The Rotorua District Council will ask for public feedback on a proposal to transfer Rotorua Airport's assets to the airport company.
The move could see the airport's operations and the council's asset ownership merged into a single entity, Rotorua Regional Airport Ltd, with the council retaining its 100 per cent shareholding in the airport.
Rotorua mayor Steve Chadwick said the proposed asset transfer would improve transparency, accountability and ultimately the commercial performance of the airport operation.
The council is responsible for the airport's ongoing capital development and owns its core infrastructure assets, while the airport company runs the day-to-day operations.
Under the proposed asset transfer, airport assets valued at $46 million would be transferred to Rotorua Regional Airport Ltd, alongside about $18.6 million of debt associated with the airport's development.