And the part-sale of the airport could lead to increased costs to travellers and constrain tourism growth, Air New Zealand claimed last night.
A "strategic alliance" between district council-owned Queenstown Airport Corporation (QAC) and Auckland International Airport Ltd (AIAL) was announced last week, with AIAL taking a 24.9% share of the airport.
Last Friday, the Otago Daily Times reported Queenstown Mayor Clive Geddes as saying the QAC would pay the council an up-front special dividend of $10 million "in a matter of days or weeks", with the estimated ongoing annual dividend of at least $2 million to $3 million to follow.
On Saturday, the ODT reported QAC chairman Mark Taylor as saying the council, as majority shareholder, stood to receive a $10 million up-front dividend at the end of the phase two process in 12 months, followed by annual dividends of about $2 million.
QAC chief executive Steve Sanderson and Mr Taylor yesterday confirmed the QLDC would not see a cent of the $10 million unless AIAL was allowed to buy more shares to take its interest to between 30% and 35%.
Mr Sanderson said the second phase would need to go through a council-led community consultation process.
If the deal was accepted, the $10 million would be released to the council and AIAL would be entitled to one seat on QAC's board.
Then, the council would receive the ongoing annual dividend of "probably" $2 million a year, with profits also going to Auckland Airport.
"At the end of the day, AIA is a minority shareholder," Mr Sanderson said.
"The council still have full control of Queenstown Airport ... when you go over the threshold of 25% as a minor shareholder, you get more rights.
"That's predominantly why we have given 24.99% [to AIAL] - we're not diluting any powers of the QLDC."
When asked last night about the $10 million, Mr Geddes said the "overall deal" between the two parties was around AIAL wanting 35% shareholding in the airport.
If that was approved, it would lead to a second release in respect of the additional shares and a $10 million payment to QLDC.
Air New Zealand and AIAL are understood to be at odds over the cost of landing fees at Auckland Airport, with Air New Zealand saying they are too expensive.
It is concerned the same could happen in Queenstown if AIAL is allowed to increase its share of Queenstown Airport.
In a statement to the ODT last night, Air New Zealand Australasia Group manager Bruce Parton said he was "not surprised" there were serious concerns about AIAL's purchase of "a slice of Queenstown Airport".
"AIAL has displayed significant greed over several years and it would be naive to think that it is not aiming to see an increase in airline charges and airport charges, which could ultimately push up the cost of travel into and out of Queenstown and constrain tourism growth.
"Air New Zealand is aware that there is much disquiet in the local community about AIAL's purchase.
