Details of the $600 million aviation relief package has been revealed by the Government, as airlines struggle in the face of the Covid-19 coronavirus outbreak.
The initial payment is part of the $12.1 billion coronavirus business package and does not include payment to Air New Zealand.
Transport Minister Phil Twyford said airlines and airports were being "hit hard", with the $600 million injection "about helping to keep money in their pocket".
- $163 million to go to airlines to pay passenger-based government charges for the next six months.
- $37 million for Airways (air traffic services) related fees for the next six months.
- $70 million for Airways for support due to declining revenue
- Fee rises or pricing reviews for border charges (from any agencies such as from Customs) on hold for a year.
"We are moving quickly to help by stepping in to fund things like traffic control and security screening that the aviation industry normally pay themselves and stopping any increases to fees for the next year," Mr Twyford said. "This package will see the Government temporarily fund these services while airlines experience customer decline."
"We are also committing to working with the sector and the Civil Aviation Authority to ensure there is no red tape stopping airlines ramping services back up when international conditions improve."
Mr Twyford said this package was "just the start and further initiatives will be developed with the sector to keep critical air freight flowing and our airports open".
Last night, it was reported passenger numbers at Auckland International Airport have dropped by 44 per cent compared to the same day last year as the global coronavirus outbreak slows travel to a trickle.
Air New Zealand earlier this week signalled that there could be up to 30 per cent job losses across the company as the pandemic sees airlines around the world cut flights as people cancel travel plans en masse due to global border and travel restrictions.
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