Students expected to return to Whanganui flight school in April

New Zealand International Commercial Pilot Academy prepares to welcome back international students next month. Photo / Bevan Conley

The Whanganui-based New Zealand International Commercial Pilot Academy (NZICPA) is hoping to see an influx of international students when border restrictions change on April 12.

About 50 international students from Indian commercial airline company IndiGo have applied for visas to study with NZICPA, which signed a contract with IndiGo in 2019.

While New Zealand borders have been closed, NZICPA has been surviving with just 20 students and $500,000 in interest-free loans from Whanganui District Council and the Whanganui District Council Holdings (WDCHL).

WDCHL is a council-controlled organisation (CCO) responsible for the flight school and NZICPA and GasNet Ltd.

WDCHL chairman Declan Millin told Whanganui councillors this week that the intention was to build the pilot academy back to the position it was in two years ago.

Then, students were doing about 600 hours of flying time a month.

The WDCHL board has drafted a "prudent and flexible" statement of intent for the next two years which was presented to the council this week.

Millin said WDCHL was "very positive" that flight school would be able to start producing returns again once the students arrived.

"Covid impacts could potentially affect things for 12 to 18 months before stability returns," he said.

"Students have already had visas approved and have been going through the necessary gateways to get here so we're very positive."

Councillor Philippa Baker-Hogan asked Millin if it was possible to predict a rate of return from NZICPA in the year ahead.

"We're very aware of ensuring we deliver a return for shareholders and ratepayers," he said.

Millin said it was the intention to repay loans but returns would be subject to solvency.

"We can't just take the cash out of NZICPA if they can't afford it," he said.

"But the clear expectation is that we make repayments."

Councillor Rob Vinsen said the draft statement included a figure of six per cent return, which he said was a worthwhile target.

Millin said that was the goal but asked for flexibility.

"We are doing everything we can to try to balance achieving a return while maintaining solvency," he said.

Councillor Kate Joblin said it was reasonable to expect a return along with the inherent expectation that health and safety standards would not be compromised.

"That is not a criticism and I don't expect a response - it is merely a statement," she said.

Councillors voted in favour of accepting the draft statement which will now go to the Whanganui Holdings board for comment, before being finalised for the council to receive by June 30, 2022.