Westland's Commuter Airline - Coast Air

UPDATED May 2026

Bert Waghorn, an earthmoving contractor from Reefton, had learned to fly in a Cessna 150 with Nash Taurau's Westland Air at Greymouth in the early 1970s. Having completed his PPL he was able to fly to the North Island to pick up parts for broken down machinery, often saving up to a week for it to be delivered by normal means. To help facilitate this he bought a partnership in a Cessna 172. On the 24th of April 1973 he and Frank Hallaran formed Coast Air Charter Ltd which in July 1973 took over Westland Air's air charter licence. In granting the licence the Air Services Licensing Authority said it was satisfied that a locally based air-charter service in the Hokitika area was valuable and in the public interest. Mr Tiller (the Chairman) said the applicant had to establish that the proposed service was financially viable. It had been estimated that the company could achieve between 400 and 450 flying hours annually at the rate of $25 per hour. “We think the proposal just meets the requirements of section 29, and the application is granted with a maximum charge rate of $30 per hour,” he said. 

Bert Waghorn, one of the shareholders, said the aircraft the company proposed, to buy a Cessna Cardinal, was particularly suited to air-ambulance work, estimated to total about 200 hours a year. Catchment Board work was estimated at 30 hours, the N.Z.B.C. work as about 20 hours, scenic flights, 30 hours, and private charter, including flights to race meetings throughout the country, about 100 hours. There was every indication the proposed West Coast beech forests scheme would lead to a demand for the charter service, said Mr Waghorn. He had been told by a forest ranger that 14 overseas firms were interested in the use of the forests. If this were the case, there would be a demand for aerial mapping and surveys. The pilot-manager of the company’s operations would be Mr N. Taurau, who previously operated Westland Air. Ltd. 

Coming from Westland Air into the new Coast Air were a Cessna 172 ZK-CKN, which was soon sold, and newly purchased Cessna 177 Cardinal, ZK-DIH. In early October 1973 Coast Air advertised that it required urgently a competent commercial pilot who would be based at Greymouth. A feature of the aircraft was that it was fitted with stretcher capability and it was used extensively for air ambulance duties.

Coast Air's Cessna 177 Cardinal, ZK-DIH, at Greymouth in April 1975. Photo : A Wooller

In February 1976 Jeff Rees moved to Hokitika as a resident instructor. This was the first time in several years that the West Coast had had a full-time flying instructor. Bert Waghorn bought Cessna 172 ZK-DHQ in late 1976 and this was used by Coast Air for training and charter work until it was sold in late 1978. Jeff Rees covered the Hokitika, Greymouth and Reefton districts. 

Cessna 172 ZK-DHQ operating for Coast Air at Hokitika in 1978. Photo : S Lowe

Greymouth Evening Star, 4 February 1976

In March 1976 Coast Air Charter applied to the Air Services Licensing Authority to add a Hiller UH-12E to its licence.  Phil Metzer owned Alpine Enterprises Ltd and two of his helicopters were to be placed on Coast Air Charter's licence, the first being Hiller UH12E ZK-HDY (c/n 2274). 

Before it was put on Coast Air Charter's air service licence, Alpine Enterprises' Hiller UH-12E ZK-HDY in the Southern Alps in 1973. Photo : G Wandrey 

The following year, in April 1977, Coast Air Charter returned to the Air Services Licensing Authority to add either a Cessna 206 or Cessna 185 to its authorised fleet and to also add a Hughes 369 "500". The application was declined after an objection from Hokitika-based Westland Flying Services which operated a Piper PA32 Cherokee 6.

Meanwhile, in 1974, Vic Alborn began Airwest Maintenance, Ltd, an aircraft maintenance company in Hokitika. In mid-1977 Reefton-born Vic took a shareholding in Coast Air Charter which had established a training base in Hokitika for pilots. The Press reported the demand for pilot training is such that trainees are coming from as far north as Reefton and as far south as Franz Josef. Coast Air Charter are involved in charter work and scenic flying by plane and helicopter. The company is also called upon by the Lands and Survey and Forestry Departments. Together, Coast Air Charter and Airwest Maintenance are planning to provide an increasing scope of services based on Hokitika, covering all aspects of aviation. Vic is a licensed engineer and his assistant, a commercial pilot, also is trained as an engineer and fills in as a spare pilot. Airwest Maintenance is also involved in salvage work of planes and helicopters. 

Following the first cessation of Capital Air Services' flights on the 29th of June 1977 Coast Air Charter applied for a temporary licence to transport passengers, on demand, between Greymouth and Christchurch. The Air Services Licensing Authority declined the application. On the 16th of July the Press reported, a director of Coast Air Charter, Mr John Royds, said today that no reason had been given for the refusal. However, he said that it will not affect the normal operation of the company, which can still charter planes on request. This first interest in operating a more regular air service was a portent for the rise and, ultimately, the fall of Coast Air.

An early Coast Air Charter brochure

In November 1977 Coast Air Charter returned to the Air Services Licensing Authority seeking to add one Cessna 207 aircraft (6 passengers) to their fleet. This time their application was successful and Cessna 207 Skywagon ZK-EJD arrived in Greymouth in February 1978. Coast Air's fleet changed dramatically in 1978. The air charter and training fleet grew with the addition of Cessna 172 ZK-EKF in March 1978. This aircraft was only in the fleet a short time as it was destroyed at Greymouth on the 23rd of July 1978 when it was blown over by a wind gust. Cessna 172 ZK-DHQ was sold in November 1978 being replaced with a newer Cessna 172, ZK-ELH the following month. Also joining the fleet in December 1978 was Cessna A152 Aerobat ZK-ELC which was registered to the Reefton Aero Club but was used by Coast Air. 

Coast Air advertising in one of the West Coast newspapers, ca 1978

Coast Air's Cessna 207, ZK-EJD, at Greymouth on 25 November 1984. Photo : S Lowe

Two of Coast Air's Cessna 172s outside Air West's hangar at Hokitika in 1978. ZK-EKF outside with ZK-DHQ inside. Photo : S Lowe

Coast Air's Cessna 172 ZK-ELH at Hokitika in January 1980. Photo : S Lowe 

Registered to the Reefton Aero Club but painted in Coast Air colours and doing training from Westport to Hokitika, Cessna 152 Aerobat ZK-ELC at Greymouth in 1981. Photo : B Whebell

A profile of Bert Waghorn in the Christchurch Press in June 1978 gave an insight into Coast Air's operations at the time. Now Waghorn is the head of two air charter companies which have loosely combined for the benefit of both — they are Coast Air Charter and Alpine Enterprises. The other five directors are Messrs M. J. Rosanowski, P. Melzer, I Wilson, J. Royds and V. Alborn. All the men are locals, some of them born in Reefton, except for Phil Melzer who flies the company’s helicopter, a three-seater Hiller 12E, and is a former American army helicopter pilot. He now specialises in live deer recovery. Melzer was also a Hughes Corporation test-pilot. Another specialist in the team is Vic Alborn who does all the day-to-day maintenance on the firm’s planes. He is a fully-qualified aircraft engineer and one of the few men in New Zealand who is qualified to assemble helicopters. Coast Air and associates have four fixed-wing planes, all Cessnas, one seven-seater and three four-seaters. They have three full-time pilots and are the only commercial helicopter company, of the four operating in Westland, to have fixed-wing planes in their fleet as well. The main bases for the aircraft are at Hokitika and Reefton, with less activity at Greymouth and Westport. The company use the commercial airports in these places, and as well, Bert Waghorn has his own strip at Cronadun (Reefton) and a helicopter pad beside the Inangahua River at Reefton. The activities of the combined companies are many and varied. Company pilots pick up safari passengers at both Christchurch and Auckland airports, and their clients include tourists, mountaineers, hunters and fishermen. Coast Air fly Lands and Survey Department staff on aerial photography trips, in planes that have special camera hatches for vertical shots, and position huts and do food drops for the Forestry Service. Coast Air is obviously going places and taking a lot of satisfied passengers with them. Their biggest customer is the West Coast Hospital Board. Two hundred patients are ferried over the Alps every year in planes specially equipped for the job, at half the cost of an ambulance. They do the trip in three quarters of an hour. This air-ambulance section of Coast Air operates all over New Zealand. In the future, says Waghorn, the company hopes to buy a $150,000 jet-helicopter for hunting safaris. The need is already there. “Our company is fully Coast-owned and operated,” he says. “We are here to develop the area, using Coast money and initiative.”

