While Queenstown Airport Corporation (QAC) chairman Mark Taylor has "some sympathy" for those critical of the decision to create and sell 24.99% of shareholding in the airport to Auckland International Airport Ltd without telling the community, he stood by the board's decision.
Mr Taylor told the Otago Daily Times yesterday the community would be consulted before any decision was made to exercise the second tranche option, which would see AIAL increase its interest in the airport, to buy up to 35% of shares.
If the decision went against AIAL, the Queenstown Lakes District Council "don't get anything" of the $10 million special dividend, he said.
"Auckland Airport's target was to own up to 35% [of Queenstown Airport].
"We, as directors, didn't have the power to do that.
"The only way to do that was to have the phase two part through community consultation."
If that level was approved, there would be "more cash available" than QAC required "so that surplus cash goes to the council".
Mr Taylor said the board had two options when it came to raising extra capital - the first would have been a lengthy process under the Local Government Act, run by the QLDC, which would have meant the board "wouldn't have known how much capital we had, who the party was or when [it would be decided], probably for 12 months".
"We were looking for more certainty than that.
"Given that as one option, we felt it appropriate [to use] the powers that the council has given to us."
Under the QAC constitution, the board has the power to issue new shares, up to 25%, to gain capital.
However, the board could not talk to the council first and then do it on its own, under the constitution.
"We couldn't have a halfway [and] we could only issue up to 24.99% without council's position being materially changed.
"What we did left the council with the 75% ... as being able to control all the [activities] was unchanged."
Mr Taylor said he did not believe the board had been "sly" in its actions.
"I have some sympathy for [the] criticisms and their position to have found out at the end of the day. I can understand they didn't find that ideal.
"However, the board only had two options ... I think we made a good decision, I think it will be good for Queenstown and we'll see a lot of positive developments."
