Another $150k lifeline on the cards for Whanganui's struggling pilot academy

Questions still remain over the viability of Whanganui's Commercial Pilot Academy, with no announcement yet made on the return of international students. Photo / Lewis Gardner

A decision on allowing students of Whanganui's commercial pilot academy into the country has still not yet been made, putting a second ratepayer lifeline and the commercial viability of the business in question.

The New Zealand International Commercial Pilot Academy (NZICPA) is owned by Whanganui District Council through its commercial arm, Whanganui District Council Holdings.

But since the Covid-19 pandemic hit New Zealand in March last year, no international students have been able to enter the country - seriously affecting the academy's revenue.

That financial strain led to three NZICPA staff being made redundant last December.

Early last month, the Chronicle reported the academy was given a $150,000 ratepayer-funded lifeline in an attempt to keep the business afloat.

That decision was made by the council on the understanding that significant demand still existed for the academy, and that the company had a viable and lucrative future post-Covid.

As part of that lifeline, a further $150,000 boost was expected to be made available at the beginning of September.

However, the second injection would only be provided on the condition that an announcement on the strategy to allow international students to re-enter the country was made.

The academy was purchased by the council's commercial arm in 2015, when it moved from Feilding to Whanganui. Photo / NZME

But no announcement has yet been signalled by the government, with managed isolation as a whole currently on pause as the country grapples with an outbreak of the Delta variant, putting the additional funding in question.

NZICPA chairman David Rae said he was happy with the academy's performance.

"We're still waiting for a government announcement, but we're very comfortable with the financial output of the business at the moment," Rae said.

"A decision on the second tranche of funding hasn't been made. That sort of decision is due at the end of the month depending on what, if any, information we get out of the government."

Rae declined to comment on the academy's engagement with the government, saying it was between those involved.

In early August, Whanganui MP Steph Lewis said she had been working alongside NZICPA and Rachel Boyack, who is MP for Nelson where there is also a flight school, on lobbying Cabinet to allow the admission of international students.

Lewis said last month an update was expected in "the coming weeks", but last week said the application had been put on hold as a result of the current outbreak.

"Obviously, right now, MIQ bookings have been paused. All of the border stuff has been put on hold, while we focus our attention on the current outbreak," Lewis said.

"My understanding is that once we've got on top of the outbreak, then we'll go back and look at exemption applications. At this time, there's not really a lot I can update on."

Lewis said she fully backed allowing aviation students back into the country.

"I continue to support the exemption application for international aviation students, and it's one I'll continue to advocate for to the Minister's office in Wellington."

Mayor not ruling out further cash injection

Whanganui mayor Hamish McDouall said he couldn't rule out further cash injections for the academy, with the full council to make any decision.

"[Any further payments] would be up for discussion by individual councillors. I'm not precluding it, nor saying it will happen. I've learnt that you can't always predict what a council will do."

McDouall said the council had been anticipating an announcement around July, but that never came to fruition.

"We've heard very positive noises for support for the industry and, specifically, there are Ministers who are enthusiastic about Whanganui's offering."

McDouall said he had been in contact with the Ministers himself, but would not go into any detail about the nature of those conversations.

The Chronicle has asked for further information on the academy's financial position.