Capital expenditure of about $40 million over the next three years probably could not be generated by Queenstown Airport Corporation's own resources, so the board had needed to look at "wider options", QAC chairman Mark Taylor says.
Mr Taylor made the comments during the surprise announcement on Thursday that Auckland International Airport Ltd (AIAL) had bought a 24.99% share in the company, which previously had the Queenstown Lakes District Council as its sole shareholder, for $27.7 million.
Queenstown Lakes Mayor Clive Geddes said at the associated press conference Queenstown Airport had been courted by three other New Zealand airports and one private company "at least three or four times" during his nine years as mayor.
Each time he had referred the parties to QAC directors because it was their responsibility to advise council on those matters, he said.
Mr Taylor, chairman for three years, said the airport had managed to grow without outside help.
It was a much less complex organisation and such assistance was not as necessary as it was today.
"It's the second-busiest airport in New Zealand now and it's gaining levels of sophistication that are needed to operate the airport that weren't a requirement before.
We have additional regulation we now come under and we can expect more regulation in the future."
Mr Taylor said QAC was "straight away" committing to a $4.6 million expansion of the near-capacity baggage make-up area, plus an expansion of the international arrivals area.
Mr Taylor said the board was looking for more than just new capital and they considered Christchurch Airport in their analysis.
However, 70% of international tourists came through Auckland Airport and 70% of those came down to Queenstown, "so they were the obvious standout candidate to be able to get the most direct alliance and mutual benefits".
The annual dividend was estimated to be at least $2 million a year, after a special upfront dividend of $10 million.
Mr Geddes said, for a community of the district's size, "that is a significant amount of money that is going to arrive on the council's table every year and that's why I'm making the point the council and the community have to think very carefully about how they intend to use this money so they maximise the benefit across the district."
Mr Geddes said there were no specific projects he personally wanted to see carried out with the dividend and he deferred to district consultation.
"You will all be aware we've just adopted an annual plan and it obviously does not include those monies.
"We'll put up some ideas as a starter, but don't ask me for them now because that's got to be a discussion for the whole council."
AIAL chairman Tony Frankham said at the press conference Auckland Airport had seen the potential for a working relationship with Queenstown Airport for a long time because of the "jewel-in-the-crown tourism opportunities it produced".
"We believe that Auckland Airport is a mature gateway to New Zealand with significant assets, the predominant ones in this case being our people, can add great value to Queenstown, and we can unlock value for the Queenstown Airport company and the community, at the same time bringing benefit to Auckland airport by enhancing multidestination travel and persuading the airlines to grow that."
