Sharechat Logo

Wellington considers airport share sale

Friday 9th August 2002

Text too small?
Wellington City Council said yesterday it "may" put its one-third stake in Wellington Airport, the country's third largest, on the market as a result of a strategic review of its assets.

Utilities investor Infratil, which owns the remaining 66%, said it would consider buying the shares at the right price if they were offered.

The council is watching the impending sale of Auckland City Council's sale of a 25.7% stake in Auckland International Airport (AIA).

Also of interest is the Commerce Commission's report, released this week, which found AIA was overcharging its customers. The commission recommended price controls on the airport's airfield activities.

This prompted Air New Zealand to demand a renegotiation of its AIA landing fees and a limit to impending fee rises at Wellington. The airline agreed last month to an interim 10% fee increase.

The commission's report said Wellington was also overcharging its customers but not to an extent that warranted price controls.

AIA's shares fell from $4.16 to $3.97 after the report's release but have since recovered.

The airport said it was disappointed with the report's conclusions and disputed the methodology for valuing its assets.

It said using historical cost valuation, rather than its preferred ODRC (optimised depreciated replacement cost) method, could have serious consequences for other infrastructure companies.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ikeGPS Chief Financial Officer Transition
TWL - TradeWindow announces strategic partnership with FTA
BLT - Patent issue settled and new 5 year agreement with BSP
July 2nd Morning Report
July 1st Morning Report
June 27th Morning Report
SDL - FY2026 Earnings Guidance
PaySauce Director resigns for US-based role with NZTE
General Capital Releases 2025 Annual Report
June 26th Morning Report