Up, up, but not away: Hamilton Airport owners see increased value in wake of Jetstar deal

Saturday, 21 September 2024

The Hamilton Airport owners, a group of five councils, all believe their investment will rise in value with the launch of international flights.

With the value of Hamilton Airport likely to take off in the wake of Jetstar international flights the owners - five local councils - look set to hold their stakes.

“I agree there is likely to be an uplift in the airport’s value as a result,” said Hamilton Mayor Paula Southgate, whose council holds the majority 50% stake.

She said the valuation boost, as the major shareholder, “translates to good news for ratepayers”.

Southgate said that while dividend payments would also be welcome, the council needed to consider the issue of wider returns.

“Personally, I still consider there is significant potential for value uplift over the next decade,” she said.

Hamilton Mayor Paula Southgate said an increase in the value of their 50% stake in the airport was good news for ratepeyers.

“Southern links would add enormous value to the area, which again will only benefit Hamiltonians if we retain a stake.”

A spokesperson for Waikato District Council, which holds a 15.6% stake in the airport valued at $35.7m, also told the Waikato Times they expected its value to increase.

“We anticipate the value of our investment will increase over time, irrespective of the airport hosting international flights.

To date there has been no consideration given to selling our stake, and it has not been discussed referencing the future.“

They described their stake as “a strategic asset, one of significance to the region and important for economic growth and development”.

Hamilton Airport is important for Waikato’s economy, a Matamata-Piako District Council spokesperson said.

A Matamata-Piako Council spokesperson said their stake, also 15.6% and valued at $35.7m, is likely to have seen a “positive impact on the future value”.

They also said they had adopted a “strategic” position to hold the stake.

“To secure the retention of the airport as a major infrastructural facility, important to the economy of the Waikato; for tourism, business and private travel connections. Unlike Auckland Airport, the Waikato Regional Airport is not an NZX listed company.

“While Council has not formally considered selling its shareholding, any decision to do so would require consultation with the community given the significance of the investment.”

Waipā Mayor Susan O’Regan said her council also held a 15.6% stake, and that it was “very likely the value of the airport is likely to increase with the reintroduction of trans-Tasman flights”.

“That means the value of our investment asset will also increase.”

The council had “no intention of selling” shares.

“In fact, I publicly stated earlier this year that, if we could, we would probably buy more. It is a strategic regional asset with a lot of potential for growth and development, so I believe its future is incredibly bright,” she said.

“As the Mayor of the Waipā District, I can hand on heart say that I and the rest of the Council recognise how important the airport is to the economic wellbeing of the wider Waikato Region, and that is why we have been long-term investors.

“Our council has never indicated any desire to sell and it is unlikely that position will change any time soon.”

Ōtorohanga Mayor Max Baxter said his council held a 3.1% stake in the airport, valued at $7.1m, and would also retain it.

“We can still be sitting around the table,” Baxter said.

“Once you’ve sold it it’s very hard to get back again.”