Sounds Air has flown its last flight from Christchurch after signalling earlier this year that it would no longer fly Blenheim to Christchurch or Christchurch to Wānaka from the end of September.
Sounds Air cut the two regional services, saying it was facing "out of control" costs despite strong bookings. Its last Christchurch to Blenheim flight departed on Sunday night.
Sounds Air managing director Andrew Crawford said the airline was now getting rid of its Pilatus aircraft, which flew longer distances but were a lot more expensive to operate, and were only flying its Cessna Caravan fleet that operate in and around the Cook Strait.
The airline had previously cancelled its services from Wellington to Taupō, and Wellington to Westport last December.
"We're going back to what we originally did in the Cook Strait market in Blenheim, Nelson, Picton, and Kapiti, and concentrating on that."
'Tragic for New Zealand regional connectivity'
Crawford said rising costs of parts and increased civil aviation levies were among the costs causing the regional airline to struggle, and their routes were not the only ones facing cuts.
He said the routes being cut were healthcare routes and people in those regions could now face much more lengthy trips for some services.
That was also identified by Regional Development Minister Shane Jones when announcing funding to support regional airlines.
"Reliable air services are critical for the economic and social wellbeing of regional New Zealand. They enable access to healthcare, education, business, and whānau, particularly in areas where other transport options are limited," he said.
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Government funding too late
The funding will see small passenger airlines receive up to $30 million in loans from the government's Regional Infrastructure Fund to help with rising costs.
Announced at the beginning of September, it will take the form of concessionary loans to provide short-term relief.
But for Crawford it came too late, with decisions for Sounds Air already well in train.
He said the regional aviation sector needed support now and the loans were not an immediate fix.
The loans are being administered through Kānoa Regional Economic Development & Investment Unit.
On the application website it said early estimates were to have final decisions within three months of receiving fully completed applications, with applications able to be received through to late December.
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