In his report, to be presented at QAC's annual meeting this Friday, Mr Taylor acknowledged the share deal announced in July - 24.9% sold for $27.7 million - had generated "debate" in the Queenstown community, but said that had the corporation raised debt rather than selling shares to Auckland, it could have exposed the company to "significant finance and economic risk" if passenger volumes fell.
"Unlike many other airports, Queenstown is predominantly a tourist airport and is not underpinned by business travel," he wrote.
"Tourist-based airports have more than their fair share of risk, as that can impact passenger volumes suddenly and significantly, in the form of economic shocks, oil-price spikes, wars, terrorist attacks, pandemics, accidents and natural disasters."
Mr Taylor said the QAC board was unanimous a strong and commercial equity party was needed, and by forming a strategic alliance with AIAL, the corporation could access its technical expertise and "all-important market intelligence" to grow visitors to the Queenstown region.
"Other advantages of the deal include operational synergies, which will allow a reduction in costs and improved efficiencies in the roll-out of future capital investment and property portfolio projects."
QAC chief executive Steve Sanderson also praises the share sales deal in his annual report, saying the alliance with Auckland will have "significant positive effects" on QAC's operations.
"Auckland's scale means it offers Queenstown Airport a wealth of highly relevant expertise in commercial developments, engineering and aeronautical design, route development, promotion of destinations and master planning.
"We look forward to working with Auckland Airport across a range of operational areas, helping us through the often problematic phase of evolution from a small business into a medium-sized business."
