Pasifika Air has been grounded before takeoff.
Pasifika Air - the new venture from Mike Pero. Photo: Supplied
The airline started by businessman Mike Pero was slated to start offering flights between New Zealand and the Cook Islands in June.
In February Pero told RNZ Pasifika Air was looking at taking bookings at the end of March. That never eventuated.
Pero said the reluctance of the government to establish a Pacific travel bubble had shot down its plans.
"While the dark cloud hanging over global travel remains, we expected a brighter outlook for the Pacific region.
"The Cooks have never had Covid-19 and there is still no border reopening date, yet the travel bubble with Australia is about to open. Amid this continuing uncertainty, I have reluctantly decided now is not the time to launch Pasifika Air."
Without a reopening date set in stone, Pero said it was difficult for it to lease aircraft because it took about three to four months from booked to delivery.
"To commit three to five million in deposits and insurance just to have two-to-three aircraft sitting on the tarmac makes no commercial sense."
"We have been offered some very attractive propositions over the past six months but I am not prepared to commit to $60 million worth of aircraft and a five-to-ten year lease when there is so much uncertainty."
Air New Zealand engineering services was also no longer in a position to provide maintenance on planes, further adding to difficulty, he said.
Pero said his personal investment in the airline had amounted to several hundred thousand dollars.
All staff and contractors will be paid and commitments honoured, he said.
Despite the setback, Pero was bullish about the airline's future.
It had competed 80 percent of the work required to obtain its Air Operators Certificate and raised three quarters of its target funding which left the door open to resurrect plans should conditions change, he said.