New Zealand's largest international flight school could take over the commercial pilot academy in Whanganui. Photo: Tuakana Te Tana
A potential buyer has emerged for Whanganui's New Zealand International Commercial Pilot Academy (NZICPA) following a turbulent four months.
Whanganui District Council and its investment arm Whanganui District Council Holdings Limited (Holdings) are in negotiations with the country's largest international flight school, Oamaru-based New Zealand Airline Academy (NZAAL), to expand its operations into Whanganui.
The council is the NZICPA's sole shareholder and wants to keep the city as a base for pilot training while limiting financial risk to ratepayers.
Mayor Andrew Tripe said the move was a chance to keep the school in Whanganui.
"Holdings and NZICPA have brought us a pathway forward that, if successful, will see the continuation of Whanganui as a strong base for commercial pilot training.
"We want to support them to work through this, while also minimising further financial exposure for the council," Tripe said.
Mayor Andrew Tripe said they wanted to keep the flight school in Whanganui. Photo: RNZ / Robin Martin
The negotiations follow a review of options for the flight school, which was temporarily grounded by the Civil Aviation Authority (CAA) in May while it investigated anonymous safety complaints.
The suspension halted flying operations and flight training for many of the academy's 145 enrolled students, although some ground-based training continued.
The NZ Qualifications Authority (NZQA) also launched an investigation into the quality of training.
Chief executive Gerard Glanville resigned in June.
The CAA suspension was lifted in late July.
Also in late July, the academy reduced the number of full-time roles from 20 to 10 as it prepared to relaunch flight training with a smaller number of students and aircraft.
"I know that this has been a difficult situation for both the Holdings and NZICPA boards, as well as the staff and students at NZICPA," Mayor Tripe said.
"A tremendous amount of work has gone into getting to this point and there is more to do, but the focus is on achieving a positive long-term outcome for all."
Holdings chair Carolyn van Leuven said any deal would be subject to conditions, including approval from regulators and satisfaction of due diligence requirements for both parties.
"We acknowledge the ongoing uncertainty for staff, students and the Whanganui community during this challenging period," van Leuven said.
"With NZICPA now in a position to train students, the two schools are looking to agree a pathway forward that offers the best outcome possible in the circumstances for staff, students and the local economy.
"These discussions are ongoing, but we expect to be able to share more information soon."
A joint statement from the council, Holdings and the NZICPA on 21 August said an interim academy chief executive, Scott McKenzie, had been appointed.
NZICPA director Craig Compain said McKenzie had led substantial changes at the academy, where he has been engaged as an advisor since the CAA review.
Compain said improvements had been made to address the concerns raised by the CAA, "including full cultural, financial and maintenance reviews, the appointment of several senior positions, and better alignment of resourcing with requirements".
On 13 August, the council refused an official information request by Local Democracy Reporting for details of the complaints or concerns raised to the CAA and NZQA and the impact of the investigations on student numbers.
The council also refused to provide specific financial information, including its total investment in the flight school and break-even forecasts, saying "any premature disclosure" would undermine negotiations.
The council said it intended to proactively release the information within six to eight weeks.
The council has approved Holdings to continue to provide short-term working capital to NZICPA for up to 90 days.
"This is expected to be covered within existing approved funding and Holdings' own income, including the sale of assets such as aircraft that are surplus to requirements," van Leuven said.
"We want to ensure that NZICPA can continue to operate through the transition period over the coming weeks and months to enable the best outcome for all involved."
Whanganui District councillors met with the Oamaru academy's chief executive and chief flying instructor last week.
"It was exciting to hear about the growth and philosophy of NZAAL and their strong interest in Whanganui," Tripe said.
* LDR is local body journalism co-funded by RNZ and NZ On Air
