Deputy PM David Seymour Critiques Air New Zealand’s CEO’s Subsidy Proposal

Nikhil Ravishankar, who became the CEO of Air New Zealand on October 20, 2025, has proposed a “situational subsidy” aimed at supporting regional routes during economic downturns. This initiative comes as a response to fluctuating air travel demand, which has been notably low in recent months. Ravishankar succeeded Greg Foran, who had led the airline for six years prior to his departure.

In an interview with journalist Heather du Plessis-Allan, Deputy Prime Minister David Seymour expressed strong opposition to Ravishankar’s suggestion. He argued that implementing such a subsidy could result in excessive government intervention in the airline’s operations, potentially leading to mismanagement and inefficiency. Seymour labeled the proposal a “complete disaster,” raising concerns about the future governance of Air New Zealand.

Seymour also took the opportunity during the interview to discuss the potential legalisation of melatonin for individuals under 55. This topic has gained traction as part of a broader conversation about sleep aids and their accessibility.

Ravishankar’s proposal highlights the ongoing challenges faced by regional airlines, particularly in light of current economic conditions which have strained demand for air travel. As he navigates his new role, the balance between government support and maintaining operational independence remains a critical issue for the airline’s future.

With the airline industry recovering from the impacts of the pandemic, discussions surrounding subsidies and support structures are likely to intensify. The potential for government influence in the aviation sector will continue to be scrutinized, particularly by officials like Seymour, who advocate for minimal state intervention.

As stakeholders in the aviation sector examine these developments, the outcome of this dialogue could significantly shape Air New Zealand’s operational strategies in the coming months.