This week, New Zealand-based Kiwi Regional Airlines announced plans to launch an equity crowdfunding initiative. The company is looking to raise $2 million to purchase a second aircraft.
The new plane, which will be a Saab 340 QC, which will be used for both commercial and passenger charters. It is also set to be a backup for maintenance of its existing aircraft Saab 340A. Kiwi Regional chief executive, Ewan Wilson, told the New Zealand Herald:
“We are keen to have backup for both planned and unplanned aircraft maintenance.New Zealand has really led the way with legislation changes and enabling approved companies to raise up to $2 million through crowdfunding and turn it into shares.”
Wilson went on to note that the company has yet to select the equity crowdfunding platform it will use for the campaign. He stated:
“Two million dollars in an aviation context is really not a lot. What is really special is that thousands of potential New Zealand investors will be able to be roving ambassadors for the airline.”
Wilson added having another aircraft will not be used to expand capacity on its flights. He added:
“What this would mean for Ma and Pa investors is that they will have the opportunity to be involved in a small regional airline.”
Kiwi Regional Airlines was launched last year and offers commercial and passenger flights for the following locations: Dunedin to Nelson, Nelson to Hamilton and Nelson to Tauranga. Starting in early May, the airline will offer flights to Christchurch.
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