NZAAL is ranked as one of New Zealand’s leading pilot-training schools, and international student numbers have risen from 92 in January last year to 185.
The flight school has been based at Oamaru Airport for seven years and has over 50 staff.
Academy chief executive Jonathan Manuel said there was a "huge demand for pilot training overseas" and the business required expansion.
"We had been looking for quite some time and looking at different councils, and talking to different councils, but then Whanganui happened," Mr Manuel said.
A deal signed with the Whanganui District Council meant NZAAL would move into airport facilities now used by the New Zealand International Commercial Pilot Academy (NZICPA) and acquire the NZICPA’s accommodation site, with leases beginning on January 15 next year, Mr Manuel said.
The NZICPA, of which the Whanganui council is the sole shareholder, is overseen by Whanganui District Holdings, the council’s commercial arm.
Due to safety issues and quality of training in May this year the fleet had been grounded close to a month and returned to flight training in a reduced capacity in July.
Mr Manuel said these circumstances put NZAAL in an optimal position.
"The school was grounded by the Civil Aviation Authority (CAA) because it was a council-run school, and they were wanting an opt-out, and they had several other bidders, but we were the only ones who wanted to retain the school in Whanganui and take over the lease of all the other buildings," he said.
Mr Manuel said initially the NZAAL would train 40 cadets from Indian airline IndiGo in Whanganui, but intended to "slowly but surely" increase the training school there to the same size as the Oamaru base.
To give some perspective on the "scale of the operation", IndiGo "add about 60-odd jet aircraft" into its fleet each year, Mr Manuel said.
"That’s like starting an Air New Zealand jet fleet every year," he said.
Mr Manuel said the relationship with the Whanganui District Council was "fantastic" and it had been "really supportive" of NZAAL’s operations.
"They understand that having a functional airport is key to the economic growth of the region."
He said the "flow-on economic benefit" of the flight training school in Oamaru included accommodation for 120 students, the remaining 65 students sourcing rentals in town and the purchase of food locally, including 12,000 tonnes of chicken per year for NZAAL’s hostel.
"The Waitaki District Council needs to look at the Oamaru Airport facility like a national highway or the Alps 2 Ocean cycle track."
Mr Manuel said new airport manager Matt Sisson after nearly three months in the role had been "good and got the ball rolling".
"He started implementing taxiways, which we had been asking since day 1. We’re quite pleased with Matt — he’s pro-active."
However, the past few years had been frustrating for NZAAL as it attempted to expand with "no decision-makers".
"In Oamaru, we’ve been literally begging for additional land.
"Four of our planes were destroyed here by extreme weather, one last year and three this year, because they had not given us land on time to build further hangars."
With a growing wait list of students, he hoped NZAAL could continue to expand at Oamaru Airport but had concerns, Mr Manuel said.
"The chief executive talks about transformation, but we don’t see that here," he said.
"During Covid, the council increased our rent and landing fees significantly, meaning multifold.
"We were left with no choice — backed into a corner, we had to either accept the terms or leave," Mr Manuel said.
A Waitaki District Council (WDC) spokesperson said during the pandemic the council initiated a process to support affected council tenants.
"This was a consistent process requiring applications to council, to be fair to all tenants."
The spokesperson said the council valued the relationship with NZAAL and its other tenants at Oamaru Airport, and the benefits of their businesses operating in the district.
The spokesperson said the council had "actively been working with the flight school on its requirements for future growth".
"A fully executed deed of lease was signed by both parties on November 28, 2024.
"After requests by NZAAL to alter the lease document, WDC has presented a new draft 50-year lease including an agreement on existing infrastructure in July 2025, the spokesperson said.
The council "continue to work closely with NZAAL to clarify points within the draft lease, and hope to reach a satisfactory outcome".
The council was "fully committed" to enabling growth of both local business at the airport and aeronautical operations in the Waitaki district, the spokesperson said.
"Airport manager Matt Sisson is actively engaging in growth discussions with NZAAL and other operators at the airport while seeking new opportunities to further the sustainability of Oamaru Airport."
NZAAL would continue with plans to expand at Oamaru Airport "provided operational costs are kept viable", Mr Manuel said.
However, more land space would be required to construct more hangars.
