Auckland Airport 'bemused' by Air NZ attack

Auckland International Airport Ltd (AIAL) says it is "bemused" by an attack on it by Air New Zealand after its purchase of a stake in Queenstown Airport.

AIAL said on July 8 that it was 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.

A high-powered group of Queenstown business and community leaders have come out in opposition to the deal, saying there was no consultation and the airport should remain locally owned.

Air New Zealand group general manager Australasia Bruce Parton Friday said allowing airlines to invest in Queenstown Airport would ensure an tourism infrastructure asset had the financial strength to grow.

"It would also see Queenstown Airport have investors who genuinely understand how to grow tourism into Queenstown -- by keeping the cost of travel down. This is in contrast to Auckland International Airport Ltd which has a track record of gouging users like airlines, taxi and rental car companies to the point where they have to put up the cost of travel," Mr Parton said.

AIAL senior communications manager Richard Llewellyn said it was focused on growing tourism into Queenstown, and did not want to get into a debate with the airline.

"We are a bit bemused by the aggressive tone and the inflammatory assertions, but we're not taking this seriously," he told media.

"We don't see any benefit in entering into a distracting debate."

Mr Parton said Air New Zealand would be willing to lead a consortium of airlines to take a cornerstone shareholding in Queenstown airport and commit to ensuring the cost of travel stays down.

"We would not seek any dividends and ask that these be reinvested into the airport infrastructure to ensure it remains world class and can cope with increased demand due to all airlines offering attractive domestic and transtasman fares."

If a consortium arrangement does not eventuate, Air New Zealand would be prepared to consider any proposal to contribute to or underwrite infrastructure development at Queenstown Airport, as the airline has done in the past. This would certainly allow the community to retain full ownership of this important asset.

"We've been committed to growing the Queenstown market for more than 30 years and want to ensure its ongoing success for decades to come. We believe the current arrangement will not be conducive to that and are not surprised by the level of community and business anxiety over AIAL's investment," said Mr Parton.