27/09, the article you mention refers to Colin Keel, the airport CEO who succeeded the late Scott Paterson, who did all the damage to the club. Keel is far more enlightened than Paterson, but by the time he arrived on the scene the club was almost beyond salvation. Kingston looked promising as the best way to regenerate the club but I think it turned out to be a bridge too far.
As Konev has alluded, there were some internal issues in the club after the accidental death of the CFI in 2012, but it was Paterson's refusal to renew the club's lease that was the death knell. Paterson had no respect for the club even though it ran a reputable flying school and a perfectly viable Part 135 operation.
As for the OP's question, I don't know if the club is still functioning in any form as I haven't lived in Queenstown for almost four years, but if he would like to PM me I could make some inquiries from my contacts in the local industry.