Mixed reaction to Wanaka Airport land purchase

Friday, 9 December 2016

Warbirds Over Wanaka general manager Ed Taylor is keeping a close eye on the governance review of Wanaka Airport.

Wanaka aviation industry reaction to the Queenstown Airport Corporation's strategic land purchases near Wanaka Airport is mostly positive, but some reservations exist.

They include the unknown outcome of an ongoing governance review, questions about who will pay for the corporation's intended development of the airport and fears recreational aircraft users will be 'pushed out of the way'.

There is demand for more private hangar space at Wanaka Airport.

Reassurance that future development will not impact on Warbirds Over Wanaka International Airshow - which has an estimated $21.6 million economic impact - is also being sought.

Shaun Gilbertson is the spokesman for a group of recreational pilots who lease private hangar space at the airport.

Wanaka Airport earned modest annual earnings (before deductions) of about $237,000 in the year ended June 2015.

Warbirds Over Wanaka Airshow supports more development of airport land next to State Highway 6.

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The group has made a submission to the Queenstown Lakes District Council's governance review, to be heard publicly early next year.

Gilbertson said the group was not opposed to the corporation's 106ha land purchase this week, but it was questioning if ratepayers would share capital development costs with airport users.

'They had an opportunity and they went away and took the opportunity, which is fair. I am just concerned about where the recreational people will be [based] in the future, and about the capital development of the airport . . . Not all the costs for that need to come from the users.

'I think the council is very good at supporting sporting clubs, and that is what we are, really, a sport aviation club. We don't want to be pushed out of the way as has happened in Queenstown.

'We are a big part of what happens at the airport. And we are an integral part of keeping people employed at the airport maintaining aircraft,' Gilbertson said.

There are 14 private hangars at Wanaka Airport housing an unknown number of privately owned aircraft.

There is demand for at least another 12 private hangars to house about 23 more aircraft, according to a report by aviation consultants Astral.

The corporation-commissioned report also says 'significant CAPEX will be required over the next 15 years largely to fund land acquisition and infrastructure development, as well as for asset maintenance and upgrade'.

'Revenue will not be adequate to fund this programme and a considerable debt or equity injection from the shareholder will be required.'

The report, dated April 2016, noted in the financial year ended Jun 2015, Wanaka Airport's gross revenue was approximately $472,000 and earnings before deductions were $237,000.

The Astral report also notes future growth will come from increased demand for 'high value privately owned aircraft'.

Other demand included NASA (super pressure balloon launches); operational offices and reception facilities for sport aviation activities; hangars and bases for helicopter and general aviation, including flight training; ancillary services such as maintenance and repair; aircraft parking, in particular corporate jet overflow from Queenstown airport; and charter air services.

Wanaka Airport Users Group chairman Bill Day was positive about the corporation's land purchase.

'I think it was a wise purchase. Airports and nearby residents are never a great mix. It was a good move to purchase this land while it was possible. It will protect the airport for the future and avoid many of the issues that Frankton [Queenstown Airport] faces with its residents,' Day said, in an email to Stuff.

Further comment from Day was not available as he was travelling.

Warbirds Over Wanaka International Airshow general manager Ed Taylor said he thought it was a 'great thing for the airport to own as much land as possible'.

The airshow trust had put in a submission to the governance review because it wanted to minimise negative impacts on the airshow, he confirmed.

'We would be concerned about any major development on the eastern side [Clutha River] of the runway because that could impact negatively on the airshow.'

The best case scenario, from the airshow's perspective, would be to obtain and develop more land on the west side (State Highway 6) of the airport, leaving the eastern side relatively undeveloped so it could be used for airshow pyrotechnics and so aircrafts could avoid flying over buildings, Taylor said.

NASA has confirmed an interest in building a permanent facility for annual balloon launches and would like a site of minimum 2500m2.

It is understood it has been proposed that NASA's launch area could go on the eastern side of the runway so it would not impact on normal airport activities.

During NASA's two balloon campaigns, airport operators agreed to flight restrictions and delayed flights or made other contingency plans.

MORE INFO:

The Queenstown Airport annual profile reports Queenstown is one of Australasia's fastest growing airports. It is the fourth biggest in New Zealand, behind Auckland, Christchurch and Wellington.

The Queenstown Lakes District Council commissioned a Wanaka Airport Strategy business case from consultants Rationale. It was released in September.