After being in business for 22 years, the company was told by the CAA last year it was required to recertify its operations from being a recreational aviation organisation to an organisation conducting adventure aviation, and to relicence its pilots and instructors accordingly.
As a result of the CAA’s demand and the costs involved, Glide Omarama managing director Gavin Wills confirmed yesterday the company had gone into insolvency.
Ahuriri ward councillor Ross McRobie said losing so many jobs was the worst possible news for Omarama.
‘‘I guess the first thing is, are they going to be able to be deployed elsewhere [and] will there be another particular party come along and do a similar job the current organisation is doing?
‘‘If there isn’t, 21 job losses in a small community is pretty significant. It’s sad and disappointing.’’
Mr Oakley said the announcement was a ‘‘huge blow’’ for the gliding industry, not only in New Zealand but around the globe, given Mr Wills was respected worldwide in gliding circles.
He criticised the CAA for its handling of the issue, and said the change in certification it ordered did not ‘‘fit the gliding model’’.
‘‘The CAA are coming across as an enforcer. They are coming down with a big hammer saying, ‘if you don’t fit into this box, you can’t operate’.
‘‘The problem Gavin has got is, for him to fit into this box they’ve got, it’s going to cost him a lot of money. And at his stage of life, why would you want to drag yourself through all that stress and financial burden?
‘‘It’s a shame a business like this has closed down because of these regulations.’’
The Canterbury club’s members would also be affected.
Many frequented Omarama for its gliding, and several owned properties or had caravans based there.
‘‘Where are they going to go? It’s a huge loss for the town and the community,’’ he said.
Mr Oakley was not convinced another operator would take over given the cost of certification, coupled with there being ‘‘no money to be made in gliding’’.
Yesterday, Mr Wills told RNZ the cost of recertification could be up to $100,000, meaning it was unrealistic for a small operator such as Glide Omarama.
He said gliders should not be treated like other air transport operators, as they were not aircraft with engines.
‘‘It’s a huge shock to the gliding community, but not just in New Zealand — the letters of support pouring in from around the world at the moment are extraordinary,’’ Mr Wills said.
‘‘I hadn’t realised just how many people were touched.’’
Glide Omarama had been calling on regulations specific for gliders for a number of years, but the request appeared to have fallen on deaf ears.
‘‘We have been non-compliant because you [the CAA] haven’t been able to come up with a certification system that fits gliding.’’
The CAA said the certification — under Part 115 of the Civil Aviation Rules — was in place to keep the public and tourists safe.
‘‘This rule was first introduced in November 2011 to regulate the adventure aviation industry, and requires operators to be certificated in much the same way as air transport operators,’’ it said.
Waitaki Mayor Gary Kircher said Glide Omarama’s closure was ‘‘very disappointing’’, as it was a major employer in the area and a ‘‘valued and valuable business in that part of our district’’.
— Additional reporting RNZ