In August 1978 Coast Air Charter applied to replace the Hiller UH12E that Alpine Enterprises Ltd operated with a 'jet-helicopter' Hughes 500. Hughes 500C ZK-HMQ was registered to Alpine Enterprises Ltd in December 1978.

Alpine Enterprises' Hughes 500C ZK-HMQ which operated on Coast Air Charter's air services licence at Hokitika in January 1979. Photo : S Lowe

A West Coast feature in the Press on the 14th of June 1979 reported on Coast Air Charter's fixed winged and helicopter tourist options...  Helicopter flying is hard to beat on the West Coast. It is an experience fatally different from any other. Perched on the brink, the sight of tree tops disappearing at your feet, a ribbon of coastline, a rocky gorge, gold excavations, the scars of another State forest road, a town, a lake, more bush — all the way to Hokitika. I guess the beauty of it all is that the pilot is in control and there is nothing for you to do but. gaze out through the wide window dome at the panoramic view all round. The Coast Air Group operates a wide variety of popular tourist and recreational trips on a charter basis up and down the West Coast. Coast Air Charter, Limited, a member of the group, operates fixed-wing planes from airport bases at Greymouth and Hokitika, incorporating in many of its tours the use of a Hughes 500 helicopter for more mountainous areas. The helicopter belongs to Alpine Enterprises, Limited, another member of the group based in Reefton. The fixed-wing planes range from a Cessna 152 aerobat flying trainer to a seven seated Cessna 207 Skywagon which is used for ambulance work, aerial photography, tourist trips and freight. Tourist trips in the area include flights to Lake Brunner and the gold mines in Reefton, the alpine areas in the Mount Whitcombe area for views of the glaciers. For flights of approximately one hour and thirty minutes to forty-five minutes return the vicinity between Greymouth and Mount Cook is popular. Other areas for flights include Franz Josef or the Fox Glacier, Milford Sound, Queenstown, Manapouri, Karamea, and the Heaphy Track. Some climbing enthusiasts are delivers and the Copland Pass landing if requested. The company also works in with a safari company, Wildlife Enterprises, in Christchurch picking up overseas parties of tourists for a week or more and flying them into Reefton or Hokitika where they transfer to the Alpine Enterprises Hughes 500 helicopter for fishing, hunting and photography expeditions. The helicopter has been installed with a Helicopter Stretcher Kit, specially designed by the Howard Hughes Corporation. This will enable the pilot Phil Melzer, to be fully equipped for Search and Rescue operations in the mountains and bush. Two stretchers can now be fitted in the rear compartment of the helicopter and it is the only Hughes 500 in New Zealand with the ambulance equipment.

The Press, 14 June 1979

In September 1980 Air New Zealand announced a proposal to reduce its flights between Westport and  Wellington and to cut completely its flights between Westport and Hokitika thereby cutting the connection between Westport and Christchurch. In December 1979 Westland Flying Services had introduced a Cessna 402 service from Hokitika and Greymouth to Christchurch twice a day, three days a week. In the light of the Air New Zealand proposal Coast Air Charter announced plans to start daily feeder services to Westport. The company announced that after the arrival in Greymouth of the morning Westland Flying Services flights from Christchurch a Coast Air plane would fly passengers to Westport. The same aircraft would later in the day fly a return service between Westport and Hokitika to connect with the Air New Zealand flight to and from Christchurch at Hokitika. The plane would then fly back from Westport to Greymouth to connect with the Westland Flying Services flight to Christchurch. As things transpired the revised Air New Zealand service saw Westport linked to both Wellington and Christchurch via Hokitika on Mondays Wednesdays and Fridays. Coast Air Charter did offer a feeder “air taxi” service linking Westport with the national airline on the other days of the week. There was, however, little interest in the service, the people of Buller being more interested in the reinstatement of a daily Air New Zealand service.

The Press 17 June 1981

The company’s next attempt to establish a scheduled service was in December 1983 when the company applied to Air Services Licensing Authority to operate a scheduled air service between Christchurch and Greymouth with a De Havilland Canada Twin Otter. John Royds, managing director of Coast Air Charter, was reported in the Press on the 14th of December saying, at present passengers flying into Greymouth had to stay overnight. “We hope to be able to get passengers in and out in the same day. Also, our flights will be timed to connect with departures to other centres,” he said. Mr Royds said that freight would be an important part of the business, especially material that had to be transported quickly. Timetables and fares have not been established but the price of seats is expected to be similar to that charged by Air New Zealand. Mr Royds said that it was hoped to install lighting at Greymouth Airport and this would allow for the later arrival of flights during winter. The company is negotiating to buy a De Havilland which is in service in the Yukon, in the far north of, Canada. Mr Royds said that the company selected the De Havilland because of its versatility and outstanding record.

At the hearing on the 21st of December 1983 the Authority was satisfied that the proposed service was necessary and desirable, it was not satisfied that the company had the financial ability to run the service. The Press reported on the 23rd that the Authority had earlier been told by a private chartered accountant acting for Coast Air Charter, Mr P. T. Heaphy, that it was intended to float a public company with a shareholding of $1 million. The Westpac Bank had also agreed to put up a further $1 million, Mr Heaphy said, but this depended on the company raising its share of the capital, the cash flow, and security offered. Mr Heaphy said he had had discussions with a merchant bank in Wellington and with a big public company which was prepared to become ana investor. He provided the names of these companies to the Authority in confidence, as negotiations had not yet been finalised. He said the merchant bank would be prepared to underwrite the company. A balance of Greymouth and outside shareholding was expected to be 50;50, Mr Heaphy said, and he expected strong interest from the West Coast.

The company is proposing to offer two return flights across the South Island daily, Monday to Friday, and one return service on Saturdays and Sundays. Mr Ellis called a number of witnesses who said that they were inconvenienced by the timetabling of the present flights which meant that it was not possible to travel from the coast to Christchurch and back in the say day, or to travel through Christchurch to other centres and arrive there in time to do business the same day. 

The aircraft proposed for the service was at present in service in Canada. It was a 1980 model but would be fitted with new engines. A $l0,000 holding deposit had been placed on the aircraft, Mr Heaphy said. The managing director of Coast Air Charter, Mr J. E. Royds, said the idea for the service had first been proposed when it was feared Air New Zealand might cut some provincial routes, though this had not been the case. The company’s chief pilot, Mr R. B. Riddell, said that the company would be putting $l0,000 towards runway lighting and a wind sock at Greymouth airfield. 

