The academy will continue to operate until mid-2026. Photo / NZME
Whanganui’s commercial pilot academy had negative equity of close to $5 million at the end of the 2024-25 financial year.
But it is “too early to predict” what the final financial loss will be when it closes next year.
According to financial statements for the New Zealand International Commercial Pilot Academy (NZICPA) released publicly last week, the business had a net loss of $1.527m in 2024-25.
There was a net loss of $1.78m the year before.
Overall, its negative net equity for 2024-25 was $4.963m, compared to $3.38m in 2023-24.
Net equity is a company’s value minus its liabilities.
Whanganui District Council is the sole shareholder in the academy.
In a statement, Whanganui mayor Andrew Tripe said the NZICPA’s balance sheet represented “a snapshot of the academy’s financial situation”, soon after its certification to train students was suspended.
Investigations by the Civil Aviation Authority (CAA) and NZ Qualifications Authority (NZQA) began in May, for safety and quality of training, respectively.
As a result, its fleet was grounded, and its Part 142 certificate was suspended for around a month.
“Since then, our priority, along with Holdings [Whanganui District Holdings Ltd] and NZICPA, has been to balance the needs of everyone affected, including ratepayers, in what is a very complex and dynamic situation,” Tripe said.
“While we know there will be a financial loss from the council’s ownership of NZICPA, it is too early to predict what that will be.
“When we have the full financial picture, including transition costs, income from asset sales and the impact of tax losses, we will be able to share that with the public.”
The academy covered students’ food and accommodation costs while planes were grounded, from a $10.3m funding package signed off by the council in 2023.
Whanganui District Holdings Ltd, the council’s commercial arm, owns the academy’s aircraft and simulators, hangar, classrooms, accommodation facilities and some vehicles.
Holdings chair Carolyn van Leuven told the Chronicle this month that the $10.3m package had been used up, but the council would continue to support the academy until it closed.
The academy’s statements showed it had current liabilities (debts to pay within 12 months) of $3.36m, and non-current liabilities (debts not due for at least 12 months) of $2.86m at the end of June.
Oamuru-based flight school New Zealand Aviation Academy (NZAAL) is set to take over the NZICPA’s base at Whanganui Airport and its accommodation facility at College Estate from the start of 2026, paying around $829,000 per year for leases.
The NZICPA will continue to operate until mid-2026, although its new location has not been named.
The Chronicle has asked for the total amount of funding the academy had received in loans and working capital since its inception to November 13, 2025.
But the council declined, citing the recent release of financial reports and that the information would soon be publicly available.
“More recent financial reports will also be made available after the reporting period,” the council said.
“These will also be published on the Whanganui District Council website.”
It did release details showing subvention payments from GasNet to the NZICPA of around $1.46m between 2020-2025, including $495,653 in the 2024-25 financial year.
GasNet is another council-controlled organisation under the umbrella of Holdings.
Council chief finance officer Mike Fermor said subvention payments were made from a profit-making entity to a loss-making entity, which changed each’s net tax position.
“The profit-making entity is buying the tax losses of the loss-making entity, which it then offsets against its own taxable income,” he said.
“From a group perspective, the subvention payments are a way of keeping cash within the group rather than paying it over to IRD, while still meeting all tax obligations.
“They are an efficient way of getting cash within the group to an entity that needs it.”
Tripe said the council expected losses from the academy to be offset over time by income from leases and the economic benefit to Whanganui from having NZAAL at the airport.
“The process to wind up the pilot academy is still being worked through, with a report to come back to a future council meeting on the best way that can be achieved.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.