Media Release
23 July 2007

Council to consider proposal released by Auckland International Airport Limited

Manukau City Council is now considering its course of action following the announcement from Auckland International Airport Limited (AIAL) that it has received a proposal from Dubai Aerospace Enterprises (DAE).

An outline of the proposal was announced to the New Zealand Stock Exchange this morning, and AIAL directors are recommending the proposal in the absence of a superior proposal.

Manukau City Council owns a 10.05 per cent shareholding in AIAL.

Manukau Mayor Sir Barry Curtis says he is very concerned and annoyed to learn that the board of AIAL is recommending that DAE take a 51 per cent controlling interest in a new airport company for Auckland.

“I am personally totally opposed to a foreign company obtaining a controlling interest in our domestic and international airport. This has serious implications for New Zealand. The airport is also situated on a large strategic landholding bounded by a very significant part of the Manukau Harbour and foreshore. This resource is of enormous economic, social, environmental and cultural value to the people of the Auckland region and New Zealand.

“It is after all, the gateway to New Zealand, and among other matters the catalyst for the promotion of tourism in our beautiful country. Moreover the future of New Zealand relies on the Auckland International Airport remaining an international hub within the Pacific. It should not be subjected to any influences which could be detrimental to the social and economic interests of New Zealand.

“I am aware the Australian government has placed a restriction on any foreign interests having a majority shareholding in their airports and the same should apply in New Zealand. Regretfully this was not imposed at the time of corporatisation of AIAL in 1987.
“Again I also hold strongly to the view that the Manukau City Council should retain its shareholding in the airport as a strategic asset for the benefit of present and future generations of Manukau ratepayers.

“I treasure our 10.05 per cent stake in the company. Since it was listed in 1998 ratepayers have received some $108 million in dividends, special dividends and return of capital. It is a magnificent long-term investment for our people.

“I have fought long and hard to retain our shareholding whilst all other local authorities apart from Auckland City have over the years sold their shareholdings for well below the huge value the shares now reflect.

“This matter is of major importance to the people of Manukau city, the Auckland region and New Zealand and I have no hesitation in expressing my opposition to a foreign company taking a controlling interest in our airport. Who knows where this could finish up?”

DAE’s proposal involves an amalgamation and establishment of a new company, Auckland Airport Ltd, in which DAE would invest up to NZ$2.6 billion and hold between 51 per cent and 60 per cent of the shares.

Shareholders will be asked to vote on the proposal at a meeting in November 2007.

ENDS

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