Air New Zealand, which has been critical of the proposed strategic alliance between Queenstown and Auckland airports, intends forging ahead with a request for a High Court judicial review of the process.
In a joint statement released on Monday night, the two airports announced they had cancelled the subscription agreement that allowed Auckland to increase its shareholding in Queenstown Airport.
However, the airline's general counsel, John Blair, said yesterday questions remained unanswered about the actions of local authorities and exposure of consumers to "anti-competitive agreements" between the two airport operators.
Queenstown Airport Corporation last year created and sold a 24.99% new shareholding to Auckland for $27.7 million in a controversial agreement, publicly announced last July.
Auckland had until June 30, 2011 to increase its shareholding to between 30% and 35%, but AIAL chief executive Simon Moutter said the cancellation of the agreements was in the best interests of the airports, the council and the community.
Mr Blair said the news was "belated acknowledgement" the transaction "should never have been concluded and implemented, as it was with information deliberately withheld from the 100% shareholder".
He said the transaction also showed "contempt" for the legal requirements of local government, which were there to protect community assets.
However, the alliance still left customers exposed to "anti-competitive agreements" between Queenstown and Auckland airports. Therefore, Air New Zealand remained opposed to it and was continuing with its application for a review.
Monday's announcement resolved only one of "a number of issues", Mr Blair said.
"We remain firmly of the view that even the 24.99% was achieved illegally and that transaction is invalid.
"It was concluded without the knowledge of the Queenstown Lakes District Council [the 100% owner] and should not be permitted to remain unless it is approved by the council after a proper community consultation process including full public disclosure of all relevant facts."
Mr Blair said the proposed agreements did not appear to have had the "appropriate level of analysis" from the Commerce Commission, which said in August it would not be conducting an investigation into the alliance.
"[The commission] informally cleared the agreements assuming Auckland Airport and Queenstown Airport do not compete, but only thinking as far as whether either airport was subject to competition from another airport at the same origin/destination city," he said.
"The competition requires analysis of the Tasman market."
Meanwhile, Queenstown Community Strategic Asset Group spokesman John Martin declined to comment yesterday.
When asked for his thoughts on the joint announcement made on Monday, he said he was "still under the court rules" and was unable to comment.
When asked to confirm the group was going ahead with its legal action, he refused to confirm or deny it.
"At this stage ... I have got no comment. I am bound by the High Court rules and I'm not going to break them."
