PAL Certificates Suspended Amidst Financial Troubles


New Zealand’s Civil Aviation Authority (CAA) issued a continuing airworthiness notice on Thursday temporarily suspending the maintenance, design and manufacturing organization certificates held by Pacific Aerospace Limited (PAL). The decision was made after PAL notified the agency that the company was in financial distress. The CAA stated on Friday that aircraft produced by PAL may continue flying unless a safety or airworthiness issue is identified.

“The CAA was informed on Wednesday about PAL’s financial status and since then we’ve been working through what the implications are for PAL aircraft operating in New Zealand and around the world,” said Dean Winter, CAA deputy chief executive of aviation safety. “As a result, yesterday we suspended PAL’s certificates, which had previously allowed it to design, manufacture and maintain aircraft. These certificates require the organisation to be in a financial position to comply with all their safety requirements and this is sadly no longer the case for PAL.”

PAL produces military, utility and agricultural aircraft including the CT-4 Airtrainer, Fletcher FU-24, Cresco, P-750 XSTOL and E-350 Expedition. According to the company, it has manufactured more than 700 aircraft to date. PAL is based at Hamilton International Airport (HLZ) in Hamilton, New Zealand.

Kate O'Connor
Kate O’Connor works as AVweb's Editor-in-Chief. She is a private pilot, certificated aircraft dispatcher, and graduate of Embry-Riddle Aeronautical University.

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  1. I guess I don’t get it. A government agency tasked with supporting the aviation industry and keeping people safe. An aircraft manufacturer who is providing safe equipment, but is in financial trouble. So despite no mention of safety issues, and only based on economics, the government regulatory agency puts the nails in the manufacturer’s coffin by stripping them of their certificates. I suppose the Kiwi bureaucrats would rather go about their jobs without the nuisance of leaving their cubicles and dealing with a company producing aircraft while employing their countrymen. Eliminate the local manufacturers of domestic aircraft and you can get a gold star for a perfect safety record since there are none flying.