New Zealand and Australia consider regional airline support

The financial struggles of some regional airlines in New Zealand have spurred a new round of debate about the need for government support for this sector, while the Australian government is also considering how much backing to give the country's largest independent regional airline.

Such questions are common in many countries. Regional aviation is often a hot-button political issue, as governments and opposition parties know that maintaining air services is one of the key concerns for voters in regional communities.

However, due to their smaller scale and thinner revenue streams, regional airlines have been hit particularly hard by the supply chain problems and resulting cost increases that are plaguing the airline industry.

Calls for more government support for regional airlines have been increasing in recent years, and two developments have magnified the issue further.

In New Zealand, the regional airline Sounds Air has just announced that it will sell five Pilatus PC-12 turboprops that comprise more than half its fleet, and it will also cut the routes they served.

And in Australia, the government has already taken steps to shore up Rex while it is in administration, and further support is likely to be needed.