$14.5 million Wanaka Airport lease signed with Queenstown Airport Corporation

Wednesday, 21 March 2018

The Queenstown Lakes District Council has finalised the terms of a $14.5 million, 100 year lease with Queenstown Airport Corporation for Wanaka Airport.

The grant of a long term lease to the corporation was decided by council in April 2017, after considering ownership, governance and management options and community consultation in November 2016.

Queenstown Lakes District mayor Jim Boult says Wanaka Airport is a key element in district-wide growth

Wanaka Airport operation, planning, development and governance will transfer to the corporation, which owns Queenstown Airport.

The corporation has been managing day-to-day operations at Wanaka Airport since 2010.

Queenstown Airport Corporation chief executive Colin Keel says there will be talks with Wanaka Airport commercial lease holders over the next few weeks.

The council remains the owner of Wanaka Airport and the lease agreement includes incentives for the corporation to invest in and develop the facility.

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The council is also the majority owner of the corporation. Auckland Airport holds 24.99 per cent of the shares.

Queenstown Lakes mayor Jim Boult said both parties were committed to developing Wanaka Airport so it could support district's growth and wider community needs.

Wanaka Airport was 'a hub of exciting activities', a key element in district-wide growth and needed to become an economically viable and sustainable business, Boult said.

'We'd like to thank all members of the Wanaka Airport community for their patience through these lengthy negotiations.

'We believe the outcome will create the best possible foundation for the airport's future and the role it has to play in our region's connectivity,' he said.

The 100 year lease runs from April 1.

The corporation will pay the council $14.5 million for the ground lease and related assets.

The lease does not affect or vary the terms of current leases held by commercial operators.

The council retains ownership of airport land containing the council's wastewater treatment plant, Project Pure.

Queenstown Airport chief executive Colin Keel said the lease marked the beginning of an exciting era in the airport's history.

'Wanaka Airport has a proud aviation history, with a passionate and active airport community. As the new custodians of Wanaka Airport we look forward to working with key stakeholders and the communities we serve in shaping the future vision of the airport and building on this heritage.'

'The long-term lease provides QAC with confidence to invest in, plan and develop the airport as important infrastructure for regional aviation growth,' said Mr Keel.

The corporation intends to talk with commercial lease holders over the next few weeks, before consulting the wider community, airlines and other stakeholders about future airport opportunities and commitments.

The discussions would inform development at Wanaka Airport. The corporation would also begin working on a master plan for Wanaka Airport by the end of 2018, Keel said.