Golden Bay Air First to Tap $30m Lifeline for Regional Routes

Golden Bay Air plays a central role in transporting time-sensitive freight, facilitating access to healthcare appointments, and providing emergency evacuation capability when road access is cut.

Golden Bay Air will become the first regional carrier to receive financial backing under the Government’s new $30 million Regional Infrastructure Fund (RIF) aviation support package, in a move aimed at stabilising vulnerable air links and safeguarding connectivity for isolated communities.

Associate Transport Minister James Meager confirmed the airline will receive approximately $1.1 million in loan funding, marking the first allocation from the Coalition Government’s targeted fund for at-risk regional routes.

Strengthening a Critical Regional Lifeline

The loan will allow Golden Bay Air to refinance existing aircraft debt and complete essential major maintenance checks — a crucial step in maintaining operational reliability across its routes from Tākaka to Nelson, Karamea and Wellington.

Golden Bay, at the northern tip of the South Island, is one of New Zealand’s most geographically isolated regions. When Tākaka Hill Road is closed due to slips or severe weather — events that have become more frequent in recent years — air access becomes a critical transport alternative for residents, freight, and emergency services.

Golden Bay Air plays a central role in transporting time-sensitive freight, facilitating access to healthcare appointments, and providing emergency evacuation capability when road access is cut.

Minister Meager said the funding is designed to provide short- to medium-term stability for smaller carriers facing rising operational costs, aircraft maintenance expenses, and limited economies of scale compared to larger airlines.

“The loan will help safeguard flights in and out of Golden Bay and improve the company’s operational reliability. Crucially, the support will strengthen economic resilience for a remote region by helping to keep businesses and people connected,” he said.

Backing Tourism and Regional Economies

Beyond essential services, the airline is also a key gateway for tourism. Golden Bay serves as an access point for visitors heading to the Heaphy Track and the Abel Tasman National Park — two of the country’s premier walking destinations.

West Coast–Tasman MP Maureen Pugh said certainty around air connectivity provides much-needed stability for tourism operators and local businesses.

“Ensuring the viability and connectivity of Golden Bay is vital for such an isolated community. This loan funding gives certainty to the tourism sector, helping build their future,” she said.

Tourism remains a major contributor to regional economies, and reliable air services are often the difference between sustained visitor growth and seasonal volatility in remote areas.

A Broader Reform: Interlining Innovation

The RIF aviation package goes beyond immediate financial relief. A portion of the $30 million fund has been earmarked to help regional airlines integrate booking systems with larger carriers — a process known as “interlining.”

Interlining enables passengers to book multi-leg journeys on a single ticket, streamlining travel between regional centres and main trunk routes. Currently, many small carriers operate outside the booking ecosystems of major airlines, limiting passenger visibility and through-ticketing options.

“This initiative has the potential to be a true gamechanger for smaller carriers, by strengthening the commercial sustainability of regional airlines,” Mr Meager said. “It will support our regional connectivity and bolster Kiwis’ accessibility to travel around the country.”

Industry observers say integrated ticketing could improve load factors, enhance passenger convenience, and increase the competitiveness of regional carriers without requiring large-scale subsidies.

Further Allocations Pending

Fund administrator Kānoa has received several additional loan applications from regional airlines and is working to allocate the remaining funds as quickly as possible. Airlines will be invited to apply for interlining support in the coming weeks.

The Golden Bay Air loan signals the Government’s first tangible intervention under the aviation component of the Regional Infrastructure Fund, positioning the scheme as both a stabilisation mechanism and a structural reform tool for New Zealand’s regional aviation network.