The hearing was adjourned to the 22nd of February and in this time the company set itself to furnishing the evidence. However, in the interim, new legislation in the form of the Air Services Licensing Act of 1983 had come into force. This meant that Coast Air Charter had to replace its existing charter licence by the 31st of March 1984. 

However, the resumed hearing on the 22nd of February 1984 was cancelled on legal advice from the Solicitor General. The Press reported, Last year new legislation - the Air Services Licensing Act, 1983 - came into force on November 30 and the former Authority, which had sat under the Air Services Licensing Act, 1951, ceased to exist. There was provision in the new legislation for the old Authority to continue for one more month, to clean up outstanding business, and this it had tried to do for Coast Air Charter at its December hearing. When its hearing had had to be adjourned to February, the Ministry of Transport had asked the Solicitor General, Mr D. P. Neazor, for a ruling on whether a February hearing would have any standing. Mr Neazor has now ruled that in terms of the Acts Interpretation Act, 1924, it could not - and so the hearing was cancelled. 

The firm's problems have been compounded by changes in the new legislation on the type of licence which may be issued. Coast Air Charter must replace its existing charter licence by March 31, 1984, or go out of the charter business. In the new legislation, it would get as a replacement licence a category C licence, for up to 2500kg take-off weight. But in its application for licence to charter from Christchurch to Greymouth it had said it would use a Twin Otter aircraft. To fly this for charter it would need a B licence between 2500kg and 7000kg. It cannot secure a B licence by renewing its existing licence. Life was made more difficult for the firm by the changes that occurred to the new legislation as it passed through Parliament last year. The first draft of the legislation had only two categories, with the B category simply being up to 7000kg; and so enabling Coast Air Charter to qualify for the Twin Otter under its existing licence. But, in its final form, the new legislation had three categories, and the one held by Coast Air Charter was no longer suitable for a Twin Otter. 

The Ministry said the firm had found out only a day before the Authority went out of existence that its licence could not be transferred forward at March 31 to qualify it to charter a Twin Otter. To overcome the problem, the Authority had agreed to hear the application in December, but had not been able to complete its hearing. Under the new legislation, a new Authority will be formed after April 1. Its members are not yet known. The Ministry has told the firm it has three choices open to it in theory: The new Authority may decide, or be advised, that it has the power to continue the hearing adjourned by the old Authority. The firm may apply for and secure a new C licence by March 31, so it can stay in the charter business in the meantime, and apply as well for a temporary licence. The firm may apply for a B licence to replace its C licence after March 31, but the new Authority would need at least six weeks to hear and approve any application and the firm would be out of business until that new application was granted. The Ministry of Transport expects the firm to choose the second option, but the legal situation is still far from clear. 

In July 1985 Coast Air Charter Limited successfully returned to the Air Services Licensing Authority seeking to conduct a Category “B” air transport service between Greymouth and Christchurch and return with a fleet of one De Havilland DHC-6 Twin Otter, one Cessna 207, one Cessna 185, one Cessna 177, two Cessna 172s and one Hughes 369C. Coast Air had earlier received approval to operate Bert Waghorn's Cessna A185F Skywagon ZK-DPG as part of its authorised fleet. The two Cessna 172s being used at this time were ZK-EHO, which had been in use since February 1983, and ZK-DFY, which was owned by Bert Waghorn. ZK-DFY was used to replace Cessna 172 ZK-ELH which was damaged in an incident in the Rail Valley on the 12th of March 1984. The Cessna 152 Aerobat, ZK-ELC had departed from the fleet, having been sold to the North Otago Aero Club in May 1982.  

Bert Waghorn's Cessna 185 ZK-DPG which was used by Coast Air at Greymouth on 8 April 1985. Photo : S Lowe

A couple of Coast Air Cessna 172s at training duties at Hokitika...  ZK-EHO on 18 March 1984. Photo : S Lowe

...ZK-DFY on ( December 1984. Photo : S Lowe

Cessna 177 Cardinal wearing the Coast Air logo at Hokitika on 23 April 1984. Photo : S Lowe

In August 1985 the company obtained the necessary licence and had raised the capital for the hire-purchase of a De Havilland Canada Twin Otter. At this stage the company hoped to start services in mid-October with twice daily return service between Greymouth and Christchurch on weekdays with a single return flight on Saturdays and Sundays. The company also planned to operate a southern service from Greymouth to Franz Josef and Mount Cook to increase the aircraft's utilisation between the morning and late afternoon trans-alpine services and it was envisaged this would form an attractive connection and compliment to the Trans-Alpine Express train service to Greymouth. The aircraft was also to be available for private charter and for contract freight flights. The Mayor of Greymouth, Dr Barry Dallas, the Press, "The present enterprise has been thoroughly researched and has a healthy financial backing. "The timetables will enable Coasters to do same day business in either Auckland or Invercargill. "Throughout New Zealand, aviation has boomed at this level since deregulation and it is only timely that the Coast should now be in on the benefits." 

The October start-up date was pushed back to the 9th of December due to delays in sourcing a Twin Otter. On the 22nd of November 1985 a US-registered De Havilland Canada DHC-6-300 Twin Otter, N250CM (c/n 250), arrived in Ashburton for Coast Air. This particular aircraft began life in 1969 as CF-JCS being operated by Northward Aviation Ltd of Edmonton in Alberta, Canada. In 1976 it was sold to another Edmonton operator, Gateway Aviation Ltd, its registration changing to C-FJCS in 1979 before being sold in Alaska. It took up the US registration N250CM on the 26th of October 1979 being registered to Puget Sound Tug & Barge, Anchorage, Alaska. In June 1982 Crowley Maritime of Anchorage started operating Crowley Maritime obtained it in 1979 and used it for supplying their operations on the Alaskan North Slope oilfields as well as flying ice flow patrols for shipping until late 1985 when it was exported to New Zealand. Canadian pilot Jim York and Russell Lewis, an engineer from Ashburton, flew it on its ferry flight. Departing Anchorage it flew to Oakland, California, via Northway (Alaska), Whitehorse (Canada), Calgary (Canada), Spokane (Washington, USA), and Red Bluff (California, USA). Then, fitted with eight ferry tanks which extended its range from 4 hours to 20 hours it set out across the Pacific via Honolulu,  Pago Pago and Auckland to Ashburton. Plans to land in Greymouth were scotched by poor weather. In Ashburton local aircraft maintenance facility Ashburton Aviation Services refitted it in its passenger configuration and prepared it for its New Zealand certificate of air worthiness ahead of pilot and route training. It was placed on the New Zealand register as ZK-OTR on the 11th of December 1985.

The De Havilland Canada Twin Otter in its American registration N250CM the day after it arrived in New Zealand at Ashburton on 23 November 1985. Photo : S Lowe 

The 9th of December 1985 start-up date was rescheduled to the 9th of January 1986 but once again problems beset the airline. The day before the Press reported, The new trans-Alpine air service between Greymouth and Christchurch will be launched tomorrow. Two commercial flights and one V.I.P. flight will be made aboard Coast Air's new 20-seat De Havilland Twin Otter. The inaugural flight will be commercial and will leave Greymouth at 7 a.m., arriving in Christchurch 45 minutes later. The aircraft will return immediately for the V.I.P. flight, which will carry a specially invited group for a lunch and reception in Christchurch. The special flight will return to Greymouth at 3.15 p.m. and the second commuter flight will be made at 4.40 p.m. 

