Auckland International Airport Limited (AIAL) has announced that it has bought a cornerstone stake in the smaller Queenstown Airport.
AIAL has acquired a 24.99 per cent stake in Queenstown Airport for a total consideration of NZ$27.7m (A$22.4m). It also has an option to raise its stake to between 30 and 35 per cent up to June 30 2011. The two airports have also announced a strategic alliance which aims to help boost traffic at Queenstown by an additional 176,000 passengers a year within five years over existing targets.
“There were compelling reasons why it made strategic and financial sense for us to maximise these two partnerships by having skin in the game and more influence through equity participation,” explained AIAL CEO Simon Moutter. “It also provides us with a financial incentive to contribute fully to the success of the strategic alliance. This is particularly relevant with Queenstown Airport – as the smaller airport, it stands to benefit proportionately more than Auckland Airport from the increased passenger volumes resulting from our partnership.”
AIAL also recently purchased a significant stake in North Queensland Airports, which operates Cairns and Mackay Airports.