There is firm support from Whakatāne’s mayor for state subsidies of regional flights.
Air New Zealand’s new chief executive has signalled on RNZ’s Checkpoint the government might have to step in to keep flight services to smaller centres going.
Nikhil Ravishankar said it would be a “situational subsidy” when the economy was not doing well and demand was low.
Air New Zealand left Whakatāne about a decade ago when it shut down Eagle Airways.
Until a recent government loan scheme, Air Chathams flights to and from Auckland were at risk as well.
Tánczos told Morning Report the council had to draw a line with its own support for Air Chathams, which included a loan and relief for landing fees.
But he said it was not the job of councils to subsidise businesses.
“So I’m a strong advocate that government should be stepping in,” he said.
“These are really critical lifelines for communities like ours, but they have to make sure it doesn’t just go to Air New Zealand but it goes to small airlines like Air Chathams.”
NZ Herald
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Tánczos said the council had to draw a line with its own support for Air Chathams, which included a loan and relief for landing fees. But he said it was not the job of councils to subsidise businesses and the government should step in.
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