On December 21, 1978, Safe Air Ltd pilots Vern Powell and Ian Pirie observed a formation of lights ranging in size to that of a house tracking their cargo Argosy aircraft between Blenheim and Christchurch. Wellington air traffic control simultaneously detected three unidentified radar targets, one of which moved 60 nautical miles at high speed.

This was the first of the Kaikoura incidents and established the radar-visual combination that made the subsequent December 30 filming credible. Wellington WATCC estimated one return was the size of a commercial airliner. The pilots reported the lights disappeared and reappeared in different positions relative to the aircraft. The RNZAF subsequently sent an Orion on a reconnaissance mission and interviewed principal witnesses.