Air Chathams loan update
The council recognises the important role Air Chathams plays in supporting Whanganui’s regional connectivity, local economy and wider community.
Reliable air services help connect Whanganui with the rest of the country, supporting business travel, tourism, events, health and family connections, and making it easier for people to live, work, visit and invest here.
In 2020, the council provided a $500,000 loan to Air Chathams, alongside similar support from other councils. This loan has previously been publicly disclosed.
We are continuing to work with Air Chathams on the next steps for the loan, with a focus on future opportunities for Whanganui and the long-term value regional air services bring to our district.
Why Air Chathams matters to Whanganui
Air Chathams provides more than a transport service. It supports local businesses, helps attract visitors and events, and plays an important role in keeping Whanganui connected.
For our community, air services provide convenient access to work, family, healthcare, education and recreation opportunities around the country.
We also support Air Chathams through a concession on airport landing charges for its larger ATR 72 aircraft. This shared-risk approach helps encourage the use of larger aircraft on higher-demand flights, increasing the number of seats available for travellers.
We remain committed to working constructively with Air Chathams and will continue to advocate for sustainable regional connectivity for Whanganui.
Future opportunities for Whanganui
In April 2025, the council and Air Chathams signed a memorandum of understanding (MOU) to work together on a business case exploring the potential relocation of Air Chathams’ headquarters to Whanganui and the feasibility of establishing a direct Whanganui–Christchurch service.
The MOU reflects a shared commitment to investigating opportunities that could strengthen regional connectivity, support economic growth and create long-term benefits for the Whanganui district.
The discussions have also included consideration of the $500,000 loan facility provided by the council to Air Chathams in 2020 as part of a broader package of opportunities being explored between the two organisations.
Progress on the business case has slowed in recent months as Air Chathams has responded to significant challenges facing the regional aviation sector, including rising fuel costs and operational pressures. However, we remain committed to continuing this work and expect discussions to resume in the near future.
We were aware that the loan term date has passed, but this was one of the factors relating to the MOU and the business case work.
Frequently asked questions
Why did the council provide a loan to Air Chathams?
The loan was provided in 2020 to support regional air connectivity at a time when the aviation sector was facing significant disruption. Similar support was provided by other councils.
How much was the loan?
The loan provided by Whanganui District Council was $500,000.
Was this loan publicly disclosed?
Yes. The loan has previously been publicly disclosed.
Has the loan been repaid?
The council is continuing to work with Air Chathams on the next steps for the loan. Further information will be shared publicly as this work progresses.
Why is the council still working with Air Chathams?
Air Chathams provides an important regional air service for Whanganui. We are focused on future opportunities for the district and the long-term value that reliable air connectivity brings to the community and economy.
Why is regional air connectivity important?
Regional air services support business, tourism, events, access to services, employment opportunities and investment. They also help keep Whanganui connected to the rest of New Zealand.
Is the council providing more financial support?
No additional financial support beyond existing arrangements has been confirmed. The council continues to work through the next steps in relation to the existing loan and maintains the airport landing fee concession for ATR 72 services operating into Whanganui Airport.
Why should ratepayers support regional air services?
We recognise that any use of public money needs to be carefully considered. Air services bring wider economic and community benefits, including supporting local businesses, visitor spending and access for residents.
Is this only a local issue?
No. The challenges facing regional aviation are being experienced across New Zealand. This situation highlights the importance of a consistent national approach to regional air services, rather than councils having to respond differently at a local level.
What happens next?
We will continue to work constructively with Air Chathams and will provide further updates as more information is available.