25 Jul 2010

Queenstown Airport, council not seeking other investors

6:23 am on 25 July 2010

Neither Queenstown Airport nor the district's mayor is interested in any bid by Air New Zealand for a stake in the resort's airport.

Air New Zealand met with Jetstar on Friday to promote its plans to buy into the southern airport, as a way of countering any control Auckland International Airport (AIA) has gained by taking a 24.9% share.

AIA has paid $27.7 million for the 24.9% share of Queenstown Airport, and has said it is keen to increase this to up to 35% by the middle of the year.

However Queenstown Airport's chairperson, Mark Taylor, says a bid by airlines is not a realistic option.

Mr Taylor says the airport doesn't need any other investors, although it would be up to the majority shareholder, the Queenstown Lakes District Council, if it wanted to sell some of its shares.

And Queentown District Mayor Clive Geddes says his council is not interested in a bid by Air New Zealand. He says there's no interest by the council or the community in selling more than 35% of the airport, or dealing with any other party.

Qantas undecided

Jetstar says it is sympathetic to Air New Zealand's aims but couldn't join any action without support from its parent airline, Qantas.

Qantas says it hasn't decided whether to support Air New Zealand's plan, and intends to discuss the proposal with Air New Zealand once it's had a chance to look at it.

Deal 'shoddy'

Air New Zealand has already lodged a complaint with the Commerce Commission over the Queenstown Airport deal.

The airline's Australasia general manager, Bruce Parton, told Radio New Zealand's Checkpoint that if the airline cannot get a consortium together it will "go it alone."

Mr Parton describes the deal between the airports as "shoddy" and says his company wants it overturned.

He says AIA has a track record of driving up the costs to airlines, taxi and rental car companies and thus hitting travellers.

But Mr Parton says the best result would be that the Commerce Commission overturns the Auckland Airport deal, so the Queenstown community retains 100% ownership.

Auckland Airport 'bemused' by attack

AIA spokesperson Richard Llewellyn says the company is bemused by the "aggressive tone and inflammatory assertions."

Mr Llewellyn says the airport doesn't want to enter into a distracting debate and is focusing on increasing tourism to Queenstown.

Air New Zealand's deputy chief executive is meeting the Queenstown mayor, Clive Geddes, on Monday to discuss the situation.

Opposition to AIA deal

A group set up to oppose Auckland International Airport's purchase of a stake of Queenstown Airport applauds Air New Zealand's efforts in speaking out against the deal - but says it does not want the airline to take a stake in the company either.

The Queenstown Community Strategic Asset Group wants the deal overturned and is preparing a case for the Auditor-General to consider.

However, spokesperson John Martin says Queenstown Airport does not need any financial assistance, and the airline's proposal to purchase a stake isn't welcome.