The findings of an inquest into the deaths by Coroner Ian Smith were released today. He said a "near perfect storm" of events led to the tragedy.
The findings were critical that a CAA safety report from 1996, which identified the potential for a mid-air collision, was ignored.
Coroner Smith pointed to a "laissez-faire attitude" at the airport.
CAA director Graeme Harris said at the time of the crash, the aerodrome was not under its regulatory power because it serviced planes that held fewer than 30 people.
That was no longer the case, with bigger planes using the facility, he said.
"Paraparaumu's a considerably different place now than it was then."
Coroner Smith recommended the CAA and the Minister of Transport lower the threshhold for regulated aerodromes to those with planes holding 10 seats.
Mr Harris said that would mean the CAA would be given "quite explicit powers" with regards to those aerodromes.
"Whereas without it, we're pretty much in an offer advice and education assistance role."
Mr Harris said an amendment to CAA rules that would bring more, smaller aerodromes under its control was being worked on. But it would be impractical for the change to apply to all aerodromes, he said.
"We agree with the thrust of the coroner's recommendation, but we're not sure it should apply as a blanket 10 seats because ... there could be an aerodrome where one 10-seat aircraft operates there once a day and there is no there operation [going on].
"Why would you need to have a whole bunch of regulatory standards applied to that?"
He hoped the rule change would be sent to Government by mid next year.
Associate Transport Minister Craig Foss, who has oversight of the CAA, said the Government and all relevant agencies would "carefully consider" the coroner's report, including a recommendation for CAA staff to increase monitoring and inspection at non-certificated aerodromes.
"I note that the coroner's recommendations are largely in line with the CAA's proposed amendments ... The amendments, currently being finalised by the CAA and Ministry of Transport, seek to improve aerodrome safety through the expansion of certification and operational requirements to smaller aerodromes."