"Recovery across New Zealand will require us all working together. This move by Airways is premature and will hamper Rotorua's recovery by removing air connectivity," she said.
Chadwick said there was have a huge job ahead to position Rotorua for an effective economic recovery and the airport had a crucial role.
"Airways says there would be minimal impact to Rotorua Airport but our own analysis, and that of aviation experts and representatives from key industry bodies, indicates otherwise and concludes it would, in fact, be significant.
"It would create unacceptable safety and operation risks and won't be easy to reverse."
Along with general passenger flights, Rotorua's airspace also accommodates three aerodromes, Rotorua Airport, Rotorua Lakefront and Rotorua Hospital within five nautical miles of each other and about 40 heliports and airstrips within, or on the edge of, the controlled airspace.
Chadwick said she had written to Prime Minister Jacinda Ardern outlining the implications of the Airways proposal for Rotorua if it went ahead and was urging local MPs to support calls for the retention of air traffic control services in Rotorua.
She is also calling on Airways to work with Rotorua Airport to find a solution that ensures Rotorua maintains staffed air traffic control.
Airways said, in a subsequent statement provided to the Rotorua Daily Post, that its focus was on supporting the long-term recovery of New Zealand's aviation industry by ensuring its services were safe, affordable and appropriately matched to the reality of the aviation sector now and in the future. By removing cost barriers for the airlines, this proposal worked to preserve connectivity and support economic recovery.
The statement said Airways was considering withdrawing or changing air traffic services at seven regional aerodromes around New Zealand, including Rotorua, where there were limited or no commercial flights operating due to Covid-19 travel restrictions.
"We are now consulting with our staff and we're committed to working collaboratively with the airports (including Rotorua Airport), airlines and the Civil Aviation Authority. By working together as an industry we aim to design a new future for the aviation system and a pathway back to growth.
"It is important to note that as this is a consultation with our staff, no final decision has yet been made. As a first step, the outcome of our consultation with staff is expected in May and will determine the next steps we take with airports," the statement said.
Any changes would mean aircraft will still be able to fly safely to Rotorua as they do at other New Zealand airports without an air traffic control service, including Timaru, Kerikeri, Hokitika and Whangarei. This includes freight, medical flights and future passenger services. Airways said Air New Zealand had expressed support for the proposal.
The seven aerodromes under review were those where air traffic levels had been consistently low before the Covid-19 pandemic and where air traffic was not expected to return to pre-Covid-19 levels.
Airways said prior to Covid-19, there was an average of just 12 passenger or commercial flights into and out of Rotorua Airport each day. The addition of lighter aircraft meant there were fewer than two flights per hour on average.