Whanganui’s international commercial pilot academy hit by low numbers and grounded planes
The flight school was banking on receiving 100 new cadets from Indian airline IndiGo by the end of April. Photo / Bevan Conley
New cadets are arriving at the New Zealand International Commercial Pilot Academy (NZICPA) in Whanganui, but it is a trickle, not a stream.
The academy was banking on 100 new cadets from Indian airline IndiGo by the end of April.
A report from Whanganui District Council Holdings chairwoman Carolyn van Leuven said 14 had arrived by April 23, with 43 additional cadets identified.
Eight had received visas, six had their visas being processed, five were training but had not applied for a visa and 24 were approved by IndiGo but not yet in training.
Speaking at a council-controlled organisation committee meeting this week, she said it was frustrating numbers were yet to ramp up.
She said as of May 21, 16 new IndiGo cadets had arrived at the academy.
“Even [NZICPA’s] pessimistic business case of five weeks ago had 35 IndiGo students by the end of May. We’re not there.
“They are in the pipeline and NZICPA directors still consider that, once student numbers are hit, the academy will more than pay its way.
“The issue for [the] council is: how long are you willing to support it while it’s loss-making?”
According to the council’s last annual report, the NZICPA group made a loss of $685,034 from trading in the year to June 2023.
In 2023, the academy signed a deal with IndiGo to train 200 new cadets up to December 2026.
Holdings board member Lucy Ellwood said its confidence in the cadet pipeline had eroded.
“What we did understand last year when visas were being slowly processed by Immigration New Zealand [was] that some students dropped out of that pipeline and chose Australia instead,” she said.
“I haven’t heard yet why that pipeline isn’t converting as expected.”
Ellwood said it was unclear whether the delays were at a student level - if they had “decided to take a few weeks before uprooting their lives and moving here” - and there would be further investigation.
Van Leuven said cadets needed to complete three months of ground training and pass exams in India before coming to Whanganui.
“At that point, they are offered a placement letter to attend the flight school and that commits them to the fees and visa requirements.”
Her report said the NZICPA also predicted 100 per cent occupancy of its accommodation properties - Hato Hōhepa (formerly Nazareth Rest Home) and College Estate (formerly Collegiate Motor Inn) - by April.
Van Leuven said Holdings was losing money on the properties and it had looked at potential uses for them until cadet numbers increased.
“It will be important for [the] council to be open to options there,” she said.
Councillor Phillipa Baker-Hogan asked what the occupancy levels were at the two facilities.
Holdings general manager Geoff Evans said Hato Hōhepa had been closed for about two years and all students were at College Estate.
He said College Estate had capacity for 82 people and Hato Hōhepa could hold 50 - or 69 if there were twin shares.
“I think [College Estate] is at about 70 per cent,” Evans said.
“We had an IndiGo surge last year when they opened the borders but it’s diminishing now, slowly.”
Councillor Michael Law said Hato Hōhepa should be opened immediately for emergency accommodation.
“There are 69 beds there and winter is cold,” he said.
“I would urge the chair to think about this over the coming weeks.”
Meanwhile, a shutdown of a Continental diesel engine in one of the academy’s planes has prompted the grounding of all aircraft with that engine - nine in total.
Van Leuven’s report said it was “a serious and disappointing development” with near-term production and cost implications.
She told the committee that was about 40 per cent of the academy’s fleet, but there were still “plenty” of planes to accommodate current cadet numbers.
“At the moment, [the academy is] going through detailed engineering assessments with the manufacturer.
“They are not entirely sure at this stage what the cause is.”
Earlier this year, an academy aircraft made an emergency landing after its nose wheel fell off.
Van Leuven said the landing had been “textbook” and Holdings was confident the academy, from a health and safety perspective, was discharging its duties more than adequately.
“Their abundance of caution over health and safety is one of the reasons those nine aircraft are being grounded,” she said.
“Technically, most of them wouldn’t have to be.”
From July 1, council-controlled organisations (CCOs) such as the pilot academy will report directly to the council rather than through Holdings.
Holdings has been scrapped following a CCO review and a revamped council-controlled organisations and economic development committee takes its place.
Paul Bayly and Andrew Turner have been recruited as independent chairman and independent member respectively.
They will be joined by Whanganui Mayor Andrew Tripe as deputy chairman and four councillors.
NZICPA chief executive Gerard Glanville has been contacted for comment.
Mike Tweed is an assistant news director and 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.