Government backs regional airline Air Napier
The New Zealand Government has approved an $845,000 loan to Hawke’s Bay airline Air Napier to upgrade its fleet and refinance debt, reinforcing support for regional air services.
The Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced the $845,000 loan from the Regional Infrastructure Fund (RIF) to Air Napier, marking the final allocation under the Government’s $30 million regional air connectivity package established in 2025. The funding will enable essential upgrades to Air Napier’s fleet and help refinance existing debt, ensuring the airline can continue operating sustainably. The Government highlighted Air Napier’s role in connecting communities across Hawke’s Bay and Tairāwhiti, particularly in facilitating healthcare access for Hastings-based medical staff travelling to Wairoa.
Air Napier has provided flights for Hastings-based doctors and nurses for decades, reducing travel time between Hastings and Wairoa from hours by road to minutes by air. This service supports local healthcare access by enabling timely patient transfers and staff mobility. The airline’s contribution to regional connectivity was underscored as vital for maintaining essential services in remote areas.
The loan is part of a broader $30 million package introduced in 2025 to support vulnerable regional airlines facing financial and operational challenges. Air Napier is the last airline to receive support under this initiative, which aims to sustain regional air services critical to economic activity and emergency response capabilities. The Government has also allocated $5.7 million in grants to help regional airlines cover day-to-day operating costs amid rising expenses.
Regional airlines like Air Napier are described by the Government as essential to tourism, trade, and business activity in regional areas. During Cyclone Gabrielle, Air Napier assisted in transporting civil defence personnel, medical staff, patients, and urgent supplies, including medicines, along the East Coast. The Government reiterated its commitment to supporting these airlines amid ongoing cost pressures and operational difficulties.