Whanganui pilot academy: New Zealand Airline Academy emerges as potential buyer of NZICPA

Whanganui District Holdings will continue providing short-term working capital to the academy for up to 90 days. Photo / NZME

New Zealand’s largest international flight school could take over the commercial pilot academy in Whanganui.

A joint statement from Whanganui District Council, Whanganui Holdings Ltd (Holdings), and the New Zealand International Commercial Pilot Academy (NZICPA) said on August 21 that Holdings was progressing negotiations with Oamaru-based New Zealand Airline Academy (NZAAL) “to expand its operations into Whanganui”.

Holdings chairwoman Carolyn van Leuven said the organisation acknowledged the ongoing uncertainty for staff, students and the Whanganui community.

“With NZICPA now in a position to train students, the two schools are looking to agree a pathway forward that offers the best outcome possible in the circumstances for staff, students and the local economy,” she said.

“These discussions are ongoing, but we expect to be able to share more information soon.”

Any deal would be subject to conditions, including approval from regulators and satisfaction of due diligence requirements for both parties, she said.

In May, the NZICPA’s fleet was grounded after anonymously reported safety concerns, with the Civil Aviation Authority (CAA) and NZ Qualifications Authority (NZQA) launching investigations into safety and the quality of training, respectively.

Chief executive Gerard Glanville resigned in June.

An interim chief executive, Scott McKenzie, had been appointed at the academy, the statement said.

Academy trainee pilot Shahad Parammal told the Chronicle there had been a remarkable turnaround at the facility.

The new leadership team of McKenzie, director Craig Compain, Rob McGechan and Preeti Sinha had stepped forward during “one of the most challenging times”, he said.

“Yes, it was tough, but their experience and commitment have been crucial in helping NZICPA recover and rebuild.

“What is most needed now is strong support from the council.

“If the council backs this same team, I have no doubt NZICPA will grow into one of the best aviation academies globally.”

Speaking to the Chronicle, Whanganui Mayor Andrew Tripe said details of a possible deal with NZAAL were still being worked through and involved potential asset and share sales.

“Our job is to extract as much value as we can from it through the exit process.

“It’s actually really exciting. Potentially, Whanganui could be [NZAAL’s] main operation.”

Whanganui District Council Holdings board chair Carolyn van Leuven.

NZAAL director Celroy Mascarenhas told the Chronicle that the company would look to set up a base in Whanganui, then purchase the NZICPA.

“We have always wanted to set up a second base, and we’ve looked at numerous locations across New Zealand.

“Council wants someone with experience to bring and keep a flying school in Whanganui.”

The council is the sole shareholder of NZICPA, which is overseen by Holdings, the council’s commercial arm.

Fellow director Jonathan Manuel said NZAAL intended to lease existing infrastructure, including the NZICPA’s accommodation sites Hato Hōhepa (formerly the Nazareth Rest Home) and College Estate (the former Collegiate Motor Inn).

“We’ve done the hard yards here in Oamaru, setting up and becoming the largest flight school in the country,” he said.

“It’s an easier task to replicate that in Whanganui. The facilities are right there.”

The Chronicle reported on July 25 that four NZICPA aircraft had received official certificates of airworthiness, with two more submitted for CAA review.

Parammal said this week that nine aircraft had resumed flying, with about 40 students restarting training.

The council has approved Holdings continuing to provide short-term working capital to the academy for up to 90 days.

Van Leuven said that was expected to be covered within existing approved funding and Holdings’ income, including the sale of assets such as aircraft that were surplus to requirements.

In 2023, the council approved a $10.3 funding package for the academy.

“We want to ensure that NZICPA can continue to operate through the transition period over the coming weeks and months to enable the best outcome for all involved,” she said.

Mascarenhas said there were still details to work through, but he and Manuel were mentally preparing for a lease term to begin on September 15.

“If NZICPA left the building completely and we walked in, there is no handover,” he said.

“The most important people there are the students, and we’ve got to look after them.

“It’s in their best interests that we have an orderly transition.”

Tripe said NZAAL was an excellent organisation.

“They are good people.

“Their safety and performance is very strong. Someone has been hired to do due diligence, but they are demonstrating to us that they are here for the long term.

“They also have scope to grow their operation.”

Manuel said he and Mascarenhas first came to New Zealand as aviation students in 2007.

“We understand what an international student would feel being here, and I think that’s been our success story,” he said.

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 the Whanganui District Council.