Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Air N.Z. Objects to Auckland Buying Queenstown Stake

July 23 (Bloomberg) -- Air New Zealand Ltd. said Auckland International Airport Ltd.’s proposal to buy a stake in Queenstown’s airport may push up fares, and it says a group of airlines would be a better investor.

Air New Zealand would be willing to lead a consortium to take a cornerstone stake, the Auckland-based carrier said in an e-mailed statement. Alternatively, it would be prepared to consider proposals to underwrite the development of the airfield at the South Island resort town so the community retains full ownership, it said.

Auckland Airport, the nation’s busiest, said on July 8 it agreed to invest NZ$27.7 million ($20 million) in Queenstown in exchange for a 25 percent stake, with the option of raising its holding to 35 percent in the future. In cooperation with majority shareholder, the Queenstown Lakes District Council, the funds would be used to increase capacity to meet rising passenger volumes, it said.

Auckland Airport “is an expert at squeezing every last penny from the travelling public,” Bruce Patton, Air New Zealand group general manager for Australasia said in the statement. “It would be naive to think it’s not aiming to increase airline and airport charges which will ultimately increase the cost of travel into and out of Queenstown.”

The companies have been in dispute about landing charges at Auckland airport, the nation’s busiest.

To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.

To contact the editor responsible for this story: Iain Wilson iwilson2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.