The Press, 19 December 1985

Now registered as ZK-OTR, the Twin Otter at Christchurch during training in December 1985. Photo : S Lowe

The Greymouth Evening Star on the 10th of January reported on how the airline's plans had been thwarted and what actually happened... Coast Air's new commercial trans-alpine service between Greymouth and Christchurch has problems to overcome before it can begin regular commercial operations. This became clear today when a spokesman for the Civil Aviation division of the Ministry of Transport in Christchurch revealed that the airline did not have the air service certificate which allows it to fly the Twin Otter commercially. The Category B air transport licence was also in abeyance, said the spokesman, while waiting for the difficulty over the air service certificate "to be sorted out." The air service certificate authorises a company to fly a particular air service, while the air transport licence pertains to the operation of particular aircraft. The spokesman said, in reference to the stated problem of the company not being able to fly the aircraft under instrument flight rules (IFR), that every pilot on this sort of commercial flight was required to be rated for instrument flying. In addition a pilot must have had training in checking to the standard required by Civil Aviation.

At least one of Coast Air's pilots has not completed his regulatory training and checking, claimed the spokesman. The cancellation of yesterday's special VIP flight to Christchurch, and of yesterday's four commercial runs between Greymouth and Christchurch apparently arose from the resignation of Coast Air's chief captain. Captain Fred Holtkamp resigned late on Wednesday evening. Coast Air's inaugural trans-alpine flight was scheduled for yesterday morning. Although a new chief captain to replace Mr Holkamp has been hired, he is not expected to begin work until Monday. Captain Phil Cooper, a training captain on Twin Otter aircraft, with a wealth of experience in flying the same type of craft in Africa, must familiarise himself with the route and update his authorisation to fly Coast Air’s new aircraft before the necessary air service certificate can be obtained.

The problems with obtaining the air service certificate also relate to Mr Holtkamp's resignation, and the resulting changes in crew and operational management, said the civil aviation spokesman. Coast Air may not accept fares on its trans-alpine flight until all regulatory training has been completed, and an air service certificate and air transport licence is obtained. Civil Aviation was not trying to hold back Coast Air, emphasised the spokesman. "We want to see the thing get going. But we are doing the best we can to ensure that operational standard is maintained to as high a possible standard as is economically possible." Coast Air general manager, Mr John Royds, of Greymouth, was not available for comment today, Although Coast Air's curtain-raiser to the new trans-alpine service - the VIP flight to Christchurch was cancelled at 11 a.m. yesterday, the 20 special guests were able to sample the flight service with a short scenic flight. 

The imported, all weather de Havilland Twin Otter handled well in cloudy skies over central Westland. The 20-minute run along Westland's coastal strip, from Greymouth to Hokitika, and back as far as Point Elizabeth, was smooth and controlled under the guidance of pilots Dennis Hoskings and Bruce Riddell. Aboard were some of the West Coast-owned and ·operated company's major shareholders, and its chairman, Mr Bert Waghorn, of Reefton. The new service aboard the 20-seat, jet-prop Twin Otter has been fraught with teething problems, and yesterday's postponements and cancellations were not the first. Various difficulties had earlier led to Coast Air pushing back its inaugural flight dates by several months. Despite the cancellation of both yesterday's and today's scheduled commercial flights, and apparent authorisation problems over further scheduled flights, the Twin Otter was blessed during a short initiation ceremony at Greymouth Airport. The Rev. Father G. Creagh, parish priest of Greymouth, gave the blessing. After the scenic flight, which appeared to impress the VIP passengers, the Twin Otter was toasted with champagne at a luncheon in Greymouth. Coast Air's Twin Otter is one of 880 flying the world over. It is one of the most numerous makes of aircraft in airline service, operating with a minimum of ground support facilities. It is flown by two pilots. Coast Air has engaged five. 

The twin-engined Twin Otter is being promoted as an all-weather aircraft. It has full de-icing equipment. Each of the pilots must be rated to fly on instruments (lFR) - essential in bad weather. Both passengers and freight will be carried, and the areas are interchangeable, with a freight capacity of 800lbs. Coast Air began in 1973, and spent three years researching the commuter run. It currently operates five aircraft. A number of proposals to complement the trans-alpine run are being studied, and a Greymouth-Glacier-Mt Cook tourist flight connection is under careful consideration. 

After the blessing of the Twin Otter at Greymouth on 9 January 1986, in the front row, Fr Gerard Creagh (left) Dr Barry Dallas, Mayor of Greymouth (second from right). Source Greymouth Evening Star 

No quite "this morning!" - The Press, 10 January 1986

After all the setbacks Coast Air's scheduled air service finally got airborne on the 17th of January 1986. At 7.00am, under the command of Captain Phil Cooper, the De Havilland Canada Twin Otter, ZK-OTR, named “The Province of Westland”, operating Coast Air flight 71 departed Greymouth for Christchurch  with six passengers. The return flight arrived back in Greymouth at 9.15am. The afternoon service left Greymouth at 4.40pm, returning at 6.30pm. A Coast Air spokesman told the Christchurch Star, “We are confident there is a demand for the service judging from the inquiries over recent months and weeks.” 

Coast Air's first timetable, effective to the 11th of April 1986

In the week following the first flight Les Bloxham, the travel editor, of the Christchurch Press reviewed the service...

Coast Air, Flight No. 12 Christchurch to Greymouth.
Wednesday, January 22.
Scheduled departure: 8.30 a.m.
Actual departure: 8.31 a.m.
Est. flight time: 45 min.
Actual flight time: 54 min.
Seating capacity: 20.
Seats filled: 4.

Check-in procedures, handled by Newmans Air, were done efficiently and in a friendly manner. A boarding call was made at 8.23 a.m. and passengers were directed to the de Havilland Twin Otter parked at Gate 2. The aircraft has 20 seats made up of five rows of one plus two, one row of two seats, and a row of three at the rear. The seats are basic and narrow with limited leg room, but they are adequate for such short duration flights. (Incidentally, the best seats as far as plenty of space is concerned are the three at the rear.) Passengers were personally welcomed on board by one of the pilots who also gave the safety briefing. Biscuits with pate and packets of fruit juice were available on a self-help basis. As a non-smoker in a relatively confined area I was pleased by the prohibition on smoking for the duration of the flight. Smokers unable to survive without lighting up for 45 minutes might not be so happy. The noise level was tolerable - in fact, this Otter was a lot quieter than others I have flown in around Fiji and Canada. Twenty-five minutes after take-off we were at an altitude of 10,000ft and crossing the Main Divide slightly to the south of Arthur's Pass at 170 knots (183 miles an· hour). Ten minutes later we were overhead Hokitika. (A dense layer of cloud on the West Coast forced the pilots to use I.F.R. (instrument flight rules) procedures and to home in on the Hokitika beacon before starting their let-down along the coast to Greymouth.) We landed on Greymouth's sealed strip at 9.25 a.m. The flight was smooth and pleasant. In clear weather a feature of this service will be the magnificent mountain scenery flown over at comparatively low altitudes. Unfortunately, viewing is impaired at present by the badly crazed and scratched state of most of the windows. Shooting satisfactory photographs would be impossible. (I was told later that Coast Air is considering replacing the damaged panes with new glass.) Overall, this new link between Greymouth and Christchurch should prove popular with businessmen and tourists alike. Having spent four hours driving the route through Arthur's Pass the previous week, I am now in no doubt about the way I will prefer to go in future.  

