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A Pacific Aerospace P-750 Xstol aircraft flies over Waikato.
Hamilton’s aircraft maker Pacific Aerospace, which employs more than 100 people, is insolvent and has had its Civil Aviation Authority (CAA) certificates suspended.
A spokesperson for the CAA said it received a written notification from the Pacific Aerospace CEO on Wednesday stating that it was insolvent, that it could not meet its regulatory obligations and that it could not meet its obligations under the Civil Aviation Act.
The CAA said Thursday that it had temporarily suspended certificates related to Pacific Aerospace (PAL).
Pacific Aerospace has a large workforce, and the company claims $ 1.3 million in wage subsidies for 119 employees in the first round and 103 employees for the wage subsidy extension.
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In an advisory on Friday, the CAA said the aircraft produced by Pacific Aerospace could continue to fly despite the company’s “financial difficulties.”
The company has been contacted for comment.
An anonymous worker at the company said it was no longer in operation.
Pacific Aerospace jets are a familiar sight in the New Zealand skies, popular for agricultural uses like top dressing and a staple of skydiving operators.
Tom Lee / Stuff
Pacific Aerospace has had its certificates suspended after informing the CAA that it is insolvent.
In July 2007, Pacific Aerospace celebrated the production of its 600th aircraft from the company’s first version dating back to the 1950s.
Two-thirds of the company belongs to Nicsha Farac and a third to a company called Pahl, with several shareholders.
Dean Winter, CAA’s deputy executive director of aviation security, said his thoughts were with Pacific Aerospace customer staff.
“The CAA was briefed on the financial status of PAL on Wednesday and since then we have been working on what the implications are for PAL aircraft operating in New Zealand and around the world,” Winter said.
Pacific Aerospace’s suspended certificates had previously allowed it to design, build and maintain aircraft, it said.
“These certificates require the organization to be in a financial position to meet all of its security requirements, and unfortunately this is no longer the case for PAL.”
Pacific Aerospace aircraft operate in 55 countries.
In 2018, the company was fined $ 74,000 for violating United Nations sanctions for exporting aircraft parts to North Korea.
There have also been suggestions that the company’s jets are being exported for use by the Chinese military.
