Gov’t funding backing Air New Zealand’s Western Sydney flights

By Andrew Curran.

Government funding has helped lock in Air New Zealand flights to Western Sydney Airport (WSI). The kiwi carrier has set October 26, 2026, as the start date for thrice-weekly narrowbody flights between Auckland (AKL) and the new airport.

The news follows Singapore Airlines recently saying Singapore (SIN) – Western Sydney flights would start on November 23.

“Flying directly into Western Sydney opens up a catchment of more than 2.5 million people, including a significant New Zealand community,” said Lucy Hall, Air New Zealand’s GM for short haul and domestic.

But like most new air services in Australia, Air New Zealand will receive an unspecified “contribution” from the AUD16 million (USD11.1 million) Western Sydney International Take-Off Fund.

The fund is underwritten by the New South Wales Government and Western Sydney Airport. Western Sydney Airport is wholly-owned by the Australian Government via an entity called Western Sydney Airport Co Limited (WSA Co).

The New South Wales Government and Western Sydney Airport say the fund will help deliver over 162,000 international visitors to New South Wales and generate an estimated AUD530 million (USD366.3 million) in visitor expenditure.

Yesterday, Federal Transport Minister Catherine King welcomed the news of the Air New Zealand start date, which she said her government had helped secure.

The new Singapore Airlines service to Western Sydney Airport is also starting with government help.

Under the fund’s terms, airline funding is decided on a case-by-case basis and can include incentives such as passenger subsidies and marketing support.

Airlines use government funding to help underwrite new routes

The precise details of the individual packages are never disclosed, but airlines, including Australian airlines, make liberal use of them. It is now rare for a new service to start without some form of government support, with most Australian state governments offer aviation support packages to encourage carriers to fly to airports in their state.

The Air New Zealand and Singapore Airlines flights to Western Sydney Airport will complement their existing flights to Sydney’s Kingsford Smith Airport (SYD). The two airlines are among the dominant international carriers at that airport.

“This new route gives customers more choice and flexibility when travelling between New Zealand and Australia,” said Hall.

Western Sydney Airport expects to handle its first cargo flights in July and is opening to passenger flights in October.

Qantas yet to set Western Sydney Airport start date

Qantas and its low-cost sibling carrier, Jetstar, have also said they will fly from Western Sydney Airport but are yet to announce start dates.

Qantas CEO Vanessa Hudson has previously said that airline would initially consider flights to Brisbane (BNE) and Melbourne (MEL) while airports such as Coolangatta/Gold Coast (OOL) and Cairns (CNS) were likely destinations for Jetstar’s first flights from WSI.

Virgin Australia has expressed interest but is yet to say whether it will fly to the new airport.

Photo: Western Sydney Airport.
Contact the writer: andrew@aerosouthpacific.com