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Home / Business / Companies / Airlines

Air NZ planning for second Auckland airport

By Simon Louisson
21 Aug, 2007 01:09 AM3 mins to read

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The debate over Whenuapai as a second airport for the region has been raging for years.

The debate over Whenuapai as a second airport for the region has been raging for years.

KEY POINTS:

Air New Zealand has been looking at building a domestic terminal at Whenuapai air force base, should the West Auckland airport become available for commercial use.

Air NZ, which along with Auckland International Airport (AIA), originally opposed commercialisation plans of the base, said it has had a team
looking at possibilities for Whenuapai over the past couple of months.

"The first stage of the team's work has led the airline to form a more favourable view on the possibilities that Whenuapai may offer our domestic operations in the future," Air NZ spokesman Mike Tod said.

"Our next steps are to investigate the issues around the use of Whenuapai as a dual use domestic airport, including Air New Zealand building and owning its own terminal."

The prospect of using the base was raised in 2002 and three years ago Economic Development Minister Jim Anderton said there was nothing to stop a commercial operator using part of it.

Infrastructure investor Infratil, the majority owner of Wellington International Airport, planned to lease part of the Whenuapai in a joint venture with Waitakere City Council.

However, commercialisation plans were put on ice two years ago when the Defence Force said it would not consider any proposal to lease part of the base for commercial use until nearer 2015, when the air force was scheduled to consolidate operations at Ohakea, in the Manawatu.

Infratil, which this month revealed it had teamed with the NZ Superannuation Fund to take a 6 per cent stake in AIA, planned to invest $50m to upgrade Whenuapai's infrastructure, including a passenger terminal.

Mr Tod did not accept Air NZ had revised its position since it was revealed last month that up to eight parties were reported to be interested in bidding for AIA.

Last month, state-backed Dubai Aerospace Enterprise Ltd (DAE) offered to buy between 51 per cent and 60 per cent of AIA, in a $2.6 billion deal.

Air NZ's relationship with Infratil has been fraught because of Infratil's strong opposition to firstly the airline's plan to ally with Qantas, then its code share arrangement with the Australian airline.

NZPA understands Air NZ had top level talks with Infratil when Air NZ's alliance plan with Qantas was scuttled by regulators. But the talks were called off when Infratil opposed the code share plan that would have seen flights across the Tasman reduced, particularly from Wellington.

Infratil's Tim Brown said Infratil would have welcomed Air NZ to Whenuapai and had offered it favourable terms. He was unaware of Air NZ's renewed plan.

One difficulty for Air NZ is that it uses AIA as its main hub and its regional dominance comes from feeding off other airlines and its international operations that use that airport.

Even with substantially reduced landing fees, a successful operation out of Whenuapai could dilute its success at AIA.

The Defence Force has opposed joint use of the airport, a position that Infratil has been attempting to modify.

The total rebasing of the air force at Ohakea is seen as a diminishing prospect.

Infratil does not believe the development of Whenuapai will significantly undermine the viability of AIA. It argues a second Auckland airport as attracting different carriers and growing the market.

Whenuapai, which is surrounded by housing, is unlikely to become a major airport as resource consents are likely to restrict operations on night operations.

- NZPA

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