Legal action against Auckland Airport deal cancelled
Legal action by Air New Zealand and a lobby group against Auckland International Airport's investment in Queentown Airport has been called off.
Air New Zealand and the Queenstown Community Strategic Assets Group have today withdrawn their cases against Auckland International Airport (NZX:AIA) over its shareholding in Queenstown Airport (QAC).
The Queenstown Community Strategic Assets Group is a lobby group featuring a number of prominent Queenstown business and community leaders.
Like the airline, the group opposed a deal announced last July where AIA invested in a 24.99% shareholding in QAC by subscribing for new shares for $27.7 million.
AIA had an option to increase its holding to 30% to 35% any time up to June 30 this year.
Air New Zealand said today the legal action over the deal had been called off.
“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.
“When AIA agreed that it would cancel the option to increase its shareholding of QAC to 30-35%, we began to look at ways we could turn the situation around for the benefit of everyone involved.
“By AIA keeping its shareholding at 24.99%, many of the concerns we had about its involvement and as a competitor to Queenstown Airport were mitigated.
“On behalf of both Air New Zealand and the Queenstown Community Strategic Assets Group we are pleased that we have achieved success on the eve of the case heading to court.”
The agreement reached will enable Air New Zealand and Queenstown Airport to continue to work together on the need for ongoing capital works of this important asset for Queenstown 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.
NBR staff
Fri, 13 May 2011
Fri, 13 May 2011
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Legal action against Auckland Airport deal cancelled
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