Stewart Island air service boosted by RIF loan
New Zealand’s Government has approved a $640,000 loan to support Stewart Island’s sole airline, South East Air, enhancing regional air connectivity and community access.
The Regional Infrastructure Fund loan will enable South East Air, which operates Stewart Island Flights, to refurbish and return an aircraft to service, increasing its fleet from four to five planes. This expansion aims to meet peak seasonal demand and maintain scheduled services despite potential maintenance delays. The initiative is part of a broader $30 million Regional Infrastructure Fund package announced in 2025 to support vulnerable regional air services nationwide.
Associate Regional Development Minister Mark Patterson stated the loan will improve access to healthcare, education, and emergency response for Stewart Island residents. It will also bolster tourism, trade, and general business activity on the island, which relies heavily on air transport for connectivity to the mainland.
The funding addresses ongoing challenges in the aviation sector, particularly the impact of higher fuel costs on regional airlines. By supporting South East Air, the Government aims to ensure the airline remains viable and continues operating critical routes for Stewart Island’s economic and social wellbeing.
The $30 million Regional Infrastructure Fund package was developed in 2025 to help regional passenger airlines manage debt, maintain fleets, and sustain routes essential for regional communities’ resilience and growth. The loan to South East Air is one of several measures under this initiative.