Oamaru’s underperforming airport could soon be cleared for take off, but councillors have been told looking to the skies may not be the answer.

The significant amount of “underutilised” land at Oamaru Airport which could be leased out was one of its “greatest strengths”, Waitaki district councillors were told this week.

Waitaki District Council airport manager Matthew Sisson said a key, consistent message from a small airports conference he was at recently in Wellington was that the majority of airport revenue was non-aviation.

Mr Sisson cited one “very successful” airport in the North Island where aviation revenue was 15% — and “they don’t want any more”.

Christchurch Airport recently reported a $33 million profit and “not much of it came from aviation”, he said.

“It’s about how we harness the land we have and use it the right way for our community and our setting.”

There were restraints and the council would not be able to sell off blocks of land for housing developments for example.

But the land could be leased out.

The flat land was suited to a solar farm or could be turned into a regional freight/logistics hub, an Oamaru Airport Strategy and Development Business Plan, approved on Tuesday, said.

The council currently relied on farming operations as a stable revenue source, the document said.

There was a risk these tenants could lose confidence or choose not to renew leases if there was uncertainty around what was to be done with the airport’s land. 

This would weaken rather than strengthen the airport’s financial position, Mr Sisson wrote in the strategy.

Councillors at Tuesday’s full council meeting also raised concerns not to take these tenants for granted.

The airport’s close location to key transport link State Highway 1 and rail infrastructure could also be harnessed, it was argued in the strategy.

There were strong opportunities for freight and industrial development, while Oamaru could take advantage of Timaru’s growing cruise ship market to boost regional tourism.

Other opportunities included limited scheduled passenger air services linking up Oamaru with Christchurch.

The airport had historically underperformed financially, operating at a deficit, and many proposed development opportunities would require substantial capital investment.

And it would be a challenge to compete with larger regional airports.

The strategy was deliberately high level, Mr Sisson wrote in his report.

The council is planning for a potential future without Oamaru’s flight school.

New Zealand Airline Academy made the ‘‘tough’’ decision not to renew its lease at the airport in May.

The Oamaru Mail reported last month that negotiations were taking place to see if an agreeable solution to keep the flight school in the town could be found, with local politicians and prospective political candidates involved.

No further announcements had been made by the time this newspaper went to print.