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Friday, September 19, 2025

David Farrar: More corporate welfare for airlines

The Government announced:

The Coalition Government will support at risk regional air routes with up to $30 million in loans from the Regional Infrastructure Fund for small passenger airlines, Regional Development Minister Shane Jones and Associate Transport Minister James Meager say.

“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,” Mr Jones says.

“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,” Mr Jones says.

A terrible decision. Why should taxpayers give or loan money to airlines? If not enough people in a region are willing to pay the cost of air connections, then they just have to get to the next closest airport.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders

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