Infratil says hearings on runway likely delayed to June

Wednesday 08 February 2017 05:44 PM

Infratil says hearings on bid to extend Wellington Airport runway likely delayed to June

By Rebecca Howard

Feb. 8 (BusinessDesk) - Infrastructure investor Infratil said a shortage of court space in Wellington due to the November earthquake means hearings on Wellington International Airport's bid to extend the runway to make room for long-haul flights will likely be pushed out to June.

A number of office buildings were damaged by the Nov. 14 Kaikoura earthquake.

The airport is owned 66 percent by Infratil and 33 percent by the Wellington City Council. The airport has applied to build a 355-metre runway extension in a bid to attract long-haul flights from Asia and the United States, at a cost of more than $350 million. Infratil is pushing for central and local government funding to cover most of the capital costs, arguing the investment is in the national and regional interest while not being viable on a standalone commercial basis.

The Environment Court hearings have been pending since last year. A variety of opponents, including national carrier Air New Zealand, have filed to be heard, with ratepayer and resident associations expressing concern at recent estimates that blew the cost of the runway extension out to more than $420 million.

Infratil reiterated the cost to central New Zealand of not having air links to the northern hemisphere and the rest of the region. "Over the last five years, the rest of New Zealand experienced a 39 percent rise in tourist spend, almost double the 20 percent growth of the central region," it said in a market update to the NZX. Infratil also emphasised the ongoing increase in New Zealand-China traffic is benefiting other regions "but is also out of reach of Wellington."

(BusinessDesk)

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