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January, 2011 Six months after Auckland Airport's controversial 24.9 per cent buy-in to Queenstown Airport, the resorts airport chief executive says the deal has already saved $2.5 million.Queenstown Airport Corporation chairman Steve Sanderson said this month the capital injection of almost $28million gained from the deal saved $2.5million in annual interest payments, which paved the way for much-needed expansion to happen. "Our debt went from $36million to $8million," he said. "This allows us to fund capital growth out of less debt which in very basic economics makes sense." New developments slated for the airport include an expansion of the international arrivals hall, with work to begin this winter and progress throughout next summer. A $8million taxiway, plus new jet stands are also planned. While the project was not directly funded by the Auckland Airport deal, the debt reduction reaped from it allowed the airport to continue to expand at a critical period, Mr Sanderson said. The corporation planned to spend up to $40million over the next three years. Without the cash injection from the Auckland Airport deal, the corporation's debt would have reached $50million, which would have incurred interest repayments of around $9million per year, Mr Sanderson said. Proof the buy-in had already paid off was evident in China Southern Airlines recent announcements to fly direct from Guangzhou to Auckland, when it had initially planned the flight to land in Melbourne, he said. "Direct flights to Auckland and wholesalers selling Queenstown packages is a great development that has come as a pleasant surprise." Source: The Southland Times
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