A few weeks later, on the 21st of February, I flew on the afternoon Coast Air flight 74 from Christchurch to Greymouth. The Twin Otter was full, and I was told this was the first time it had had a full load. The aircraft took an hour flying into a punchy nor-wester with the plane letting down on the Hokitika beacon before breaking visual and flying VFR up the coast to Greymouth. 

Coast Air's De Havilland Canada Twin Otter ZK-OTR at Greymouth in from of the Aero Club building which served as the terminal on 23 February 1986. Photos : S Lowe

From the beginning Coast Air needed more work for the Twin Otter than the flights between Greymouth and Christchurch. From the beginning the company had planned to operate a southern service from Greymouth to Franz Josef and Mount Cook to increase the aircraft's utilisation. These plans had been thwarted by the Franz Josef airstrip being washed out in a flood on the 21st of December 1984 and by early 1986 the aerodrome was still not reinstated. In early 1986 Coast Air was approached by Timaru interests who wanted a direct air service to Christchurch and this offered a possibility for the Twin Otter's utilisation.

On the 25th of March 1986 several of the company's directors flew to Timaru in the Twin Otter for talks with airport authorities and travel agents. The following day the Press reported John Royds, Coast Air's managing director saying that they had gone at the invitation of Timaru interests, since that city did not have a direct air service to Christchurch. "We cannot give the very best times, but we believe something useful can be worked out. There is obviously interest in Timaru for such a service," he said. During winter the Coast Air Twin Otter will be kept in Christchurch overnight instead of at Greymouth. The first flight will be timed to reach Greymouth just after daybreak because Greymouth Airport does not have landing lights. The aircraft will return to Christchurch with passengers and be available for flights to and from Timaru before the last afternoon flight to Greymouth and return Christchurch. This service will keep the aircraft flying throughout the day. The Greymouth-Christchurch service had been running for two months, and support was growing, said Mr Royds. 

Coast Air's De Havilland Canada Twin Otter ZK-OTR at Greymouth on 31 March 1986. Photo : S Lowe

On the 6th of April Coast Air announced it would offer a twice weekday air service between Timaru and Christchurch from the 21st of April 1986. Coast Air's manager, Mr John Royds acknowledged in the Press that the fledgling airline was entering uncharted waters. The company has been pleased with patronage on its Greymouth-Christchurch service since it started in January but he said there was no way the demand on the Timaru service could be estimated accurately. The 40-minute flight will leave Christchurch each day at 9.45am and 12.20pm and will leave Timaru at 10.50am and 2.35pm. Fares will be $59 one way with half fares for children. Mr Royds said the timetable was the best that could be offered with the company's sole 20 seater Twin Otter committed to the Greymouth-Christchurch service. The timetable would give South Canterbury many connections with other centres from Christchurch and would also allow people to fly into Timaru for day business. Mr Royds said the company would be considering further expansion. Flights to and from Dunedin and the use of a second aircraft would be considered. 

The Press, 17 April 1986

Coast Air began its winter schedule on the 21st of April 1986. For Greymouth the biggest change was the move to base the Twin Otter in Christchurch. The Twin Otter left Christchurch for Greymouth at 7.15am arriving in Greymouth at 8.05am. The return flight left at 8.25am to arrive in Christchurch  at 9.15am. The new schedule meant business people from Auckland or Wellington couldn't connect with the morning Coast Air service to Greymouth. The morning return flight to Christchurch did not arrive back until 9.15am and leaving West Coast business people with inadequate time to fly to Auckland or Wellington for business and return on the same day.

The 21st of April also saw the first Timaru service. A plane load of invited guests was flown from Christchurch to Timaru for the inaugural flight. The Timaru schedule was also to prove inadequate for business traffic. The southbound flights out of Christchurch left Christchurch for Timaru at 9.45am and 12.20pm  and the northbound flights left Timaru at 10.50am and 2.35pm. 

Coast Air's first flight to Timaru on the 21st of April 1986. Source : The Press

Coast Air's winter timetable with the Timaru flights, effective 21 April 1986

Not surprisingly the Timaru service was not popular and it ended on the 26th of May 1986. Coast Air's manager John Royds said poor patronage forced the company to end the service, The company's 20-seater aircraft would still be available for charter in South Canterbury, and while Mr Royds regretted the trial service had not been a success, he felt that at least his company had made itself known in the region.

The Press, 17 June 1986

On the 19th of June the Nelson Evening Mail reported that Coast Air was planning to introduce a service between Nelson and Christchurch. After the collapse of Air Albatross in December 1985 Air New Zealand was operating a single Fokker Friendship service between the two centres. Goldfields Air had started a twice a day weekday service on the route on the 1st of May 1986 using 8-seat Piper Navajo ZK-JGA. Coast Air director Doug Truman said, Details of the timetable and fares have not been finalised. Presently Coast Air has two Christchurch-Greymouth return flights each day. Flights to Franz Joseph Glacier also had to be finished after floods which washed away the runway. This meant "down time" for the airline - so it looked toward Nelson to fill the gap. "We prefer to stay in the South Island and feel there is a close community of interest between the Coast and Nelson,” said Mr Truman. Before Air Albatross folded it proved there was a demand for a strong direct link between Christchurch and Nelson, he said. Now this demand was not being fully met and Coast Air was moving into the gap in the market. 

A later report in the Greymouth Evening Star indicated that Coast Air was facing financial difficulties. Reports that Coast Air would fold at the end of the month were denied yesterday by the chairman of directors, Mr Bert Waghorn, of Reefton. Mr Waghorn said that quite the opposite was the case. He said that, as from July 7, the twice daily Greymouth-Christchurch service would be supplemented by a twice daily run between Christchurch and Nelson. Mr Waghorn said Coast Air's east-west flights were doing well but the company was still making a loss because its proposed service to tourist spots further south was not possible until the Franz airstrip was rebuilt. As a result, the company had only half the revenue budgeted for. "We're running at a loss and things look grim," he said. 

On the brighter side, Mr· Waghorn noted that Air Albatross had been making five return trips a day between Nelson and Christchurch with an 82 per cent load factor before it went into receivership." All we need is 50 per cent to make a profit." He admitted that Coast air's Christchurch-Timaru service, tried at the request of Timaru interests, "cost a heap of money" before it was abandoned. "We carried only six passengers between Timaru and Christchurch in one week of the service," he said. "It goes to prove that you need some sort of physical barrier between two centres before an airline can work."

The Press, 15 July 1986

On the 20th of July 60 Nelson guests were taken on a Twin Otter courtesy flight over Mount Arthur. "We're extending to Nelson because this area and the West Coast are compact, self-sufficient regions that must look after their own needs and development and because there's a natural compatibility specially in the areas of transport and tourist development," said company director Mr Doug Truman. Most of Coast Air's 23 shareholders live on the West Coast. 

The Nelson service began the following day on the 21st of July 1986 with Twin Otter ZK-OTR flying Coast Air flight 61 from its new Nelson base to Christchurch. It then flew a return service from Christchurch to Greymouth before returning to Nelson. The same pattern was repeated in the afternoon. Coast Air's schedule saw the two return weekday flights departing Nelson for Christchurch at 7.20am and 2.20pm and leaving Christchurch for Nelson at 11.20 a.m. and 6.20 p.m. Coast Air’s sales manager, Ms Prue Madden, said the times were spaced between existing Air New Zealand and Goldfields flights, and meant the Christchurch-Nelson link was well served throughout the day. “We believe there is demand for another service, and have organised our schedule to provide the maximum benefit for travellers,” she said. Coast Air offers an off-peak fare of $75 one way on the 11.20 a.m. and 2.20 p.m. flights. The normal fare is $90. Coast Air's Twin Otter was not fast, with a scheduled flight time of 75 minutes as opposed to 50 minutes in Air New Zealand's Friendships.

