Skyrocketing numbers of international passengers pouring into New Zealand are pushing Queenstown Airport to invest millions of dollars to expand its facilities.

Queenstown Airport general manager commercial Simon Barr said the number of international passengers is expected to increase by 60% over the next year alone.

Together with predicted 10% growth in the number of domestic travellers this is bound to put pressure the airport would not be able to handle.

Air New Zealand today added to the debate about Auckland International Airport's purchase of a stake in Queenstown Airport, saying airlines should be allowed to invest in the airport as well.

Auckland Airport said on July 8 that it is investing in a 24.99% shareholding in Queenstown Airport by subscribing for new shares for $27.7 million. It has an option to increase the holding from 30% to 35% at any time up to June 30, 2011.

Airport investment to bring benefits

Auckland International Airport’s decision to spend nearly $28 million to take a 24.99% stake in Queenstown Airport is good news for both the airports and Queenstown itself.

And Queenstown Airport, following approval from Queenstown Lakes District Council, may exercise an option for Auckland Airport to increase this stake from 30% to 35% before June 30 next year.