Mayors come out in support of airport's Queensland expansion

Auckland Mayor John Banks. Photo / Greg Bowker.

The mayors of Manukau and Auckland City have spoken out in support of Auckland International Airport's latest offshore investments in Queensland's Cairns and Mackay airports.

AIAL announced yesterday that it had bought a 24.55 per cent stake in the airports.

Auckland City mayor John Banks, whose council owns a 12.71 share in Auckland Airport, says he has "absolutely no doubt" that the airport's new investment will increase visitor numbers into Auckland, especially those arriving from Asia.

"[The investments] will give Auckland International Airport and New Zealand Incorporated an opportunity to tap into massive Asian growth over the next ten years," said Banks.

"It's a golden opportunity for us to capture one of the growing markets on earth."

Cairns airport receives 700,000 overseas visitors each year, and only one per cent of those Australian arrivals currently continue on to Auckland, said Banks.

AIA's expansion into Queensland would give it the ability to channel more Australian arrivals on to Auckland, he said.

Auckland Airport is currently well-run but underperforming, said Banks.

"We cannot just sit back on a whim and a prayer and hope that we get the inbound visitor number growth we need. We've got to be strategic and the [Australian investments] are the first step in that."

Banks said the Australian expansion would have great benefits for future Supercity rate payers, bringing in foreign exchange and creating new jobs.

Manukau City Council currently owns a 10.01 stake in the airport, and when its shares are combined with Auckland City Councils, in the new "Supercity", it will own a 22.8 per cent share of the airport.

Under the Takeovers Code, owners of more than 20 per cent of a company must make a takeover bid for at least 51 per cent of the company.

The Government is introducing legislation to allow the supercity to consolidate the shareholdings of the two councils, as part of the restructuring of Auckland local government.

Manukau City mayor Len Brown said Auckland Airport's decision invest in the Queensland airports supports Manukau's aim to encourage new initiatives and strengthen Auckland's economy.

"The Manukau community has given us a very clear message that it values our investment in Auckland Airport as a strategic asset for Auckland and New Zealand," said Brown.

"As a shareholder, the council supports the strategy for the airport to grow its core business, and therefore increase returns to investors."

Auckland has around 20 million visitors each year - and with 12 million of those arriving through Auckland Airport - it made a huge contribution to the local economy, said Brown.