NZAAL set to depart Oamaru Airport

Published on 13 May 2026

Waitaki District Council was informed by NZ Airline Academy Ltd. (NZAAL) that they did not intend to renew their lease at Oamaru Airport in March 2026, and was given official notification of this decision in April 2026.

With NZAAL’s departure, Oamaru Airport will receive the feedback from the Civil Aviation Authority’s review of the 2024 Aeronautical Study and determine which recommendations are still required with the reduction in movements at the airport.

It will also develop a plan to operate in a more commercial manner to attract future tenants – and is open to other flight schools operating at the airport in future.

When NZAAL opened at the airport in 2018, Waitaki District Council offered favourable terms, including a significant discount on charges, with the aim of supporting a new growing business. The NZAAL ambition at that point was to have 50 students per year.

In 2022, the lease was renewed on similarly favourable terms – and in the period since their movements at the airport have multiplied from 10,408 to 87,500 for the 2025 calender year, with student numbers exceeding 200+ in the past year.

This required Council to pay for an independent Aeronautical Study in 2024 to examine safety and management at the airport, and manage increased wear and tear on the facility as a result of increased movements.

With the appointment of an Airport Manager in August 2025 there has been a focus on changing the culture around safety and reporting of incidents at Oamaru Airport. A report on this was presented to the Performance, Audit and Risk Committee of Council on Tuesday 12 May.

NZAAL requested a new lease proposal in 2025 – requesting more land for hangers, and increased access to the airport – including night flying. However, they also requested their landing charges be lowered from the substantially discounted rate they previously negotiated. NZAAL also highlighted the increased cost of doing business in Oamaru, outside of their lease agreement for the airport.

While Council accepts that it offered substantial discounts, or subsidisation, to encourage NZAAL to grow at its inception, its growth and expansion means it is no longer appropriate for such a substantial discount. Whilst the Council is supportive of new businesses and their growth, the Council does not believe it appropriate for ongoing ratepayer subsidisation of a large and successful commercial business.

Following negotiations, NZAAL declined to take up the proposal for a new lease including the expanded land they had requested as part of growing their business.

They also informed Council that they would not be renewing their existing lease, begun in 2022, which was due for renewal in June 2026. Council did not have the opportunity to negotiate the terms of the existing lease before NZAAL informed us they would not exercise their right to renewal.

Council, at NZAALs request, has organised an as yet unsigned agreement to allow them to remain at the airport beyond the end of their lease on 30 June 2026.

Council is currently working on a Commercial Strategy which to ensure that community assets rely less on ratepayer funding and operate in a more financially sustainable manner. The Council sees that there will be economic growth opportunities at the airport that can be achieved commercially and without ongoing subsidy.

Council would like to thank NZAAL for their tenancy at the Oamaru Airport and wish them well in their future ventures.

ENDS

media@waitaki.govt.nz