Air New Zealand will receive up to NZ$900mn ($519mn) in emergency funding from the country's government as it manages the impact of the coronavirus pandemic on air travel, which has forced it to cut almost all of its international flights.
The loan facility will be available for a period of two years and will be used to support Air New Zealand's business operations as it manages the implications of government border restrictions and substantial reductions in travel demand, Air New Zealand said. The New Zealand government has banned any foreign travellers from entering the country as it introduces strict measures to contain the spread of the coronavirus.
The government funding can be converted to equity in Air New Zealand, with none of the financing able to be used to pay shareholders through dividends, Air New Zealand said.
