Air Chathams will reduce flights<\/a> into Whakat\u0101ne by 45 percent, Whanganui by 22 percent and K\u0101piti by 10 percent, as the price of jet fuel doubles, with chief excutive Duane Emeny telling RNZ’s Checkpoint that the aim was to cut costs without doing long-term damaged to the market.<\/p>\n“There’s no real point in operating the services, if we can’t even cover the direct cost,” he said.<\/p>\n
The government is already working with regional airlines struggling to make ends meet, offering up to $30 million in loans, and Emeny claimed that assistance was needed more than ever.<\/p>\n
Meager has heard the cries and seems prepared to explore how the funding criteria can be changed during crisis.<\/p>\n
“I take Duane’s point about maybe modifying the fund,” he told Checkpoint. “It’s not something we’ve looked at yet, but given the ongoing fuel crisis, it’s certainly worth considering what flexibility there is under the existing fund conditions.<\/p>\n
“We’ve got to be careful stewards of taxpayers’ money, but at the same time, our airlines are under significant pressure through no real fault of their own. There’s a set of circumstances outside of most people’s control, so I think officials will look at what flexibility we have under the current criteria.”<\/p>\n
The government has already allocated funding to Golden Bay Air and Meager confirmed most of the other regional airlines had also lodged applications, which were being processed by a group of regional development ministers.<\/p>\n
Meager anticipated the applications would drain the current funding pool.<\/p>\n
“We’ve been pushing quite hard, given the ongoing fuel price volatility, to get some support out the door,” he said. “There are a handful of applications still to be decided on… I would be hoping within the next couple of weeks.”<\/p>\n
So far, Air Chathams has not proposed cuts to its service to the Chatham Islands, where it is the sole provider.<\/p>\n
“We know Air Chathams has a particularly unique set of circumstances,” Meager said. “They’re the only airline that serves the Chatham Islands and from I’ve seen in the information they’ve provided, they make a strong case for support.<\/p>\n
“I take on board some of the issues they’re dealing with, which mean they have to make some decisions around routes, and I’ve made sure we’re looping in local MPs and local councils to make sure we’re providing any support we can.”<\/p>\n
Meager conceded suspending interest on the loans was a consideration.<\/p>\n
![\"Air](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/4NPWVHU_copyright_image_161665.jpeg\")
<\/p>\n
\nAir Chathams is the only airline serving Chatham Island.
\nPhoto: RNZ\/Katie Doyle\n<\/p>\n
“I know, under some of the loans distributed under other pots of the regional infrastructure fund, there have been periods where no interest has incurred or deferred payments,” he said. “That’s the kind of thing we can look at the flexibility in the existing concessionary loans.<\/p>\n
“I’d have to leave that over to the officials and treasury to keep an eye on what’s good financial practice, but beyond that, there are other things we can look at. What are the other cost pressures they’re facing?<\/p>\n
“Can we do something within our own regulatory systems to make it easier for them to operate and what are the other avenues of support we can provide?”<\/p>\n
Air New Zealand has also had to reduce schedules during the fuel crisis, but Meager confirmed it was not eligible for the regional airline support.<\/p>\n
He insisted none of the smaller airlines were currently at risk of going under, despite their hardships.<\/p>\n
“I have been talking to them about how they are going and I am concerned that the longer this crisis goes on, the harder it is going to be,” he said.<\/p>\n
“We will need to look at what other steps and interventions that we might take should it come to that point – I don’t think we’re at that point.<\/p>\n
“Supply of jet fuel is pretty good, price is a concern, but we’ve seen some signals over the past couple of days that prices may start to ease.<\/p>\n
“We’ve got to keep a close eye on it and respond accordingly, as situations change.”<\/p>\n
Sign up for Ng\u0101 Pitopito K\u014drero<\/a>, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.<\/p>\n","protected":false},"excerpt":{"rendered":"James Meager is confident the airlines can survive the current hardship. Photo: RNZ \/ Nathan McKinnon Associate Transport…\n","protected":false},"author":2,"featured_media":371084,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[48,47,42,43,49,46,44,45,40,38,41,39],"class_list":{"0":"post-371083","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-audio","9":"tag-current-affairs","10":"tag-headlines","11":"tag-news","12":"tag-podcasts","13":"tag-public-radio","14":"tag-radio-new-zealand","15":"tag-rnz","16":"tag-top-news","17":"tag-top-stories","18":"tag-topnews","19":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/371083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=371083"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/371083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/371084"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=371083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=371083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=371083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"James](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/4JUGK1S_Media_6_jfif.jpeg\")
<\/p>\n