Kawarau Jet says it is so concerned about safety after a second company was granted consent to operate on the Kawarau River that it may cease peak summer operations if the issue cannot be resolved.
Kawarau Jet co-director Andrew Brinsley says the company, which has been working on the river for 49 years, has been caught up in a "bureaucratic whirlpool".
His comments followed a Maritime New Zealand (MNZ) investigation into safety concerns on the Kawarau River after Queenstown Water Taxis was granted a non-notified resource consent to operate on the river.
Kawarau Jet already holds 11 consents.
From Boxing Day, it could carry up to 600 passengers a day, depending on the weather.
A MNZ safety audit recently found there were no safety concerns by having Queenstown Water Taxis operating on the river.
However, Mr Brinsley told the Otago Daily Times yesterday MNZ had "much lower standards" than were in place on the river.
Queenstown Water Taxis' consent had been issued with "very limited conditions" under the Maritime Transport Act.
"It's actually very, very basic. [Maritime's Transport Act] relates to shipping conditions and not . . . to commercial vessels on a river."
Mr Brinsley said the "radio protocols" related to the consent extended to Queenstown Water Taxis "walking around to us and telling us that they're going to be operating on the river".
"That meets Maritime New Zealand's requirements."
The Maritime Transport Act worked across international waterways, whereas on the likes of the Shotover River, a Queenstown Lakes District Council bylaw was in place which was far more stringent.
Kawarau Jet's concern was not because a second commercial operator had been granted consent for the river, but because of continuing safety concerns for all passengers on the river during the peak summer months.
Mr Brinsley said the responsibility lay with the QLDC and he was seeking a meeting with the council today.
He said Queenstown Water Taxis was granted consent through a process which was "inappropriately managed".
"They came out at the other end of it celebrating and looking at each other saying: `How did that happen?'.
"In the meantime, there are significant safety issues to be addressed.
"[The matter] is caught between some different legislation in the Maritime Transport Act and the crossover between the local authority and the harbourmaster.
"We're just caught up in a bureaucratic whirlpool."
Queenstown Lakes Mayor Clive Geddes said there had been "lengthy meetings" between QLDC chief executive Duncan Field and Kawarau Jet parties and the council had been briefed fully by Mr Field.
"We are all satisfied that the council's position with respect to safety on the river is one which is following all the best advice the council can get, particularly that from [MNZ]."
In September, Chinese tourist Yan Wang was killed after the Kawarau Jet boat in which she was a passenger flipped. Investigations are continuing.