Sounds Air: Government loans too late - planes sold

The Government's announcement today of loans to help regional airlines has come far too late for Sounds Air that recently cancelled routes including out of Wānaka.

Sounds Air Managing Director Andrew Crawford told Crux today that "planes have already been sold and redundancies have taken place."

Mr Crawford said that he felt "deflated" by the lack of Government support especially as 40 percent of passenger traffic from Blenheim and Wānaka was related to regular health needs such as chemotherapy treatment.

"It's too late. We were talking to Government for six years and nothing happened."

Sounds Air MD Andrew Crawford. "It's too late. We were talking to Government for six years."

The Government announced this morning that small passenger airlines are set to receive up to $30 million in loans from the Regional Infrastructure Fund to help with rising costs.

The funding will take the form of concessionary loans to provide short-term relief.

Regional Development Minister Shane Jones said communities were at risk of losing vital air links without intervention - and once fleet capacity was lost, recovery would be difficult and costly.

He said the government was committed to ensuring all regions, not just the urban centres, remained connected and included in the national economy.

"Reliable air services are critical for the economic and social wellbeing of regional New Zealand. They enable access to healthcare, education, business, and whānau, particularly in areas where other transport options are limited," he said.

"Small regional carriers are under pressure from rising costs, limited access to capital, and ongoing post-Covid disruptions. Without this support, some communities risk losing vital air links and potential regional development."

It appears in the case of Sounds Air that none of Minister Jones statement will apply - at least as far as Wānaka and Blenheim are concerned.