Not too far from the mark.
The RNZAF is so small they can actually ill afford to have an experienced Capt and Instructor religated to Co-pilot. Not to mention that he'll be hogging the seat of some less experienced squadron mate thus depriving him/her of valuable experience.
All in all a shocking show of command/leadership. This young thruster commited no crime (1000ft VFR!). What the RNZAF needed was a commander who said as much to the press/Govt thus gaining the respect of all RNZAF personnel.
As Ex-DD stated, morale is low in the RNZAF because they know at times like this (even when completely innocent) they will get no support from their Senior Officers.
? Perhaps its because anyone worth their salt (in the senior ranks) has left ?
By-the-by: I note that the PM recently blamed the Hercules and 727 unservicability rate on the National Parties desire to buy F16s!?
The fact that her Govt has done nano, zero, squat, zilich for the last 5 yrs seemed to completely slip her mind.