The basing of the Twin Otter in Nelson meant the Greymouth flights became less effective for West Coast business travellers. The morning flight out of Greymouth now left at 10.05am as opposed to 8.25am with the return flight from Christchurch to Greymouth leaving at 4.00pm and so the service became totally impossible for passengers wanting to do a day's business in Wellington or Auckland and only marginally acceptable for passengers wanting to do a day's business in Christchurch. On a more positive note passengers from Auckland and Wellington could connect with the morning flight from Christchurch to Greymouth at 8.55am and then return home the same day with a 5.10pm departure from Greymouth.

The introduction of the Nelson service also a change in the Coast Air titles and the removal of the Coast Air logo from advertising and timetables.

The Nelson service in the Coast Air timetable effective 21 July 1986

Within days of Coast Air starting on the Nelson-Christchurch route Goldfields Air ended their service. Coast Air chief executive Mr Phil Heaphy told the Nelson Evening Mail, the company was currently carrying 40 per cent loadings and needed to boost that to about 65 per cent to make the route economically viable. The withdrawal of Goldfields Air would certainly help Coast Air, he said. Coast Air would not have begun the new service if it had not been confident that it would be successful, Mr Heaphy said.

The Press, 12 August 1986

In September 1986 the Christchurch Mid-Week Mail ran on piece on Coast Air's services... Coast Air, the pioneer airline offering the only twice-daily air link between Christchurch and Greymouth, is really up and flying after its eight months' establishment and growth. The original timetable ran two trips a day between Greymouth and Christchurch, with the aircraft overnighting at Greymouth. For six weeks now it has offered each week day a shuttle service Nelson-Christchurch-Greymouth-Christchurch-Nelson-Christchurch-Greymouth-Christchurch-Nelson. That is a lot of flying for a small firm whose total passenger fleet is one De Havilland Twin Otter Series 300 jet prop aeroplane. Some nine hours are spent in the air covering 1680 kilometres. Fares and flying times are $74 and 40 to 50 minutes to Greymouth, $90 and a little over an hour to Nelson. 

The airline employs five pilots, while maintenance is carried out at night and weekends by Newmans Airways Christchurch facilities. 

The plane is perfect for the style of operation, carrying up to 20 passengers with their luggage and freight and requiring low maintenance with its rugged construction and fixed undercarriage. It is sturdy and reliable and the security of two pilots and twin turbine engines appeals to the safety-conscious crossing the mountains. The scenic qualities of the flights are a bonus for passengers. At 10,000ft the Main Divide seems only inches below and the Nelson route takes in the Wairau Valley and Rainbow ski-field. 

Strong financial backing from the Greymouth business community and Christchurch capital started Coast Air. A Christchurch arrival by 10am and return at 5pm particularly suited Coasters coming over the "Hill" for a meeting or a day in the city. Since the Nelson route has operated an hour is lost at each end of this day which Coasters are not so happy about. But they can now get through to Nelson and back before nightfall and Cantabrians and tourists can spend a longer day in Greymouth, even visiting the glaciers or Punakaiki at a pinch. Even more significant perhaps, Auckland businessmen can leave home at 7am to spend a full day in Greymouth and be back home that evening. A growing number are doing so. The commuter service has been a boon to businessmen, visiting surgeons and judges and civil servants travelling in both directions, but the potential contribution to West Coast tourism is particularly valued by the Coast community. 

Greymouth Town Clerk Peter Moreton enthuses over Coast Air's fitting in with the borough council's aims and points out that the council cooperated readily by extending the apron at the Greymouth airport at a cost of $23,000 to take the Otter. Landing lights to enable night operation are an obvious further early need. "The West Coast has a growing dependency on tourism for its prosperity," says Mr Moreton. "Overseas visitors with a free day or two in Christchurch can spend a day on the Coast and be, back in time to rejoin their tour party." The West Coast Tourist Council, whose chairman is Greymouth Deputy-Mayor Russell King, also welcomes the Coast Air operation. 

"The regular passenger flights began with the purchase of the Otter," says Coast Air chief executive Phil Heaphy. Until January this year Coast Air operated four single-engine light planes on a charter basis. These are still used for charter work as is the Otter at the weekends. It is particularly suitable for transporting sports teams to away venues. "Further expansion can be expected," predicts Mt Heaphy. "We continue to be on target with our original concept."  

Coast Air's repainted Cessna 177 Cardinal ZK-DIH at Hokitika on 22 September 1985. Photo : S Lowe

Despite the positive words the concept was struggling. Goldfield Air's early withdrawal had really not improved the economics of the Twin Otter operation. The Twin Otter's STOL performance was ideal for operating in and out of Greymouth’s short runway but in all other respects it was the wrong aircraft. Its fixed undercarriage made it slow and it's lack of pressurisation on both routes made it an undesirable option for the travelling public. With the aircraft Nelson-based, the timetable to Greymouth didn't suit local business traffic. Despite the best efforts of Coast Air the airline averaged only 7.6 the passenger per flight resulting in incurred losses of around $1 million. A major rethink was called for and the decision was made to replace the De Havilland Canada Twin Otter ZK-OTR. It made its last scheduled flights were on the 24th of December 1986 under the command of Captain Bruce Riddell and First Officer M Clarkin flying the afternoon Nelson-Christchurch-Greymouth-Christchurch Nelson service. After Christmas the Twin Otter positioned to Ashburton where it was prepared for sale and eventual departure for Vanuatu.

Reporting on the move, an article in the Press on the 27th of December 1986 said, The Greymouth-based airline, Coast Air, will cut costs. It has decided to sell its 20-seat de Havilland Twin Otter which it has used on its Greymouth-Christchurch-Nelson link and from yesterday has replaced it with an eight-seat twin-engine Piper Navajo. The Twin Otter was seldom fully booked. A spokesman for the airline, Mr Harry Kitchin, said that the introduction of the smaller aircraft could lead to a timetable revision early in the New Year. By offering an earlier start from Greymouth, it would allow better connections to northern centres from Christchurch, and allow longer stays for people on business in both Christchurch and Wellington with returns the same day, saving accommodation costs. Coast Air leased eight-seat Piper PA-31-310 Navajo, ZK-JGA, the same aircraft Goldfields Air had previously operated between Nelson and Christchurch, as their new aircraft. ZK-JGA became the only aircraft that carried the new Coast Air script on its tail

 *** DID THE SCHEDULE CHANGE WITH THE FASTER AIRCRAFT

In Greymouth ahead of taking over from the Twin Otter, Coast Air's leased Piper PA31-310 Navajo at Greymouth on 21 December 1986. Photo : S Lowe

The Navajo, like the Twin Otter, was based in Nelson and operated a Nelson-Christchurch-Greymouth return service both in the morning and in the late afternoon early evening. However, increased competition was brewing. In early March 1987 Pacifica Air announced its intention to introduce flights between Nelson and Christchurch with a pressurised Beech King Air 200. Confronted with this news Coast Air cut its Nelson-Christchurch service with the last flights being flown on this route on the 27th of March 1987. 

