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

Nikhil Ravishankar, the newly appointed CEO of Air New Zealand, has proposed a “situational subsidy” aimed at supporting regional routes during economic downturns when demand decreases. Ravishankar officially took on the role on October 20, 2025, succeeding Greg Foran, who departed after six years in the position.

During an interview with journalist Heather du Plessis-Allan, Deputy Prime Minister David Seymour expressed significant concerns regarding Ravishankar’s proposal. He warned that implementing such a subsidy could result in excessive government control over the airline, potentially undermining its operational independence. Seymour characterized the proposal as a “complete disaster,” reflecting apprehension about the implications of government intervention in the aviation sector.

Seymour’s comments highlighted broader concerns regarding the role of government in supporting struggling industries. While the idea of a subsidy may be intended to help regional air services, critics argue that it could lead to a slippery slope of increased regulation and oversight. The Deputy Prime Minister emphasized that any financial aid must be carefully scrutinized to prevent unintended consequences that could harm the airline’s long-term viability.

In addition to discussing the subsidy proposal, Seymour also addressed the topic of legalizing melatonin for individuals under 55 during the same interview. This issue has gained traction as part of a broader discussion on mental health and wellness, particularly in the context of sleep management.

Ravishankar’s approach to the challenges facing Air New Zealand marks a significant moment for the airline, as it navigates a recovery phase following the economic impacts of the global pandemic. His leadership style and policy proposals will be closely watched as stakeholders assess their potential effects on the company’s future.

As Air New Zealand prepares to adapt to shifting market conditions, the dialogue surrounding government subsidies and regulatory policies will likely continue to evolve. The airline’s ability to balance financial assistance with operational freedom will be critical in maintaining its competitive edge in the aviation industry.