Information about Oamaru Airport leasing and safety
Published on 14 May 2026
Council manages Oamaru Airport as a community asset, including leasing to commercial tenants. It is important that Council looks to maximise the economic and community value of the airport to the district whilst balancing this against the cost to ratepayers.
Council therefore negotiates leases with commercial entities on terms which minimises ratepayer funding of the Oamaru Airport, reducing the pressure on our community.
The decision by NZAAL to depart Oamaru Airport has prompted enquiries from the public. As the airport is a community asset we have provided further information below.
NZAAL request for new lease arrangement
In 2025 NZAAL requested that Council propose a new lease arrangement, to include an increased land lease to allow future expansion of the business.
Council proposed a lease, which as requested included 79,000m² of new land at $1.50 per square metre. It also accounted for unleased land which NZAAL are exclusively occupying around the hangers they current lease.
The proposal also included an updated charging structure for chargeable movements at the airport. This charging structure involved a fixed fee of $151,488 ex-GST for up to 60,000 movements, allowing NZAAL room to expand further in future. Any movements above that would be negotiated.
This charging structure included a 25% discount, but better accounted for the impact on the hardstand, taxiway, runways and airport services used by NZAAL – the airports largest user.
From the outset of negotiations NZAAL made it clear that they would leave Oamaru Airport if charges were not lowered from the 2022 level. They also did not accept keeping charges at the 2022 level, or any proposed increase made by Council.
The 2022 charging structure offered an effective 40% discount on standard charges. In that time NZAAL have increased their movements at the airport five times from 10,408 to 50,963 per year.
Their own proposal for a charging structure was a fixed $500 ex-GST per student for 200 students, a small increase on the total they currently pay, but not reflective of increased movements and the impact on and cost to the airport. However this proposal came with conditions listed below.
NZAAL requested Council allow unlimited movements, meaning any wear and tear on infrastructure and running costs incurred by NZAAL beyond the fixed payment would fall on the ratepayer or other airport tenants to pay.
They also requested no restriction on night flying and no restriction on the number of planes in the air. Some requests would have required Council to invest millions of dollars of ratepayer money into the airport, while others conflicted with Civil Aviation safety obligations which Council is responsible for. This was unacceptable to Council.
Far from being commercially unviable, Council had its proposal peer reviewed, which demonstrated the proposal was competitive for airports of similar size and facilities.
NZAAL rejected Council’s proposal, and notified us of their intention to depart the airport. Council did not release this information until NZAAL informed the media of their intention to leave on Wednesday 13 May 2026.
Council was not given an opportunity to re-negotiate NZAAL’s current lease.
At a time when cost pressures on Council have increased, it would be inappropriate to lower the charges for a profitable commercial business using a community asset – placing more of the cost on ratepayers.
Ensuring that the wear and tear at the airport is effectively managed, but that repairs and maintenance are shared appropriately among users based on use is a fair way to prevent ratepayers subsidising it.
Safety at Oamaru Airport
There have been at least three crashes at the Oamaru Airport in the last five years involving NZAAL, none of which were reported to Waitaki District Council as operators are obligated to do under their operating and leasing agreement.
Two of these were recorded by Council following an OIA request to the Civil Aviation Authority (CAA), and the third was reported 12 months after it happened – following a complaint to the CAA for failing to report the incident.
While we acknowledge these were reported to the CAA, as a tenant operating at the airport these crashes should have been reported to Council by NZAAL.
Reporting incidents when they occur allows Council to investigate any damage to the community asset and ascertain if there were any contributing factors to the crash which Council could take preventative action on.
Council takes the culture of safety and reporting at the Oamaru Airport very seriously, and thanks those tenants who do engage with the Oamaru Airport manager and the safety management system to report incidents as and when they occur.
Did Council "hike the charges" as claimed?
No. NZAAL requested a new lease proposal to include more land for expansion and development.
As part of that, Council proposed a fixed payment for up to 60,000 movements per year based on a 25% discount on charges.
As this proposal was not accepted NZAAL have continued to enjoy an effective 40% discount on chargeable movements until the end of their lease.
What could Council have done to keep NZAAL at the airport?
NZAAL made it clear at the outset of negotiations that they would leave Oamaru Airport if charges were not reduced from those agreed in 2022. This would have increased the amount ratepayers provide to maintain the airport, and increase the level at which ratepayers are subsidising commercial operations.
Councils proposal was competitive, and reduced the ratepayer funding required for the airport, and better reflected the impact and cost of NZAAL’s operations on the community asset.
However, it was rejected and NZAAL informed Council of their intent to depart the airport.
Council did not have the opportunity to renegotiate the terms of the existing lease.
Couldn’t Council just get more tenants alongside NZAAL?
Part of the proposal NZAAL requested was for additional land to expand, and Council included land NZAAL is exclusively occupying without leasing too. Their operations have multiplied five times in the last four years, and placed pressure on airport assets and the ability to operate.
Council has had to undertake an Aeronautical Study and submit it to the Civil Aviation Authority for feedback due to the large rise in aircraft movements at Oamaru Airport driven by NZAAL.
That feedback may include further costs for Council for certification and additional safety measures – so bringing on board additional tenants would not solve the capacity, safety and cost issues.
With a busy and growing flying school at the airport, this will restrict the number of other operators interested in locating there.
Can’t Council sell the airport?
No. The airport is designated as airport land by the Government, and if Council wishes to no longer operate the site as an airport – it must be returned to the Crown for their disposal.
Are the drags coming back?
Council still needs to reseal the runway which is planned for 2027/28. Following the reseal there will need to be a period of settling in for the new runway before any drags could return to the airport. We’ll keep you updated.
ENDS
media@waitaki.govt.nz