Chathams from Air NZ profits would represent only 0.2% of that.”

He said Air NZ withdrew from providing a service to Whakatāne in 2015. He therefore believed the Government had an obligation to subsidise those airlines, such as Air Chathams, that stepped in to fill the void.

Meager’s response acknowledged that the past few years had been particularly difficult for the aviation sector, especially smaller regional operators.

“The Regional Infrastructure Fund is one potential source of support, and officials from the Ministry of Transport and Ministry of Business, Innovation and Employment Kānoa are working to develop options for ministerial consideration.

“Ministers are aware that the Government’s dividend from Air New Zealand is another option,” he said.

“You can expect to hear more in coming months about how the Government can support regional air connectivity.”

Both Air Chathams and Sun Air have approached the Government for concessionary loans to help them stay in operation.

They have not yet received any confirmation of these.

LDR is local body journalism co-funded by RNZ and NZ On Air.