Air NZ and community group pull Queenstown Airport case

Friday 13th May 2011

Air New Zealand has pulled a legal challenge to Auckland International Airport's purchase of a stake in Queenstown Airport, saying it will now work with the airport to bring more tourists to the region.

The withdrawn legal action brought in conjunction with the Queenstown Community Strategic Assets Group (SAG), which represents disgruntled locals, was due to start in the High Court next week.

SAG is associated with Queenstown businessman John Martin and community leaders who wanted "our airport back", arguing the sale of a quarter of Queenstown's airport to Auckland Airport was settled before the community knew about it.

Auckland Airport said last year that it was investing in a 24.99% shareholding in Queenstown Airport by subscribing for new shares for $27.7 million. It had an option to increase the holding to 30% to 35%.

The plaintiffs in the case were seeking a judicial review of the share issue, claiming it breached certain provisions of the Local Government Act.

Air New Zealand said today that when Auckland Airport agreed to cancel the option to increase the shareholding the group began to look at ways to turn the situation around.

"It has become clear as we prepared for the case that this would be a long and expensive battle which could cost several million dollars for all involved, including the Queenstown community, which would have long term disadvantage for everyone," said Air New Zealand deputy chief executive Norm Thompson.

An agreement reached would enable Air New Zealand and Queenstown Airport to continue to work together on capital works and create new joint promotional activity between Queenstown Airport, Destination Queenstown, as the promotional arm of Queenstown Lakes District Council, and Air New Zealand to attract more tourists to the region.

NZPA

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