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March, 2011 Auckland Airport will not increase its shareholding in Queenstown Airport after the directors of both airports opted to cancel the agreement this month, saying it was a distraction.The boards said the cancellation of the subscription agreement was in the best interests of both airports, the district council and the local community . There was concern from community leaders and Queenstown residents last July when it was suddenly announced that Auckland International Airport had bought 24.99 per cent of Queenstown Airport for almost $28 million, with the option of a further 10 per cent buy-in. Even the sole owner of the airport, the Queenstown Lakes District Council, was unaware of the sale of a quarter of its asset before it happened. We recognise that the prospect of an increase in Auckland Airports existing shareholding has been the subject of considerable debate within the community and has been a key factor in the councils plans for a potentially expensive process of community consultation, Queenstown Airport chairman Mark Taylor and Auckland Airport chief executive Simon Moutter said in a joint statement this month . 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 airports 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. The cancelled agreement would have allowed Auckland Airport to increase its existing shareholding in Queenstown Airport with the Queenstown Lakes District Councils permission. The transaction also gave Queenstown Airport an option to issue further shares to Auckland Airport to increase its shareholding to 30-35 percent at any time up to June 30, 2011. Mr Moutter said Auckland Airport was comfortable with its existing 24.99 per cent airport shareholding. While we have always acknowledged that we would like a higher shareholding as this would strengthen our winning partnership with Queenstown Airport even further, we appreciate this is not the time to have that discussion, he said. Auckland Airport had also given an undertaking to the council that any future shareholding increase would be on terms, and via a process, which the council as majority shareholder was comfortable with. Mr Taylor said the cancellation took the pressure off meeting the June deadline and allowed both airports to focus on securing tourism into the region. Our emphasis will be on welcoming the more than 90 people strong China Southern Airlines delegation arriving in Queenstown next month, as well as making sure Queenstown Airport is meeting the needs of airlines as they rebuild their route networks following the Christchurch earthquake. It is imperative, with so many businesses relying on a strong winter season, that we maximise the capacity of the airport for this winter, Mr Taylor said. Mayor Vanessa van Uden said the announcement from the two airports that an option for Auckland Airport to buy more shares had been cancelled was appropriate.
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Queenstown Property Limited |
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