Auckland Airport has decided not to increase its shareholding in Queenstown Airport this year.
In July last year, Auckland Airport injected $28 million into Queenstown Airport and had the option of increasing its stake from 24.9% to up to 35% before the end of June.
Both companies have now decided to cancel that option.
Auckland Airport chief executive Simon Moutter says debte in the community and the impact of the Christchurch earthquake have played a part in the decision.
But Mr Moutter says the alliance has been very successful and Auckland Airport is still interested in gaining a bigger stake in the company in the future.
Queenstown mayor Vanessa van Uden says while the city's seen benefits since the agreement, she thinks it's appropriate Auckland's shareholding remains at its present level.