The mayor of the Queenstown Lakes District Council has today welcomed the announcement of an alliance between Queenstown Airport Corporation Limited (Queenstown Airport) and Auckland International Airport (Auckland Airport).
The alliance will see Auckland Airport invest in a 24.99% shareholding in Queenstown Airport by subscribing for new shares at a total consideration of $27.5 million, funded from existing cash resources.

Queenstown Lakes District Mayor, Clive Geddes, welcomed news of the alliance.
 “The Lakes District economy is dominated by the national and international visitor industry and this alliance will ensure that the Queenstown airport will continue to be an important contributor to the local and regional economy.”

The Directors of Queenstown Airport Corporation have entered into an alliance with a growth-orientated airport operator that has a long history of running a strong robust operation and that will reduce the commercial risk to the Queenstown Airport company and its ratepayer shareholders.”

Mayor Geddes said the alliance was negotiated and confirmed by the board of Queenstown Airport, under powers given to it by the Council many years ago. “The Council, through the companies constitution, provided the board of the Queenstown Airport with the ability to seek and undertake such partnerships.”

In the future the alliance could see Auckland Airport increase its shareholding to 30 – 35%, however Mayor Geddes says that would only occur if Queenstown Airport agrees and it will require the approval of the Queenstown Lakes District Council.

The purchase of the shares would realise $10 million for QLDC, and in the years following Queenstown Airport would commit to paying the Council an annual dividend estimated to be in the vicinity of $2 million.

Mayor Geddes says that the use of the realised capital and the first ever dividends will need to be carefully assessed by the council and the community. “It is vital that these monies be applied to uses that will provide the widest possible benefit to the district at large. Determining that will require an informed discussion and council is looking forward to leading that.”

ENDS:

For more information please contact: Mayor Clive Geddes, Queenstown Lakes District Council
03 441 0460, 027 229 4860, clive@qldc.govt.nz

By: Ruth