Parochial interests win Queenstown airport fight

Parochial interests win Queenstown airport fight

by Paul McBeth

March 21 (BusinessDesk) – Auckland International Airport Ltd.’s grab for more than a third of Queenstown Airport has fallen over as public opposition put too much pressure on the local council to go along with the plan.

Auckland Airport and Queenstown Lakes District Council have cancelled a subscription agreement for the national gateway to lift its share in Queenstown Airport to between 30% and 35% from its current quarter stake.

Auckland Airport’s $28 million purchase last year sparked a local backlash.

The decision will take pressure off the council, which had until the end of June to ratify an extension to the Auckland gateway’s shareholding.

“We recognise that the prospect of an increase in Auckland Airport’s existing shareholding has been the subject of considerable debate within the community and has been a key factor in the council’s plans for a potentially expensive process of community consultation,” the airports said in a joint statement.

“By taking the prospect of an increased shareholding through the exercise of this option off the table, we are removing an unnecessary distraction from the situation.”

Simon Moutter, chief executive of Auckland Airport, said any future increase in its Queenstown investment would be on terms the council, as major shareholder, was comfortable with.

Shares in the Auckland gateway fell 0.4% to $2.14 in trading today, and have declined 1.4% this year.

(BusinessDesk) 17:59:06

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