From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m
Regional airlines get $5.7m funding for operating costs
Government provides $5.7m to regional airlines to manage rising fuel costs.
In brief
Government provides $5.7m to regional airlines to manage rising fuel costs. New funding helps regional airlines offset jet fuel price hikes and maintain essential services. Originally reported by RNZ.
Government funding
The government offers $5.7 million from the Regional Infrastructure Fund to help regional airlines manage operating costs.
Current challenges
Regional Development Minister Shane Jones says airlines face extraordinary times with jet fuel prices up more than 50 percent since March.
“extraordinary times”
Funding mechanism
Grants range from $300,000 to $1.2 million based on passenger volumes and flight movements.
Support expectations
Associate Transport Minister James Meager expects airlines to maintain current service levels with this financial relief.
Sounds Air response
Sounds Air CEO Andrew Crawford says funding makes a difference but criticizes fuel companies for doubling profits.
“really does make a difference”
Fuel cost impact
Fuel prices rose 35c per litre this month with airlines cutting 30 percent of flights to manage costs.
“tough times”
The main idea
New funding helps regional airlines offset jet fuel price hikes and maintain essential services.