Coast Air's decision to concentrate on its Christchurch-Greymouth link was essentially a good one but the airline still didn't get it quite right. The Navajo was again based in Christchurch and focussing on the West Coast, from the 30th of March 1986 offered three flights each weekday across the Alps to Greymouth. The first flight out of Christchurch was again at 7.30am which once again didn't enable business people from Wellington or Auckland to connect with the morning service to the Coast. The earlier departure out of Greymouth offered better connections for West Coasters but it was still not as good as when the Twin Otter was based in Greymouth.  

Coast Air timetable effective 30 March 1987

On the 10th of April 1987 the Hokitika Guardian reported that Coast Air Charter Ltd was to undergo a number of major changes. It was announced today that the present directors and officers of the company have resigned and Hokitika businessman Mr Bruce Smith has been appointed managing director. Mr Smith holds no shares in Coast Air but he has been brought in to oversee the financial reconstruction of the company. The company suffered a major setback last year when a Twin Otter it had leased proved uneconomical on a passenger volume basis. The aircraft was sold with losses totalling around $1m. Mr Smith said today that the company was now operating an eight-seater Navajo aircraft at about 90 percent of full capacity. "The airline is a major asset of the West Coast," Mr Smith said, "and I am confident it will continue. I will be looking at the economics of the present runs, the marketing of the company, and moving to improve efficiency in all areas." No change is envisaged at this stage to staffing levels or the present timetables. Two additional directors have been appointed to the board of Coast Air Charter Limited, Mr Lindsay Smith (Hokitika) and Mr Stephen G Smith (Westport). What the report didn't say was that Bruce Smith's company, Como Holdings Ltd, owned the Piper Navajo being used by Coast Air. 

My ticket for Coast Air flight 58 from Christchurch to Greymouth on 10 April 1987

Three weeks on there had been changes. Coast Air cancelled the midday Christchurch-Greymouth-Christchurch service at the end of April, pilot numbers were reduced by one, and office manager, Harry Kitchin, who had been with the company since its inception, was made redundant. 

Coast Air timetable effective 1 May 1987

For the remainder of 1987 and into 1988 Coast Air continued its West Coast flights across the Alps, but on the 29th of February 1988 the Greymouth Evening Star carried the headline “Coast Air Still Flying Despite Suggestion it Might Cease.” The article detailed a letter dated the 23rd of February from Bruce Smith to shareholders which outlined matters that required "urgent attention." In his latest statement to shareholders, Mr' Smith said: "The financial position of the company has vastly improved with external borrowings by the company, being replaced by borrowing from the directors (except of course, for the bank overdraft at the Bank of New Zealand which is secured by way of debenture)." Referring to an attached "pro-forma" balance sheet prepared as at January 30, Mr Smith said directors' advances appeared as a term liability. Listed among the current liabilities was a $100,000 advance from Como Holdings.

Noting his appointment - presumably as a management consultant - was due to expire today, Mr Smith made the following recommendations - 

• That an urgent share-holders meeting be called. 

• That a further increase in the company's capital by all shareholders be arranged.

• That such an increase include the capitalisation of present directors' advances - in excess of $800,000 - into fixed capital.

• That there be a further cash injection to enable the working capital of the company to be further enhanced. 

• That new directors and company secretary be appointed.

Mr Smith said there had been a significant improvement in the company's working capital position and he considered a further cash injection from shareholders was desirable - it is understood at least 25 Coast businessmen contributed $5000 each last year to keep the airline going. "In the event of no increase in capital being approved - I suggest $100,000 - then I strongly urge you to appoint a liquidator. Current operating expenses are being handled comfortably, but without a further sum (albeit small) the final catch-up of past creditors will not occur within a reasonable time. "Should no decisions be made by February 29, 1988, Coast Air will cease to trade," Mr Smith said in his statement to shareholders. Also enclosed was a signed option offering shareholders 1 cent for each $1 share, which, Mr Smith said, was "now formally cancelled." 

Contacted today to elaborate on his letter to the share-holders, Mr Smith said he was now aware that not enough time had been allowed to enable a meeting to be arranged. "I know there are some shareholders who have yet to receive the letter… so we've extended it to Thursday," Mr Smith said. He rejected any suggestion that he was attempting to force matters relating to Coast Air to a head. "My concern is that, nobody's got of their a-s and done anything," he said. "The situation is that the company can now run effectively, but someone needs to take it on. All it needs is about one hundred grand and it'll run sweet." Mr Smith said he considered the shareholders had been happy to allow him to continue to run Coast Air because they were not required to do anything. However, he now had other projects of his own which would require him to spend considerably more time away from the West Coast. Coast Air, he said, had lost $1.7 million before he had stepped in and turned things round, but the time had come for him to move on to something else. 

Mr Bert Waghorn, chairman of Coast Air until Mr Smith came on the scene, and still a major share· holder in Coast Air, said from his Reefton base this, morning the airline would continue to fly in the meantime. He said he had only received Mr Smith's notice to shareholders on Thursday evening, "and two working days don't give you much of a chance to set up a shareholders' meeting." Mr Waghorn expressed the view that Mr Smith was "forcing the pace" over the airline's financial position and said he hoped negotiations would solve any problems. Major shareholders, he said, were looking towards the Thursday meeting and a statement on the company's future would be issued afterwards. 

In a follow up article the next day it was reported that Coast Air was insolvent when Mr Smith took over with losses for the year previously of over $1.5 million. Liabilities at that time included $750,000 owed to creditors — since reduced to under $160,000—and more than $1½ million in term liabilities to the Bank of New Zealand. Mr Smith says that the company's losses have been reduced by almost $500,000 in 12 months, and says that with a minimal injection of capital, he sees no reason why the airline should not continue operations. 

Following the meeting of shareholders the chief pilot, Phil Cooper, was appointed manager of the airline.

In late March 1987 it was announced that Coast Air did not expect to continue operating beyond mid-April. Bert Waghorn told the Greymouth Evening Star, The directors of Coast Air are out of pocket to the tune of over $750,000. However, he said attempts were under way to try and keep a small air service going between the West Coast and Canterbury when the company closes. Negotiations were taking place with Christchurch-based airlines in the hope that they could offer flights to the West Coast as an extension of their existing services. "We have got a couple showing interest and another that could possibly be interested. They have to go away and do an economic study of it. "We have already proved that operating out of the Coast is not economic but they already have an infrastructure in Christchurch so they wouldn't have the costs that we have got." 

The lease of its Christchurch-West Coast run was one of several options being considered. "We have sunk an awful lot of time and money into this and the last thing I would want to see is it becoming a memory," Mr Waghorn said. "We won't make anything back out of selling or leasing it, but hopefully it may payoff the rest of our creditors. "The directors are up for considerable losses - in excess of three-quarters of a million dollars. This has got to be paid out by them as a direct liability. "It's quite a kick in the teeth." 

Coast Air flights are due to end on April 15 when Como Holdings reclaims the Piper Navajo aircraft it has been leasing to the airline for the past 14 months. 

