Government backs BOP regional aviation
The New Zealand Government has approved a $2.08 million loan to Bay of Plenty-based Sunair to support fleet upgrades and debt refinancing, part of a $30 million regional air connectivity package.
The Coalition Government has confirmed a $2.08 million Regional Infrastructure Fund loan to Sunair, a regional airline based in the Bay of Plenty, to assist with acquiring two new aircraft, essential fleet maintenance, and refinancing existing debt. The funding aims to enhance operational efficiency and position Sunair for future service expansion if demand increases. Regional Development Minister Shane Jones highlighted the airline’s role in supporting economic and social infrastructure across Northland, Waikato, Bay of Plenty, Coromandel, Tairāwhiti, and Hawke's Bay.
Sunair currently operates routes not served by larger airlines, providing critical connectivity to communities such as Wairoa, Whitianga, and Whakatāne. Associate Transport Minister James Meager stated the loan strengthens regional aviation resilience by preserving routes that may not be viable for larger operators but remain essential for local access to education, health services, and tourism. The investment is part of a broader $30 million regional air connectivity package developed in 2025.
The proposed new aircraft will increase passenger capacity and operational flexibility, reducing reliance on Sunair’s existing fleet of six-seater planes. This upgrade is expected to improve service reliability and efficiency for passengers traveling between regional centers. The government emphasized the importance of maintaining air connectivity in areas where commercial viability is challenging.
The $30 million regional air connectivity package was established in 2025 to support vulnerable regional air services across New Zealand. The loan to Sunair is one of several initiatives under this package, designed to ensure continued access to air travel for communities that depend on these services for economic and social needs.