Peak work, peak cost

Skyline Queenstown Gondola. PHOTO: ARCHIVE
Skyline Queenstown Gondola. PHOTO: ARCHIVE
The replacement of its gondola and upgrade of other facilities on Bob’s Peak, above Queenstown, isn’t coming cheap for Skyline Enterprises.

In the shareholders’ September update, Skyline chair Peter Treacy says the company had been budgeting $295million. That covers the new gondola, which is operational; the completed new bottom terminal; a carpark, due in April; and the restaurant extension, which has started.

But add in the finishing touches — like a new luge chairlift and clearing more trees along the gondola route, to ensure they don’t fall on the gondola line and cause a fire — and by 2027 the all-up figure will be more like $310m.

Treacy says most of the tree-felling’s been completed, but it will be a complex job felling those remaining and removing the logs and debris.

Skyline’s continuing to work with Queenstown’s council to clear a slip that carried logs and debris into Queenstown Cemetery during September’s massive storm, affecting 207 of the 1643 plots, Treacy says.

Meantime, the company reported a 16% increase in revenue to $106m for six months, confirming a full dividend will be paid to shareholders.