NZ government lends Sunair $1.2M to grow regional air service
What's the deal? New Zealand's government has extended a US$1.35M loan to Bay of Plenty-based airline Sunair through the Regional Infrastructure Fund (RIF). The debt will fund the potential purchase of two new aircraft, fleet maintenance, and refinancing of existing debt.
What does Sunair do? It flies regional routes across the upper North Island — spanning Northland, Waikato, Bay of Plenty, Coromandel, Tairāwhiti, and Hawke's Bay. Many of those routes are served by no other airline.
Why now? The loan is part of a US$19.4M regional air connectivity package the government built in 2025 to prop up vulnerable services. Regional Development Minister Shane Jones called it "meaningful and timely relief in this difficult operating environment."
What's the endgame? Larger aircraft would lift passenger capacity and cut Sunair's reliance on its current fleet of six-seaters. That, Jones says, positions it to "expand services in the future if the demand is there."
By the numbers: Sunair joins a growing list of RIF loan recipients. Air ChathamsDealroom has a profile for this one. Try Dealroom → received US$11.1M and Sounds AirDealroom has a profile for this one. Try Dealroom → US$2.91M to refinance debt and upgrade fleets, while Golden Bay Air, Stewart Island FlightsDealroom has a profile for this one. Try Dealroom →, and Island AirDealroom has a profile for this one. Try Dealroom → took smaller sums for maintenance and refurbishment.
The signal: Governments are increasingly stepping in as lenders where private aviation economics fail. As Associate Transport Minister James Meager put it, the loan preserves routes "that may not be viable for larger operators but remain important for regional connectivity."
Read more: beehive.govt.nz
Image credit: Photographer 192
