The Commerce Commission will not be conducting an investigation into Auckland International Airport Ltd's (AIAL) acquisition of a minority stake in Queenstown Airport, with Auckland Airport announcing it will "strongly defend" High Court proceedings it was served yesterday.
On July 8, the strategic alliance between Auckland Airport and the Queenstown Airport Corporation (QAC) was publicly announced, with QAC creating 24.99% new shareholding, which it sold to Auckland for $27.7 million.
Air New Zealand made a complaint with the Commerce Commission on the basis it would give rise to a substantial lessening of competition in a market.
However, the commission considered that to be "unlikely".
After the Commerce Commission's decision, Auckland Airport was served notice of High Court proceedings in relation to the alliance.
On Tuesday, the Queenstown Community Strategic Asset Group (QCSAG) and Air New Zealand filed applications with the High Court at Invercargill, seeking a judicial review of the share issue, claiming it breached certain provisions of the Local Government Act 2002.
They are also seeking an injunction preventing the issue of any further shares to Auckland Airport or the entering into a shareholders' agreement between Auckland Airport and the Queenstown Lakes District Council, as is proposed as part of the transaction announced July 8, 2010.
The Queenstown Lakes District Council, QAC and AIAL are named as first, second and third defendants respectively in each of the proceedings.
However, Auckland Airport believed the claims were "without merit" and would strongly defend the proceedings, the company said in a statement.
"It is unfortunate that these legal proceedings have been brought by parties who wish to attempt to frustrate an alliance intended to deliver great benefit to the development of the tourism industry in the Queenstown Lakes district.
"We believe these parties have vested interests and do not necessarily have the wellbeing of the wider Queenstown community at heart."
The QCSAG was acting as a trustee for a "self-appointed group of high net worth local business people", the statement said.
"This group has chosen to ignore the significant commercial benefits that will flow to the broader Queenstown community from this transaction through increased tourism activity and improved facilities at Queenstown Airport.
"We do not intend to allow these legal proceedings to distract from our focus on making the alliance work in the best interests of both airport companies and their shareholders, and the wider Queenstown Lakes District community."
