Aviation
SIX CARRIERS JOIN NEW ZEALAND AIR FREIGHT CAPACITY SCHEME
May 4, 2020

New Zealand has announced the first group of successful applicants to take part in its NZD330 million (US$199 million) international air freight capacity scheme meant to support the airline industry and ensure uninterrupted supply chain this time.

 

The Kiwi government said in a statement that the first batch is consist of Air New Zealand, China Airlines, Emirates, Freightways Express, Qantas and Tasman Cargo.

 

Transport Minister Phil Twyford said additional carriers will be announced "shortly". The scheme has so far added 56 weekly cargo services from New Zealand.

 

Then air capacity scheme adds capacity for high-value export cargo, ensures essential imports such as medical supplies and is intended to maintain trade links with key global markets.

 

"There is a huge demand for air freight, at a time when capacity is limited," Twyford said as he reiterated that air freight capacity recovers as New Zealand responds to the COVID-19 global pandemic.

 

“At the beginning of the pandemic, we moved quickly to support charter flights to ensure New Zealand had the crucial supplies it needs and to back our exporters. However, these flights only allowed businesses to export to a limited number of markets," he said.  

 

“This new schedule restores more export markets to more businesses and with greater frequency. There is a huge demand for air freight, at a time when capacity is limited. This scheme helps provide certainty for business, while airlines and carriers respond to a changing world," he added.

 

The scheme is short-term and market-led. The statement noted that funding is provided to guarantee cargo on key routes under agreements with the carriers. Carriers then offer that capacity directly to freight customers on commercial terms.

 

 

“We are closely monitoring the international air freight market and will respond based on how the COVID-19 situation evolves. As the market recovers, we will reassess the need for funding," the release said.

 

The Kiwi government has set aside $600 million for the aviation sector as part of its $12.1 billion COVID-19 support package.

 

Acknowledging the impacts of the pandemic on the domestic aviation sector, the government has also provided immediate funding for local air freight and lifeline air services.