“However the decision on what airport to use is up to airlines - we don’t get to instruct the airlines how to run their business. They will not expand into new commercial routes unless those routes are financially viable, that’s the bottom line.”
The runway decision is part of a wider, just-released 30-year masterplan for the airport discussed with WRAL’s five council shareholders yesterday – Hamilton City, Waipā District, Waikato District, Matamata-Piako District and Otorohanga District councils.
While WRAL will continue to run a strong diversification strategy, the company will continue to focus heavily on the aeronautical business, Morgan said.
“Aviation is our prime purpose and that won’t change. In the last five years, we’ve invested around $30 million in aeronautical assets because the airport is an important and successful long-term regional asset and must remain that way.”
Other WRAL assets include the Jet Park Hamilton Airport Hotel which reopened in August last year as well the commercial and industrial development of Titanium Park.
In the last six months, WRAL has purchased other airport infrastructure including hangars plus buildings belonging to the flight school which closed during the Covid-19 pandemic.
Morgan said extending the designation timeframe was not an option. Planning rules meant WRAL would be required to show “substantial progress and effort” which would require significant investment without a supporting business case.
“The detailed technical review is clear. An extended runway is not necessary for our future and it’s good to have that clarity.”