Sunair borrows $2 million from New Zealand Gov’t

By Andrew Curran.

Regional airline Sunair has borrowed NZD2.08 million (USD1.18 million) from the New Zealand Government to help with the acquisition of two new aircraft, essential fleet maintenance and the refinancing of existing debt.

The government made the funds available on concessionary terms via the NZD30 million (USD17 million) regional air connectivity component of the larger Regional Infrastructure Fund. Sunair becomes the sixth Kiwi regional carrier to make use of the programme.

Sunair is an established Tauranga (TRG)-based airline that provides scheduled, charter and scenic flights around New Zealand’s North Island using six-seat, twin-engine Piper Aztecs and a four-seat, single-engine Cessna 172.

New Zealand Civil Aviation Authority data shows that Sunair is the registered operator of 10 aircraft – one Cessna 172 and nine Piper Aztecs. The oldest Piper Aztec, ZK-EVP (msn 27-8054053), was first registered with the agency in 1980, while the two most recent acquisitions, the Cessna 172 and another Piper Aztec, were added to the New Zealand aircraft register in 2011.

Sunair eyes larger aircraft

Aero South Pacific has contacted Sunair about its fleet plans, but a government media statement says the airline intends to acquire “new larger aircraft” that will “increase passenger capacity, provide greater operational flexibility, and reduce reliance on its existing fleet of six-seaters”.

Sunair’s scheduled passenger flights stretch from Kaitaia (KAT) in the north to Napier/Hastings (NPE) in the south. Other airports between these points that are serviced by Sunair include Whangarei (WRE), Great Barrier Island/Claris (GBZ), Whitianga (WTZ), Hamilton (HLZ), Tauranga (TRG), Whakatane (WHK), Gisborne (GIS) and Wairoa (WIR). The airline is also preparing to start flights between Great Barrier Island and Ardmore (AMZ) in November.

“Airlines such as Sunair are a critical part of the economic and social fabric of our regions,” said Regional Development Minister Shane Jones. “This loan means Sunair can improve efficiency and be better positioned to expand services in the future if the demand is there. It’s meaningful and timely relief in this difficult operating environment.”

Sunair becomes sixth airline to tap government loan scheme

Sunair’s loan means regional airlines have tapped almost NZD25.8 million (USD14.6 million) of the NZD30 million the New Zealand Government made available under the regional air connectivity program.

Air Chathams has been the biggest beneficiary, borrowing NZD17.2 million (USD9.75 million) to refinance debt. Blenheim-based Sounds Air has borrowed NZD4.5 million (USD2.55 million) to upgrade its fleet and refinance debt. Takaka Airport-based Golden Bay Air has borrowed NZD1.1 million (USD620,000) to refinance debt and fund essential ongoing maintenance.

As recently reported in Aero South Pacific, Invercargill-based Stewart Island Flights tapped the programme for NZD640,000 (USD362,550) to refurbish a long-out-of-service aircraft, while Tauranga-based Island Air borrowed NZD252,000 (USD142,760) for fleet maintenance.

At least two New Zealand regional airlines, Barrier Air and Origin Air, are yet to access the fund.

Photo: Sunair.
Contact the writer: andrew@aerosouthpacific.com