Sounds Air Photo: Photo Copyright Gavin Conroy
Regional operator Sounds Air is canning its Wellington to Westport route from the end of the year in the face of tough economic headwinds.
Managing director Andrew Crawford said in his 21 years at the helm, nothing compared to the post-Covid-19 financial challenges. He backed a call from another regional airline, Barrier Air, which earlier this week said small airlines needed some help from the government.
In response, Regional Development Minister Shane Jones said there might be a need for a dedicated fund to help the airlines survive.
However, if a case was established he would have to convince Cabinet to accept it.
Andrew Crawford Photo: Sounds Air
Sounds Air said unlike Air New Zealand, it did not receive government funding - and had twice applied for funds intended for the regions but missed out both times.
A year ago, the business had approached key people in all its regional destinations asking for more support in the face of "tough times".
It also met with several ministers and made a failed application to the Regional Infrastructure Fund - leaving him frustrated and angry.
Crawford said if the airline did not meet the fund's criteria "who would?"
Air New Zealand, rail and roading all attracted government funding as "critical infrastructure", however, regional airlines were forced to seek private shareholders.
"And it's an increasingly desperate market."
Air New Zealand was pulling out of some regional routes - meaning airlines such as Sounds Air were even more important.
"Don't forget the people that fly these routes, it's healthcare, business, education, government. It isn't holidaymakers, this is critical infrastructure."
There were at least 30 countries around the world that stepped in to support regional airlines which could be done in a number of ways.
"For some reason we just don't want to do it in this country."
Obstacles facing the airline since the pandemic included: the cost of fuel, the exchange rate, the supply chain and the labour market.
"But the big ones are the fuel, maintenance and the dollar."
Regional airlines make worthwhile contribution - minister
Shane Jones Photo: RNZ / Angus Dreaver
Jones said there was no doubt regional airlines contributed to regional productivity and improved resilience for communities.
"I have no desire to get into a war of words with the owners of regional airlines," he said, adding that Air New Zealand got backing because it was effectively government-owned.
He intended asking officials to look into the merits of establishing a fund similar to the $30 million kitty set aside to help support coastal shipping services via the National Land Transport Programme.
Jones said he came close during 2019-2020 while the Provincial Growth Fund was being set up to having some money set aside for smaller districts to "enjoy aviation connectivity" for a few years.
It didn't happen but "we are at a point where a dedicated fund could be necessary".
Crawford had a message for Prime Minister Christopher Luxon, whom he hoped would be supportive, given his career running Air New Zealand.
"I think the government should talk to regional aviation as a group urgently and work out what's going to happen. ... This can't go on and I'm not doing it anymore."
Asked if his Cabinet colleagues might be sympathetic to the possibility of a helping hand for regional airlines, Jones said it was like all areas of government spending - there was only so much money to be shared out in a very difficult economic climate.
