Dunedin International Airport confirmed just two companies would now be allowed to operate between the airport and Dunedin as of next month.
At the moment, 30 shuttles owned by 12 companies operate at the airport.
Airport chief executive John McCall said complaints from customers of poor service and aggressive drivers trying to gain customers had driven the airport manangement to reorganise the licensing system.
The tender process, which began in July, was "rigorous and comprehensive", Mr McCall said.
Changes to operating criteria were laid out to improve the quality of service for users.
These included requirements for operators to use vehicles less than seven years old, guidelines on uniform and a health and safety plan.
Mr McCall said he was satisfied with the process and believed the right decision had been made.
Southern Taxis, a Dunedin-based company, and Super Shuttles, a national franchise, were awarded licences.
Eight bids in total were received, with only six of those coming from the existing 12 operators.
The airport would monitor the performance of the new licence holders and ensure other operators were abiding by the new guidelines, Mr McCall said.
The airport would not hesitate to take legal action against operators who disregarded these.
The airport was offering consumers two different economic models and Mr McCall believed having a smaller number of operators would reduce confusion.
He believed the two operators offered a better all-round service to customers, who would often be looking for transport both from and to the airport.
There would be nothing stopping people from dropping customers off at the airport.
The advantage of the licences would be in being allowed to park at the designated rank, he said.
The new service would come into effect on October 1 and the airport was reliant on existing operators to continue working from the airport until then.
"We can assure users of the airport that they will continue to have transport to and from the airport," Mr McCall said.
While there had been some disgruntled operators, Super Shuttles were more than happy with the outcome, southern regional manager Brian Pentecost said.
The business was pleased to be given the opportunity to increase its scope in Dunedin and provide a quality, economical option to the public, he said.
Super Shuttles is operated by local franchisees and Mr Pentecost would come to Dunedin to recruit new owners and operators within the next month.
Brian Powell, a current shuttle operator, said the airport had left local operators out in the cold by awarding a sizeable licence to Super Shuttles.
Mr Powell said of the 14 vans allowed to operate at the airport, 12 would be Super Shuttles' and two would be Southern Taxis'.
"There has been a loss of local jobs to local people."
He hoped to find work in the city, but said the airport's decision had left about 30 people out of a job with only one month's notice.
Calvin Hooper was one of those operators facing an uncertain future.
He had only been in the shuttle business for six months.
After he bought a new airport-approved van and paid the fee to work from the airport, he received a letter within three days informing him he had to tender for his licence.
"It is disgusting what they have done to me," he said.
He chose to not put in a tender for a licence because he would have had to buy a newer van and pay further fees.
He also said the option of purchasing a Super Shuttle's franchise was out of the question as it cost about $90,000 all up.
Southern Taxis declined to comment when contacted yesterday.
- Ellie Constantine
