Waikato aviation centre takes off  with $2m grant

The Waikato is set to position itself as the Australasian centre for light aircraft manufacture and flight training with a $2 million Government grant.

But on the same day as Minister for Economic Development Jim Anderton announced the funding it was revealed a major player in the region's aviation group had a multi-million-dollar resource consent application to manufacture aircraft turned down.

Mr Anderton announced yesterday that New Zealand Trade and Enterprise would give Katolyst Group, the organisation set up to establish the cluster of aviation industries in the Waikato, $2 million to establish Aviation Waikato - based at Hamilton International Airport.

An associated aviation centre will also be set up to develop and manage the cluster of aviation companies which aim to sell replacement parts for small aircraft fleets around the world.

Aviation Waikato will also be working with Waikato University and Wintec to develop programmes to support the aircraft engineering and manufacturing skill base.

There are nine aviation industries operating in the Waikato. They include Pacific Aerospace and Alpha Aviation, involved in the manufacture of light aircraft, and one of the world's largest pilot training organisations, CTC Aviation.

But as the announcement was made yesterday it was revealed Alpha Aviation had failed in its resource consent application to build a 3668sq m building and carpark on land near the airport.

The project, which was to be built in Rukuhia, by the airport, was touted to create 300 jobs and generate up to $100 million in sales.

The decision was made by an independent commissioner and Alpha Aviation chairman Richard Sealy has said the company will most likely appeal the decision.

"It is certainly an anomaly that has presented itself suddenly. It is a decision that is not in line with generally what is going on around the airport."

Mr Sealy said the company had started construction on a smaller building which would tide it over for the next two to three years but it would have to expand after that.

He said the company was still committed to operating in the Waikato which has produced over 500 aircraft in the past 30 years.

Katolyst Group chief executive Graham Smith said the $2 million grant would provide the financial support to help establish Waikato as the top centre for light aircraft manufacture and training in Australasia.

The aviation industry generates about $50 million a year for the region. Aviation Waikato is expected to add between $7 million and $15 million a year.

Mr Smith said the funding would be used to appoint a CEO to drive the aviation cluster forward.

The CEO to be appointed by July must identify new market opportunities for the group and attracting new aviation-related businesses to the region.