AKL Paid $27.7m to “Add Value to Queenstown”Queenstown Airport needs a projected $40 million of capital to meet unexpected growth and the deal with Auckland International will help achieve this, the resort's airport boss told those at the NZ Airports conference. Queenstown Airport chief executive Steve Sanderson and Auckland International chief executive Simon Moutter, speaking afterwards to the Southland Times , outlined the economics of the much-publicised $27m alliance between the airports. Mr Sanderson said Queenstown had already exceeded its projected passenger numbers, with 810,000 people using the airport this year and one million expected next year. Projections estimated about 700,000 people would use the airport this year. The terminal was built to take a mix of 95% domestic and 5% international users but overseas traffic had grown to 22% of the total. “The terminal was not built for so many international passengers. That's the demand,” he said. Mr Sanderson said Christchurch Airport was not a contender for an equity partner because it competed for business with the lower South Island. The Auckland alliance reduced risk and allowed Queenstown to move ahead with capital projects, he said.” That's why we went for new equity.” Mr Moutter said $10m was earmarked to promote Queenstown. The airport was not driving growth, it was meeting growth as the town's popularity increased, he said. He said it was a struggle to keep up with rapid growth and maintain visitors' expectations unless there was investment. Australian visitors were flocking to Queenstown and that revenue and the alliance was driving a “very heavy capital focus.” “Otherwise you forfeit the opportunity. (Auckland) paid $27.7m to add value to Queenstown.”
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