The ‘‘tough’’ decision from New Zealand Airline Academy not to renew its lease brings to an end an often-fraught relationship between the flight school and the Waitaki District Council since the business started operating out of the North Otago airport in 2018.
This included frustrations from the top-performing flight school over delays in approvals for a new hangar after the loss of four aircraft in one year due to severe weather and a decision by NZAA last year to open a second flight school at Whanganui Airport, now the organisation’s main base.
Student numbers at the flight school, ranked one of the highest in the country, have increased significantly to more than 200 since it began operating in Oamaru.
But they had failed to reach an agreement with the council on lease and landing fee arrangements.
It was ‘‘short-sighted’’ of the council, he said, adding that he had tried to explain the wider ‘‘economic benefit’’ to the town of having the flight school based there, including buying fuel locally.
He called it a ‘‘tough decision’’ to exit Oamaru on December 31, but said the ‘‘charges are no longer commercially viable’’.
The decision affects 52 staff.
Mr Mascarenhas said they were looking at other options for employees, including at their main base in Whanganui, and he was ‘‘hopeful’’ a resolution would be found.
In a release to wider media issued following queries from the Otago Daily Times, the council said it would ‘‘develop a plan to operate in a more commercial manner to attract future tenants’’ and was ‘‘open to other flight schools operating at the airport in future’’.
The council said ‘‘favourable terms’’ were offered to NZAA when it started at the airport in 2018, including what it called a ‘‘significant discount on charges, with the aim of supporting a new growing business’’.
‘‘While the council is supportive of new businesses and their growth, the council does not believe it appropriate for ongoing ratepayer subsidisation of a large and successful commercial business.’’
Mr Mascarenhas said the council had ‘‘hiked’’ charges and then added the discount to this.
He also said NZAA ‘‘completely rejects any suggestion that safety is not taken seriously within the organisation’’ and the academy took its reporting obligations ‘‘extremely seriously’’, after concerns were raised in a council committee meeting this week.
An incident last year involving one of the academy’s training aircraft was ‘‘immediately reported’’ to Rescue Co-ordination Centre New Zealand ‘‘in accordance with prescribed procedure’’ and there was an investigation by the Civil Aviation Authority, he said.
During the incident, described as ‘‘serious’’ in the committee meeting, there was a propeller strike on the runway and the plane’s nose wheel detached at about 9pm on February 13 last year.
‘‘As a result, airport management escalated the matter by lodging an Aviation Related Concern with the Civil Aviation Authorities in November 2025.
‘‘The operator did not formally report the incident to the council until February 2026, approximately 12 months after the event.’’
Mr Mascarenhas said the incident was formally reported to the CAA ‘‘within the prescribed timeframe’’.
‘‘Safety requires significant investment, and we have spared no expense in ensuring we have both the right systems and the right people in place.’’
NZAA had ‘‘robust’’ processes in place on reporting, he said.
