AIR New Zealand has won the bulk of funding from the Government's extension of the air cargo support scheme with a further NZD180 million (US$142 million) boost for cargo revenue.
The announcement comes as the airline's deadline for a long-delayed capital raise nears. It has said that, depending on market conditions, it would go to the market around the end of this month and analysts expect it to seek around NZD1.2 billion.
Air New Zealand said funding from the Maintaining International Air Capability scheme (MIAC) during the next 12 months would be around NZD180 million, about NZD2 million less than it got in the first half of the current financial year.
Under the most recent extension, the airline has been initially awarded support for around 60 flights per week to destinations including Los Angeles, Vancouver, Hong Kong, Shanghai and key Pacific islands and Australian ports.
Although the scheme is tapering off as more commercially viable passenger flights resume, government support to keep airlines flying here by supporting freight operations will reach nearly NZD1 billion.
Belly freight is historically the cream on top of passenger operations for airlines but with some flights carrying just a handful of passengers during the pandemic, cargo has been the main income earner on many routes and critical for keeping New Zealand connected to the rest of the world.
This month the Government announced the extension of the maintaining international air connectivity (MIAC) scheme would be NZD250 million.
The scheme was due to finish at the end of March after the Government had spent NZD730 million on MIAC and its predecessor with Air New Zealand the biggest beneficiary.
Transport Minister Michael Wood said the final extension of the scheme would provide much-needed certainty as passenger travel recovers, ensuring there are regular international flights for travellers and freight, reports New Zealand Herald.
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The announcement comes as the airline's deadline for a long-delayed capital raise nears. It has said that, depending on market conditions, it would go to the market around the end of this month and analysts expect it to seek around NZD1.2 billion.
Air New Zealand said funding from the Maintaining International Air Capability scheme (MIAC) during the next 12 months would be around NZD180 million, about NZD2 million less than it got in the first half of the current financial year.
Under the most recent extension, the airline has been initially awarded support for around 60 flights per week to destinations including Los Angeles, Vancouver, Hong Kong, Shanghai and key Pacific islands and Australian ports.
Although the scheme is tapering off as more commercially viable passenger flights resume, government support to keep airlines flying here by supporting freight operations will reach nearly NZD1 billion.
Belly freight is historically the cream on top of passenger operations for airlines but with some flights carrying just a handful of passengers during the pandemic, cargo has been the main income earner on many routes and critical for keeping New Zealand connected to the rest of the world.
This month the Government announced the extension of the maintaining international air connectivity (MIAC) scheme would be NZD250 million.
The scheme was due to finish at the end of March after the Government had spent NZD730 million on MIAC and its predecessor with Air New Zealand the biggest beneficiary.
Transport Minister Michael Wood said the final extension of the scheme would provide much-needed certainty as passenger travel recovers, ensuring there are regular international flights for travellers and freight, reports New Zealand Herald.
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