MEDIA RELEASE January 20, 2004
INFRATIL BACKS PROSPECT OF SUCCESSFUL COMMERCIAL AIRPORT AT WHENUAPAI
New Zealand listed public company Infratil Ltd, a successful international investor in airports, says a commercial
airport at Whenuapai servicing low-cost airlines has every prospect of succeeding, and stimulating development of an
associated business park and other amenities.
Under the company's partnership agreement with Waitakere City Council it will contribute all of the development capital
required to obtain the necessary consents and convert the present military airport to commercial use, if the Government
gives the concept the green light.
In its submission to the New Zealand Defence Force, Infratil says this is likely to initially involve a capital
contribution of approximately $50 million to upgrade the runway and terminal facilities.
The company says there is encouraging interest from airlines and it would be desirable to start developing the
commercial airport as soon as possible while the Air Force winds down its operations. Infratil has experience in
managing airports where military and commercial uses co-exist.
Infratil spokesman Tim Brown said today that a commercial airport at Whenuapai is not some "Westie" dream, but
potentially a sound venture for an investor taking a long term view. It could deliver competition, meet changing airline
industry needs, stimulate air travel by attracting new operators and providing material benefits for travelers.
"We have researched this carefully, and we would not be involved if we did not think the prospects for a successful
commercial airport are encouraging".
The Infratil submission estimates that about half of the 311 hectare Whenuapai site will be required for commercial
airport operations. Much of the rest of the site could be developed as an associated business park, possibly with some
recreational and community facilities.
The submission says this will give the Defence Force a far better return on the land than alternative development
proposals, which involve the destruction of the existing airport infrastructure. The more successful the airport, the
more valuable the associated surrounding land will become.
"Our partner, Waitakere City, well understands the enormous positive contribution that a successful commercial airport,
with an associated business park, will make to the northwest in terms of the economy and jobs." Infratil envisages that
a commercial airport at Whenuapai would never approach the scale of Mangere, but that it could readily be the base for
low cost air services to New Zealand cities and towns, to the east coast of Australia and destinations in the Pacific.
It estimates Whenuapai could stimulate a market equivalent to 15% of the aviation market in Auckland in 10 years time.
Mr Brown says smaller airlines offering low cost, no-frills services, would welcome the lower cost structure of
Whenuapai and its lack of congestion. These benefits would be passed on to customers.
" It is not as though Whenuapai is in some fringe location. These airlines realize that half the people in the Auckland
region live nearer Whenuapai than Mangere".
Infratil, listed on the New Zealand Stock Exchange, has some 20,000 New Zealand shareholders and bond holders.
It owns 66% of Wellington airport, and has experience in managing environmental, social and civil aviation issues in an
urban area.
It is also owner of Glasgow Prestwick International Airport in Scotland, one of the UK's fastest growing airports, which
has more than doubled passenger numbers since Infratil acquired a controlling interest in 2001.
Infratil has a solid record of working in partnership with local bodies, and working closely with local communities. The
company intends to work with local communities in Greenhithe and Paremoremo to allay their fears about noise from a
commercial airport at Whenuapai. It says 80% of take-offs, which generate more noise than landings, will be to the west
of the airport.
Mr Brown said it would be ludicrous to tear down the Whenuapai airport and breakup the runways without even attempting
to create a commercial airport and business park.
"If we can't succeed, the Government can take the land back, and all of the other options will still be there", he said.
Mr Brown said the way forward was for the Crown, NZ Defence Force, Waitakere City and Infratil to work closely together
to build up a successful civil aviation operation, and to use this at the basis for ancillary commercial development of
the surrounding area.
(The submission can be downloaded from www.infratil.com