Rotorua tourism operator Volcanic Air Safaris Limited goes into liquidation following Covid-19 slump

Volcanic Air Safaris Limited director, shareholder and pilot Tim Barrow. Photo / Ben Fraser

An iconic Rotorua tourism business has gone into liquidation after failing to claw itself back following the Covid-19 pandemic - but the company's boss says there's hope on the horizon.

Volcanic Air Safaris Limited was put in liquidation on October 12, just days before four of its own received bravery awards for their heroic rescue efforts after the Whakaari/White Island eruption.

The company's demise has been attributed to three key factors - the almost complete loss of clients after the borders shut, a WorkSafe New Zealand prosecution relating to Whakaari, and the millions it would have cost to rebuild its central hub following Rotorua's lakefront redevelopment.

Volcanic Air Safaris Limited's floatplane in 2005. Photo / Andrew Warner

The business, in operation since 1992, had been a staple of the Rotorua tourism market providing scenic flights over Mt Tarawera and Whakaari, with its visitor office based at the Rotorua lakefront.

This week, company director and shareholder Tim Barrow, chief helicopter pilot Graeme Hopcroft, and colleagues Sam Jones and Callum Mill were among seven people given bravery awards for their efforts to save lives after Whakaari erupted on December 9, 2019.

The Volcanic Air Safaris four were awarded New Zealand Bravery Decorations, given for exceptional bravery in a situation of danger.

The pilots, among others, landed on the island soon after it erupted and made their way through thick ash to help retrieve badly injured survivors.

They helped load casualties into helicopters, with Barrow and Hopcroft flying two people to Whakatāne Hospital while Jones and Mill stayed behind with Kāhu NZ pilot Tom Storey to search for other survivors.

They carefully grouped the dead closer together with the intention of retrieving the bodies when the helicopters returned.

A still taken from a tourist boat when Whakaari White Island erupted in December 2019. Photo / Supplied

In November 2020, WorkSafe NZ filed charges under the Health and Safety and Work Act relating to Whakaari against 13 parties, including Volcanic Air Safaris Limited and Kāhu NZ. The maximum fine if found guilty for some of those charged is $1.5 million.

The charges do not relate to events on the day of the eruption, or the rescue efforts. Charges have been dropped against the National Emergency Management Agency and GNS. The other defendants have pleaded not guilty, with a trial scheduled for July.

Barrow said it was not yet determined what the liquidation meant for the prosecution.

However, liquidator Andrew McKay said a company remained in existence while in liquidation but the Companies Act states a person must not start or continue legal action against a liquidated company - unless a liquidator agrees or a court orders otherwise.

McKay said that to date he had not received any communication from WorkSafe New Zealand regarding the proceedings.

A WorkSafe spokesman said it could not comment on the specific case, but noted there was precedent for WorkSafe to be granted leave to continue with prosecutions of liquidated companies.

Barrow said there was irony in receiving the bravery award and liquidating his company in the same month, but said the liquidation was not a way to avoid prosecution.

"It's more - you couldn't have aligned the stars any worse for us."

A Volcanic Air Safaris Limited helicopter was badly damaged in the eruption. Photo / Instagram

Before Covid struck, the company made 94 per cent of its money from international visitors.

"We did our best to pivot and did all the things we could to keep the business functioning, but it's been a massive struggle, and really, in the end, we didn't have a choice because the company wasn't in a position to fund its way forward."

Barrow said part of that was the need to fund its "reinforcement requirements" at the new-look lakefront, including installing an expensive fuel facility for the aircraft.

Barrow said the company was supportive of the lakefront redevelopment, but it would have had to commit to spending millions to be part of it.

"We were all in favour, but in terms of its timing, it could not have been worse in some respects ... Volcanic Air Safaris Limited was not in a position to raise that sort of money... We were excited about the whole redevelopment, and if events had not transpired we would have been in, boots and all."

However, Barrow said it wasn't all doom and gloom.

"Although Volcanic Air Safaris Limited was not in a position to carry the business forward, I am hopeful and we are in discussion with potential investors to carry the Volcanic Air brand into the future and be part of Rotorua's rebirth."

Barrow said Rotorua had an "incredibly bright future" as it remained one of the best visitor destinations in New Zealand.

"There is a phenomenal future and I'm trying to keep my cup half-full, because it's been a few years of emptying the cup."

He said hoped something could be announced about the next move within a month.

The new-look Rotorua lakefront development. Photo / Andrew Warner

"If it comes together, it will be nice to see an ongoing operation at Rotorua's lakefront."

In its heyday, Volcanic Air Safaris Limited employed up to 25 people, but when it went into liquidation, it had six.

It was hoped any new venture would ensure those six could be re-employed.

He said the company predicted its demise and made sure its creditors would not be left "high and dry".

McKay released his first liquidator's report on October 19 which said the company had total assets worth $147,082 and total liabilities of $163,534, meaning it owed about $16,000.

A creditors' meeting would not be held at this stage as the cost of the meeting would outweigh the benefit given the limited number of creditors, the report said.