Timing of airport's move to corporate structure unclear

Air traffic controllers Suzy Ellice and Flight Lieutenant Mark Miller, both of RNZAF Base Ohakea, take in the view at Wanaka Airport in 2009. Photo by Matthew Haggart.

It has long been accepted Wanaka Airport might have to become a corporate entity so it can raise funds to undertake improvements outlined in the airport's 2008 master plan.

However, airport committee chairman Leigh Overton says it is not clear when that might happen.

The committee has already begun working with the Queenstown Airport Corporation but has yet to move to a corporate structure, such as a council-controlled trading organisation with a local board.

This was an option outlined in the 2008 master plan.

"Who knows what will happen. At some stage it will probably become corporatised, but in quite what format hasn't been decided," Mr Overton said in March.

During the 1990s, Wanaka Airport was earning a modest income, which covered operational spending and provided a small surplus for capital improvements.

But now it has an ongoing annual debt-repayment programme to cover the $650,000 cost of resealing the runway in 2007, with annual debt repayments to 2018-19 ranging from $39,000 to $60,000 a year.

Operational spending will gradually increase over next 10 years, in line with growth, from $329,000 this financial year to $606,000 in 2018-19.

The capital budget for each of the next 10 years is generally less than $1 million, except for 2012-13, when construction of a $2.1 million terminal and other facilities should begin, a project that has been delayed since 2008.

Ground leases continue to provide the main source of airport income and have more than doubled since 2005, with the income from landings varying depending on whether it is a Warbirds Over Wanaka airshow year.

The air traffic growth in 2008 suggested services would increase between 2013 and 2017, with domestic jet aircraft possible by about 2020.

Taking off
Wanaka Airport facts and figures:

• Income from landings
Year ended June 2010 (air show year):
$113,000.
Year ended June 2009 (non-air show year):
$107,500.

• Income from ground leases
Year ended June 2010 (excl rates): $234,500.
Year ended June 2005 (incl rates): $106,900.

• Operational spending
2010-2011: $329,000.
2018-19 projection: $606,000.

• Capital spending (including debt repayment)
2010-11: $490,000.
2012-13: $3.2 million (including $2.1 million for construction).