A Rotorua helicopter company says it will pay its share of more than $10 million in court-ordered reparations for victims of the Whakaari White Island tragedy despite going into liquidation in 2022.
Volcanic Air Safaris Ltd, one of three helicopter operators that conducted tours on the island, was among five businesses sentenced on Friday in the Auckland District Court on charges laid by Worksafe.
The 30-year-old company was fined $506,000 and ordered to pay $330,000 in reparation to the victims on its tours when the island erupted on December 9, 2019.
It was the only helicopter company with tourists on the island at the time. White Island Tours also had tourists and guides on the island.
The eruption killed 22 people and injured 25 others.
Actions of Volcanic Air Safaris staff immediately following the eruption were described at the time as heroic, after chief pilot Tim Barrow and a crewman flew from Rotorua to help rescue survivors. The actions went against Civil Aviation instructions for all emergency services to stay clear of the island.
Barrow received an insignia of the New Zealand Bravery Decoration for his actions.
Volcanic Air Safaris folded in 2022 due to factors including a tourist slump from Covid-19 border closures and legal fees during WorkSafe’s eruption investigation.
Barrow, who was one of three company shareholders, told the Rotorua Daily Post on Monday victims would be paid via the company’s insurers. He said the fine was now in the hands of the liquidator.
“Most importantly and firstly I want to say that our hearts and thoughts remain with those who lost loved ones or who were injured on the day, that will remain with us for the rest of our lives.”
Barrow said he had met with some of the injured and families whose loved ones perished and described it as an “extremely sad and humbling experience”.
Volcanic Air Safaris liquidator Andrew McKay told the Rotorua Daily Post the reparation would be worked through with the company’s insurance and the victims would be paid. The fine would form part of the liquidation.
He said another liquidation report was due in the coming months and it was too early to say whether the fine could be paid.
Barrow said despite their best efforts to keep Volcanic Air Safaris Ltd viable, it was “just too much” for the business to remain operating.
He said more than 90 per cent of its clients were from overseas and the border closures were devastating for business.
“After declining from more than 20 staff operating six aircraft to less than five staff operating three aircraft the company was ultimately placed into liquidation.
“It’s a sad end to a business operating for more than 30 years.”
Barrow said the trading name Volcanic Air had been adopted by a new company. Barrow was chief pilot and a director and shareholder of the new company.
He said it was good there was still an aviation business at the Lakefront as it had been home to a number of iconic aviation businesses since Fred Ladd started his operation there in the 1960s.
Ladd was famous for illegally flying an aircraft under the Auckland Harbour Bridge in 1967.
RNZ reported on Friday that Judge Evangelos Thomas ordered the five companies to collectively pay $10.21 million in reparations and about $2m in fines.
Research agency GNS Science was separately fined $54,000 for failing to fully communicate to contracted helicopter pilots the risks of flying to Whakaari/White Island.
The judge ordered reparations be paid by the island’s owner, Whakaari Management, White Island Tours and Volcanic Air Safaris.
White Island Tours has indicated its insurance would cover the $5m in reparations but it was unable to afford the $517,000 fine and would likely fold, RNZ reported.
Andrew, James and Peter Buttle own Whakaari Management, the company that, for a fee, granted access to the island. Whakaari Management was fined $1m and was ordered to pay $4.8m in reparations to all victims and their families.
RNZ reported on Monday that Whakaari Management’s lawyer, James Cairney, said the company apologised “unreservedly” to all those killed and injured but it had no insurance to fund reparations to victims.
“Unlike White Island Tours, they didn’t have an insurance policy for the simple reason they didn’t consider they had a duty and they didn’t consider they had activities on the island that required insurance,” Cairney said.
“Simply put, Whakaari Management doesn’t have enough money to pay that sum and the family will need to consider all of their options.”
Judge Thomas said at sentencing on Friday that Whakaari Management claimed to have no assets, RNZ reported.
Judge Thomas said payments from tour operators to access the island, under Whakaari Management’s agreements, should have gone to the company owned by the three Buttle brothers.
He said there was nothing to stop the Buttles, as Whakaari Management’s shareholders, from advancing the necessary funds to cover the reparations to victims.
“There may be no commercial basis for doing so, but many would argue there is an inescapable moral one. Some defendants responded to the tragedy with a preparedness to put their lives at risk to help others,” Judge Thomas said.
- Additional reporting by RNZ
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.