The aviation industry says that New Zealand needs about 100 new pilots each year. Photo / 123rf
The aviation industry says that New Zealand needs about 100 new pilots each year. Photo / 123rf
The aviation industry is blaming student loan restrictions for New Zealand’s looming pilot shortage, warning that only young Kiwis with financial backing from their families can realistically afford pilot training.
In its findings published last week, the Aviation Industry Association of New Zealand (AIANZ) and the Ringa HoraServices Workforce Development Council revealed that New Zealand needs (on average) 100 more pilots annually.
It warned that the gap between workforce supply and demand will grow by 2-3% each year if no changes are made to New Zealand’s tertiary policies.
Association chief executive Simon Wallace said that the high cost of pilot training is locking students out.
“A major disincentive at the supply end is the cap on student loan borrowing for domestic students that has been set at $35,000 per year since 2013. Back then government agreed to review the cap but this has not occurred,” Wallace said.
“Now, with inflation and the cost of living increases, training costs have increased to as much as $120,000 for a two-year course of study. So students are expected to fund at least an additional $50,000 on top of the $70,000 student loan they are limited to.
“The cost is shutting out a lot of young Kiwis aspiring to become pilots. Only those with financial support from families can afford to train.”
Simon Wallace, chief executive of AIANZ. Photo / AIANZ
Researchers noted other factors contributed to the stress of the situation, such as the impact of the Covid pandemic on the industry.
“Airlines globally lost pilots during Covid-19 and while passenger numbers are back to normal, pilot numbers are not, and shortages are expected to continue. The shortfall of pilots in North America alone is estimated at 17,000 in 2024 and expected to remain significant over the next decade,” Wallace said.
“This international demand could double the rate of our trained pilots leaving the New Zealand workforce to move overseas in the next 10 years. That will drastically accelerate the situation we already face.”
Air New Zealand chief operational integrity and safety officer David Morgan said the airline has put measures in place to protect it from future problems.
“While Air New Zealand does not currently face a pilot shortage, we know it’s important to prepare for future demands. As such we are actively investing in training programmes to ensure there is a steady pipeline of qualified pilots and engineers. The Mangōpare Air New Zealand Pilot Cadetshipis a crucial initiative to support this effort,” Morgan said.
Morgan added that the airline was pleased with the help it received.
“We are very grateful for the support from government and industry partners in this future planning. Their continued collaboration is essential to ensure that pilot and engineer shortages do not adversely impact the aviation sector in New Zealand in the future,” he said.
According to AIANZ’s research, Air NZ’s pilot cadet programme would contribute to the solution but ultimately wouldn’t be enough. It also suggested changes to immigration policies enabling international students with a commercial pilot’s licence to stay in the country for a period and work as flight instructors.
“This approach could increase supply relatively quickly to reduce the acute shortfall at flight schools. The recently announced Air New Zealand cadet scheme may contribute to reducing the pilot shortage, but won’t solve the problem long-term,” Wallace said.
Katrina Sutich, a tertiary and evidence policy group manager for the Ministry of Education, said the Government expects study costs to be shared between learners, their families, and the Government.
“The student support system, which includes the student loan and student allowances schemes, is complemented by tuition subsidies, fee subsidies, and fee regulation. This helps to manage the cost of study for learners. In total, the Government spends just over $4 billion a year on funding tertiary education,” Sutich said.
“We continue to work with the sector [including in relation to this report] to look at innovative solutions in a fiscally constrained environment and support positive workforce outcomes for this key industry.
“The Government would need to balance any increase in expenditure alongside its fiscal priorities for tertiary education and across all portfolios.”
The association urged the Government to take action, stressing that workforce shortages in the aviation industry would have a rippling effect on others.
“The industry is critical to the economy, connecting us to global markets and providing vital services across search and rescue, agriculture and primary industries, forestry, tourism, energy, security and biosecurity,” Wallace said.
“We need government to step up and take this seriously.”
