Update on flight school investment - independent review recommended
Published on 16 March 2026
Whanganui District Council has released an historical overview of its investment in the New Zealand International Commercial Pilot Academy (NZICPA), providing the community with a clear summary of how the academy developed and the factors that shaped its outcome.
The report, which will be brought to the council controlled organisations and economic growth committee, brings together information previously considered by the council and outlines the key decisions, external events and operational challenges that influenced NZICPA from its establishment in 2015 through to the ongoing wind-down of operations that began in 2025.
The report also asks the committee to consider commissioning an independent review of the council’s investment in NZICPA to better understand the decisions made over the last decade and inform governance of future investments.
Mayor Andrew Tripe says releasing the report is an important step in ensuring transparency with the community.
“NZICPA was established ten years ago with the goal of creating jobs, attracting international students and increasing aviation activity at Whanganui Airport. While it did deliver economic benefits for our district during its years of operation, it also faced significant external challenges that changed its trajectory.
“This report helps explain the context in which decisions were made over a number of years, including the impact of events outside the council’s control such as the Covid-19 border closures, the withdrawal of Provincial Growth Fund support, and the closure of 125 Grey Street due to earthquake risk. It’s important that our community can see that history clearly.”
The academy was originally established to help grow aviation activity and generate additional income at Whanganui Airport, which had long been identified as an under-utilised asset. Independent analysis estimated that at its peak the academy contributed around $9.8 million annually to Whanganui’s GDP and supported the equivalent of around 96 full-time jobs across the district.
However, prolonged international border closures during the COVID-19 pandemic significantly disrupted the international student pipeline that underpinned the academy’s business model. Additional challenges included the withdrawal of support for the proposed Advanced Aviation Hub and the temporary grounding of aircraft by the Civil Aviation Authority of New Zealand in 2025.
Whanganui District Council chief financial officer Mike Fermor says the report helps provide a balanced view of the financial impacts and the broader economic context.
“While the direct financial cost to the council has been significant, the academy also delivered measurable economic benefits for Whanganui during its years of operation.
“The purpose of releasing this overview is to ensure the community has a clear understanding of the investment, the circumstances that affected it, and the financial implications for the council.”
The report estimates the accumulated net cost to the council over ten years to be $11 million, depending on the value realised from the sale of remaining aircraft and simulators. This will impact rates by less than 1% in 26/27.
Mayor Tripe says the independent review would help ensure lessons are learned.
“Given the scale of the investment and the level of public interest, it’s appropriate that we take the time to independently review what happened over the last decade and identify what we can learn for the future. What I can see though is that an attempt to stimulate local economic activity got battered by successive external headwinds, so we need to think about how we could have managed those differently and learn from that.”
The report will be considered by the CCO and EG committee on 18 March and has now been made publicly available.