The airport and its future were the subject of a lengthy discussion at a Southland District Council meeting yesterday.
The council had commissioned a review into the airport and its operations. The airport has been recording losses yearly.
The review said the airport had lost between $212,000 and $318,500 annually over the past five years. Views on the airport in the Fiordland area were mixed, the report said.
Some in the community saw the airport as important as it was part of their business, while others saw little value in it and had never even visited it, it said.
The airport is funded by a targeted rate on Fiordland ratepayers and income from operations. The Fiordland Community Board oversees the governance and council staff carry out operations.
It has a tarmac runway, which is due to be replaced, but the repairs have been deferred by the council. The airport experienced little business during the Covid-19 period.
The report said the proposal was for the council to appoint Great South to look into putting the airport on a greater commercial footing. That would involve creating a council trading organisation and also having the community board, through its Luxmore subdivision fund, paying off debt. The community board had agreed to pay back the existing airport loan of $631,797.
A district-wide rate would also be introduced and the council would consult on what level the rate would be.
Cr Derek Chamberlain said Fiordland ratepayers would be on the hook for more than $830,000 to fund the airport changes, yet anyone "could tell you what was wrong with the airport — it was poorly run".
Cr Chamberlain said poor operation by the airport had been going on since it opened in 2002.
"We do not need this high-level thinking. It needs to be run bloody properly ... It is so frustrating to see it so poorly run. The solution is staring us in the face without spending a cent."
There was no marketing or promotion for the airport, he said. No-one at the airport would answer questions about the building of hangers, yet Alexandra Airport was getting million-dollar hangers built at its airport, he said.
Fiordland Community Board chairwoman Diane Holmes, speaking at the meeting, said there was so much potential in the new proposal and she was surprised there was not more excitement from the councillors about the new airport plans.
The airport had been a risk-averse operation, run by people who knew nothing about running an airport, she said.
Cr Matt Wilson said before standing for the council he did not even know Te Anau had an airport.
Cr Darren Frazer said he had concerns about the district rate and what benefit it would bring to a Winton farmer, which his constituents would be asking.
Cr Jon Spraggon said Stewart Island had an airport but it did not receive any district rates.
Mayor Rob Scott said the plan was to give the airport a commercial focus and that was what these changes would hopefully do.
The council agreed to appoint Great South to undertake the study into putting the airport on a commercial footing. The study would cost $171,060, to be funded from the Luxmore subdivision reserve.
A project governance group would oversee the work of Great South.
