Tail fins of an Air New Zealand and Air Chathams aircraft, symbolising the new interline partnership set to link regional travellers through shared booking and baggage systems. Photo / Air NZ

Air NZ and Air Chathams join forces under new deal

Air New Zealand and Air Chathams have announced a new agreement that will allow passengers to book a single ticket for flights involving both airlines, beginning with services between Whakatāne and Auckland from December 2025.

The deal means checked bags will transfer through to the final destination, with no need for multiple bookings or separate check-ins. The Government has described it as a major step toward improving regional connectivity.

Associate Transport Minister James Meager said the arrangement showed what could be achieved when large and small airlines work together. “Streamlining bookings and baggage-handling between the smaller carriers and the bigger players will make it much easier for the travelling public to plan and book their preferred routes in one go,” he said.

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Meager added that the interline model was part of the Government’s wider effort to stabilise regional aviation after announcing a $30 million support package for smaller airlines earlier this year. “The aim is to stabilise the sector and support regional routes in the short to medium term,” he said.

Air Chathams chief executive Duane Emeny said the partnership gave the airline greater visibility through Air New Zealand’s booking channels and would help strengthen regional connections across the country.

The announcement has drawn interest from Barrier Air, which has faced similar challenges to Air Chathams in maintaining reliable island and regional links amid rising costs.

Barrier Air chief executive Grant Bacon told AoteaGBI.news the Government’s loan scheme was welcome but would not resolve the underlying cost pressures. “A part that used to cost 20,000 US dollars is now costing 100,000. These are not parts that we are replacing because they have failed — they must be replaced at fixed calendar intervals,” he said.

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Bacon said maintenance and parts costs total more than three million dollars annually, and that fluctuations in the exchange rate have further strained margins. He said Barrier Air would “definitely look” at an interline-style agreement if system compatibility and alliance restrictions could be overcome.

Both Meager and Regional Development Minister Shane Jones have signalled that the Government wants to see more integration between larger carriers and smaller operators to keep regional routes viable.

Such interline agreements overseas often go further, allowing passengers to earn loyalty points, access lounges, and enjoy other shared benefits between carriers.

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For Great Barrier, it could also help attract more visitors to the island via Air New Zealand’s booking portal, and mean simpler connections — a bonus especially after several difficult years of reduced travel during the Covid-19 lockdowns and anchoring bans linked to the Caulerpa outbreak.

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