Queenstown Airport was sure to benefit from the expertise Auckland International Airport would bring in managing airports and extracting the maximum profit from airport operations, Craigs Investment Partners broker Chris Timms said yesterday.
Auckland airport (AIA) announced earlier this month it was spending $27.7 million to take a 24.99% stake in the Queenstown airport.
It has the option of increasing its shareholding to 30% or 35%, but that may be subject to community consultation.
The decision to sell the stake has created controversy in the Central Otago-Lakes District.
Craigs research noted that the strategic rationale for the Queenstown alliance was to co-ordinate destination promotion and route development discussions with airlines, as part of AIA's strategy to lift its key economic driver - international passengers - above organic growth rates.
"New Zealand remains a nice place to visit, AIA is the primary gateway for international arrivals and Queenstown is the premier New Zealand leisure destination," Mr Timms said.
AIA had been successful recently with route development initiatives of Continental Airlines to Houston and Jetstar to Singapore.
For those reasons, Craigs saw merit in the alliance with Queenstown.
AIA had earlier this year bought a 24.55% stake in North Queensland Airports.
Mr Timms said AIA felt it could help increase passenger volume in both North Queensland and Queenstown.
For Queenstown, AIA could help get airlines flying passengers into Queenstown directly and out through Auckland or in through Auckland and out through Queenstown.
With North Queensland, which was about half-way between China and Auckland, it could direct Asian tourists through to Auckland and south to Queenstown.
"AIA is pretty good at managing airports and that is not a bad thing to have alongside you at Queenstown. It is also developing expertise at extracting the maximum amount possible from airport operations."
AIA offered car-parking options and a large retail operation.
While airports were about the transit of passengers, they were also about providing offerings that made passengers want to spend money there, he said.
Queenstown Airport did not have to go to ratepayers for cash for redevelopment and it was getting paid by someone who was also providing the expertise.
"I don't think this is a negative story at all," Mr Timms said.
