Auckland Airport and Queenstown Airport have announced the cancellation of an agreement which would have seen Auckland Airport increase its Queenstown Airport 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 [Queenstown Lakes District] Council’s plans for a potentially expensive process of community consultation,” Queenstown Airport said a 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. It will also allow us to focus even more of our attention on building passenger volumes into Queenstown Airport, further strengthening the airport’s contribution to the district economy. We believe that this is all the more important as a result of the impact of the Christchurch earthquake on the community and industry.”
Auckland Airport invested NZ$28 million into Queenstown Airport last July, taking a 24.99 per cent shareholding. That deal included an option for Queenstown Airport to issue further shares to Auckland Airport, which would have increased its shareholding to 30-35 per cent, at any time up to June 30 2011.
Auckland Airport CEO Simon Moutter said his airport was comfortable with its existing 24.99 per cent airport shareholding.