Air New Zealand has written to the Commerce Commission citing serious concerns over Auckland Airport's investment in Queenstown Airport.
Auckland Airport has paid $27.7 million dollars for a 25% stake in Queenstown's gateway.
The airline's lawyer, John Blair, says it is worried the deal will stifle tourism growth and push up prices.
He says Auckland Airport has a track record of pushing up landing fees and it's important the appropriate regulators look at what is going on.
Auckland Airport is defending the deal, saying it wouldn't have bought a share in Queenstown Airport if it didn't think it could grow the business.
Withdraw deal, urges Chamber of Commerce
On Friday, the Queenstown Chamber of Commerce issued a memorandum to its members asking for them to comment on the deal.
Chairman Alastair Porter says the community didn't even know the deal was being done, and it is not in its best interests. He says Queenstown ratepayers - the airport's owners - could have got a much better deal if the shares had been offered on the open market.
Mr Porter wants the deal withdrawn, saying there are other ways of structuring such a deal, such as a bond issue, that would enable the Queenstown community to retain full ownership of the airport and receive a regular and growing return.
It's been revealed that millions of dollars in dividends promised by the mayor and others to the community will not be seen unless Auckland Airport increases its stake to between 30% and 35%.
