Agreement to withdraw legal action over Queenstown Airport

Auckland Airport today welcomed the decision by the Queenstown Community Strategic Assets Group (QCSAG) and Air New Zealand to withdraw their legal actions against Queenstown Lakes District Council (QLDC), Queenstown Airport and Auckland Airport.

The legal actions had sought to overturn Auckland Airport’s 24.99% shareholding in Queenstown Airport, announced in July 2010. A High Court hearing was due to start next week in Queenstown.

The agreement to withdraw the legal actions does not impact on Auckland Airport’s existing shareholding, nor has Auckland Airport given any new shareholding undertakings.

As announced on 21 March, Auckland Airport and Queenstown Airport have already cancelled an option to subscribe for additional shares. Auckland Airport has also given an undertaking to QLDC that it will not seek to increase its shareholding beyond 24.99% without the involvement and consent of QLDC.

Simon Moutter, Auckland Airport chief executive, said, “Since that March announcement, we’ve worked hard with all parties to find a resolution. We’re pleased that this common-sense and positive decision has been achieved. We have been as disappointed as anyone that the affected parties have had to spend considerable money on legal costs to date. The pragmatic decision to withdraw the legal actions allows everyone to avoid incurring further legal costs and to finally move on. We can all focus without distraction on our mutual interest of growing tourism into the Queenstown Lakes District and the South Island.”