The airline and the Queenstown Community Strategic Asset Group lodged independent but related claims in the High Court at Invercargill in August, seeking a judicial review of the transaction and an injunction to stop any further shares being issued.
The other defendants are the Queenstown Lakes District Council, the Queenstown Airport Corporation and Auckland International Airport Ltd.
The amended claim, dated November 9, names QAC directors Mark Taylor, Duncan Fea, Murray Valentine, James Hadley and, from June 10 this year, Alison Gerry.
Air New Zealand says the decision by the airport directors to enter into the alliance did not comply with several requirements of the Local Government Act 2002 (LGA) and was not in accordance with the corporation's statement of intent.
The claim said before June 29 this year, in relation to capital subscriptions, the statement of intent said "no capital injections from shareholders are expected in the current period".
On or about June 29, the council approved the statement of intent, which was amended under the capital subscription title to read: "The company will consider the need for and sources of capital subscriptions as may be required".
The claim said the statement of intent "expressly provided and contemplated that QAC was only to consider the need for and sources of capital subscriptions as may be required, not that QAC go further and implement any capital subscriptions without a decision properly made by [the council] in accordance with the LGA to agree to a capital subscription".
"The transaction was ultra vires QAC and/or in breach of sections ... of the LGA and was unlawful and illegal and should be treated as void and of no effect," the claim said.
However, if the statement of intent did allow the directors to "go further" and implement capital subscriptions, Air New Zealand claimed it did not comply with requirements of the LGA and the actions and decisions of the airport board relating to the statement of intent were "unlawful".
The airline said the statement of intent did not publicly state all of its activities and intentions for the year, including the intention to "conclude a transaction which had the effect of transferring 24.99% of the ownership of Queenstown Airport away from QLDC and which gave significant rights of management, influence and control to a minority shareholder".
It also alleged the statement of intent did not provide an opportunity for the council to "influence the direction of QAC" related to raising additional capital.
Mr Taylor declined to comment yesterday on the amended claim as it is before the court.