On the 14th of April, a Coast Air spokesman told the Greymouth Evening Star, it is not known at this stage whether the firm will be dissolved. "Investigations are under, way into the future of the company. "Outstanding debts are still being calculated and the actual deficit will not be known for a while yet." In the Press airline’s operations manager and chief pilot Phil Cooper, said that the main reason for closing was that the leased aircraft was being sold by its owners. Coast Air tried to put together “various interested parties” to buy the plane and keep the service going, he said. “But with the threat of new airways charges hanging over us, no-one is prepared to invest in an airline’’ The Airways Corporation, previously the Civil Aviation Division, has proposed a new charging regime that will spread the cost of! providing services such as air traffic control. Larger airlines will pay less and small airlines, such as charter operators will pay more. Non-commercial users will for the first time be expected to pay as well. The new charges are due to take effect on July 1. There has been strong opposition to the new charges, which have been deferred from the original implementation date of April 1. Mr Cooper predicted that if they went ahead as planned, they would force most small commercial operators out of business Coast Air’s service was closing in spite of a “load factor,” or passenger occupancy rate, of more than 60 per cent over the last year, land about 75 per cent in March. Coast Air’s other businesses - a flying school and general aviation services based in Greymouth - would continue. Mr Cooper said that he, the second pilot, Mr Garry Sotheran, and a clerk in Greymouth would lose their jobs. “It is totally disappointing. It was a good little service,” he said.

Coast Air's Piper PA31 Navajo at Christchurch on 4 April 1988. Photo : S Lowe

On the 15th of April 1988 Coast Air flew what it thought would be its final four scheduled services. On the 18th the Bank of New Zealand placed Coast Air Charter Ltd in receivership, appointing Brian Devlin and Richard Wilding. both chartered accountants, as receivers. 

The following day Brian Devlin, “After a weekend of very intense negotiations we have successfully arranged the long-term hire of a seven seat Piper Navajo from Air Nelson,” he said. This is the same type of plane the company hired from Como Aviation, which it had to return last Friday. Subject to final approval from Civil Aviation, the company plans to resume the service, with the same timetable as before, on May 2. However, because there will be a charter charge for the replacement plane, there will be an increase in fares of around 18 percent. Restructuring of the company will involve consolidating seat reservations at the Greymouth bases. Previously reservations had been carried out in Christchurch. Instead of two full-time pilots, the new operation will involve one full-timer and a part-timer.” Mr Gary Sotheran has been appointed new operations manager and chief pilot. A new part time pilot has been employed under contract.

On the 20th the Greymouth Evening Star said Coast Air director and former chairman, Mr Bert Waghorn, is pleased the airline is to resume its service to the public but does not hold out much hope of the directors recouping losses totalling $ 750,000. The company had been placed in receivership to achieve restructuring and debts, totalling around $1 million, have been frozen. In the meantime the service is to resume on May 2 following the long-term hire of a replacement Piper Navajo from Air Nelson. Mr Waghorn said today that he was “really pleased” the efforts of the directors were not “going down the drain. But as a mighty big debenture holder, I don’t hold out much hope of getting any of that money back. I think it will be a loss to the shareholders. It’s going to come very close to putting them all in the bankruptcy courts.” The losses came about because of the company’s decision to begin the service with a 20-seater Twin Otter aircraft. A 14-month feasibility study indicated that this would best suit the requirements of the public.

“It was too big and expensive for our requirements. Had we started with the smaller plane, we would be all right.” However, receiver manager, Mr Brian Devlin, had not ruled out the possibility of the directors , the second debenture holders, being paid back the $ 750,000 in the long term, through the restructuring of the airline and the possibility of “doing something else with Coast Air. I would have to talk with the directors and see what opportunities come up. I have a number of ideas I’m not prepared to divulge yet.” Meanwhile he said the sale of an aeroplane and hangar surplus to requirements would “go a long way” to paying of the $50,000 owed to the first debenture holder the Bank of New Zealand. The company owes around $200,000 to unsecured creditors and Mr Devlin said it was hoped that some arrangement could be made with them at some stage in the future. The service has been operating as a viable concern for the last 12 months and Messrs Devlin and Waghorn were both optimistic that public support including one from a young person who wants 20 tickets,” Mr Devlin said this morning. “It is a service to the West Coast that must be maintained and this can only be done if we have support from the public and businesses.

Despite being in receivership Coast Air resumed services on the 2nd of May 1988 using the same Piper Navajo ZK-JGA, though now leased from Air Nelson. “The bookings look great,” Coast Air manager, Mr Gary Sotheran, told the Greymouth Evening Star. They have shot straight back to the old level, which was a good level,” he said. 

During May 1988 the Coast Air service was advertised heavily in the Press, 6 May 1988

Having overcome this storm the Coast Air service continued quietly over the next few months until mid-September when Air New Zealand announced that it had bought a half share in Air Nelson who were going to acquire two 19-seat Fairchild Metroliner III aircraft and take over Air New Zealand daily flight between Christchurch and Hokitika with three Metroliner flights. Faced with this impending competition Coast Air made the decision to end its services on the 31st of October 1988. 

However, lack of patronage caused Coast Air's service with the final flights being operated on the 17th of October 1988. One of the receivers, Brian Devlin, told the Greymouth Evening Star “As receivers we said the service would finish on or before October 31 but bookings have been exceptionally light so we see no sense in continuing. If we allowed the flights to continue we would be jeopardising any advantages gained during the receivership period,” 

A few days before the air service ended and it looks like a full load... ZK-JGA departs Greymouth on 14 October 1988. Notice the changed titling. Photo : I Coates

.

Meanwhile, in the background Coast Air's flight training and air charter work was slowly winding down as assets were focussed on propping up the air service. The Cessna 207 ZK-EJD was registered to Bert Waghorn on the 30th of July 1985 before being sold in December 1986. Cessna 172 ZK-DFY was sold in October 1986. ZK-EHO remained in the fleet the long Cessna 172 was registered to Vic Alborn on the 26th of October 1988, possibly still being used by Coast Air. The Cessna 177 Cardinal ZK-DIH left the fleet in November 1988. 

Cessna 172 ZK-EHO wore the same stripes on the tail as Coast Air's Piper Navajo but never wore the titles. Photo taken at Christchurch on 28 December 1987 by S Lowe

The final postscript to the Coast Air Charter Limited story was an Air Services Licensing Authority notice 18th of May 1989 that it intended to cancel Aerial Work Licence No. 2194 and Category B Air Transport Licence No. 2464 in the name of Coast Air Charter, Limited on the grounds that the licensee has abandoned the service authorised by its licence. 

The following month Cessna 172 ZK-FMP was registered to the Greymouth Aero Club Inc as the Aero Club took over Coast Air's flight training and charter work. 

Coast Air was undoubtedly a good charter operator. Things started to go wrong with the choice of the Twin Otter for its first airliner. It was too big to start the service with, it was unpressurised and slow for the trans-alpine flights and it was always going to be unsustainable flying just between Greymouth and Christchurch. Coast Air's plans to operate a Greymouth-Franz Josef-Mount Cook would never have changed the financial returns as this service could only have operated in VFR conditions. The move away from a Greymouth base didn't help with timetables which no longer suited the West Coast business community causing the core element of local support waned. After Coast Air's closure the arrival of Air Nelson Metroliners into Hokitika really started to prove that commuter aircraft could be a good for the Westland's air service.

Aircraft Operated

Cessna A152 Aerobat

ZK-ELC - c/n A1520787

Cessna 172

ZK-CKN  - c/n 17252194

ZK-DFY -  c/n 17260735

ZK-DHQ - c/n 17261103

ZK-ELH - c/n 17270955

ZK-EKF - c/n 17269923

ZK-EHO - c/n 17269668

       

Cessna 177B Cardinal

ZK-DIH - c/n 17701900

Cessna A185F Skywagon

ZK-DPG - c/n 18502427

Cessna 207 Skywagon

ZK-EJD - c/n 20700362

De Havilland Canada DHC-6-300 Twin Otter

ZK-OTR - c/n 250

Piper PA-31-310 Navajo C

ZK-JGA - c/n 31-7612102