New airport terminal and interline deal for Chatham Islands

By Andrew Curran.

New Zealand's remote Chatham Islands has debuted a freshly revamped airport terminal and local airline Air Chathams announced an expanded domestic interline agreement with Air New Zealand this week.

The ribbon was cut on the Inia William Tuuta Memorial Airport Terminal at Chatham Islands Airport (CHT) on August 11. The Chatham Islands are located around 800 kilometres east of the New Zealand mainland.

The "renewed" passenger terminal is a substantial upgrade on the former 1980s-era terminal. The project marks the completion of the five-year Longer and Stronger project, which included a 490-metre runway extension that was finished in 2024 and other airport infrastructure investments.

Millions pumped into Chatham Islands airport infrastructure

The New Zealand Government, which ultimately owns the loss-making airport through the Chatham Islands Enterprise Trust, has spent NZD45 million (USD26.3 million) upgrading the airport over the past decade.

The now 1,850-metre sealed runway, one of the country's longest, has solar lighting and can handle narrowbody commercial jets.

"The Chathams' geographic isolation means reliable connections with the mainland are very important for supporting its economic sustainability, education, healthcare, tourism and businesses," said New Zealand's Regional Development Minister Shane Jones, who was on the island for the terminal opening and interline agreement announcement.

Jones joined Air New Zealand CEO Nikhil Ravishankar at the event this week.

Ravishankar flew in to announce the expansion of the domestic interline agreement between his airline and local family-owned carrier Air Chathams. Effective August 13, passengers travelling to and from the Chatham Islands will be able to book a single journey connecting them with Air New Zealand's domestic network. The two airlines had previously successfully trialled an interline agreement on the Auckland (AKL) – Whakatāne (WHK) city pair.

"The growing complexity and economics of regional aviation highlight why airlines and the wider sector need to work together in new ways," said Ravishankar.

Air Chathams CEO Duane Emeny has been working to secure the interline agreement for several years, previously saying it was fundamental to the airline's long-term future.

Air New Zealand CEO Nikhil Ravishankar and Air Chathams CEO Duane Emeny

Many previous approaches to Air New Zealand about interline agreement

The New Zealand Government contributed almost half a million dollars to help implement the interline agreement. Several previous approaches by Chatham Islanders to put in place an interline agreement had been rejected by Air New Zealand, including when current Prime Minister Christopher Luxon was CEO of Air New Zealand.

Ravishankar, who stepped into the CEO role only 12 months ago, proved more receptive. In addition to government funding, both airlines also contributed to the cost of implementing the interline agreement.

"Strong regional air links are essential to New Zealand's economy and to the people who rely on them every day," said Associate Transport Minister James Meager. "They connect communities with jobs, education, healthcare and tourism opportunities, while helping regional businesses reach markets across the country." 

"This partnership is a great example of industry working together to strengthen regional connectivity, make travel simpler and support the long-term resilience of New Zealand's aviation network."

Photos: Air Chathams.
Contact the writer: andrew@aerosouthpacific.com