The Queenstown Lakes District Council has refused a request to refer a resource consent application seeking a change of status for a Jacks Point airfield directly to the Environment Court.
Skydive Queenstown wants the status of its base changed from an airstrip to an airport to enable more flights.
But the application has attracted objections from a stream of neighbouring residents concerned more flights would mean more noise.
Of the 82 submissions received, 79 were opposed, two were neutral and one was in support.
The council has decided the consent will be heard by independent commissioners.
On June 28, a week after submissions closed, the company asked the council to refer the consent directly to the Environment Court instead.
In a letter to the council, Skydive's agent, Russell Bartlett, said there was a "substantial likelihood" any decision made by the council would be appealed to the Environment Court whether the proposal was granted or refused.
"Dealing with the matter in a single process will ultimately be more efficient and economical for all parties than participating in a council hearing followed by an appeal," he said.
The council gave reasons for declining the request, including the large number of submitters who "may be excluded from the process if this application is first considered by the Environment Court".
The council maintained its independent commissioners were "well skilled" on noise assessment and aviation safety, and while there may initially be economic savings to Skydive [in going directly to the Environment Court], there was no overall economic advantage.
"Council considers that the principles of the Resource Management Act are best served in this case by the application being considered by council's commissioners," the council told Skydive Queenstown.
The council's strategy committee will discuss the issue tomorrow.
Skydive Queenstown operates a maximum of 35 flights per day.If consent was granted, the flights would increase, but by how many is unknown as yet.
Flights would be limited by noise controls and would depend on the type of aircraft used.
Many Jacks Point residents lodged submissions opposing the status change, with some saying they were already subjected to excessive noise emanating from the Skydive Queenstown base.
The council, which owns a reserve adjoining the site, made submissions against the proposal for much the same reasons as residents.
"Unrestricted increase in aircraft movements would have a detrimental effect on the public's quiet enjoyment of the reserve," the submission said.
