New Zealand's Hamilton Airport To Double Rev, Passengers

Thursday March 25, 12:40 PM 

New Zealand's Hamilton Airport To Double Rev,
Passengers

   
WELLINGTON (Dow Jones)--New Zealand's Hamilton
International Airport expects a NZ$51 million
redevelopment to raise passenger growth by 50% and
double revenue over 10 years, Chief Executive Hugh
McCarroll said Thursday. 

The expansion of the airport, which will be carried
out over the next five years, will primarily boost
travel to Australia and South Pacific Islands,
McCarroll told Dow Jones Newswires in an interview. 

"We are really looking at point-to-point travel of
between four to five hours and Asian destinations are
not in that range for the type of market we're
targeting," he said. 

The airport, which until now has been servicing only
trans-Tasman and domestic travel, expects passenger
numbers to grow 50% to 180,000 a year from the present
120,000 over 10 years, which will include services to
South Pacific countries such as Fiji and Tonga. 

Over the same period, the tiny North Island airport is
also aiming to double its annual revenue to NZ$10
million. 

Hamilton Airport is owned by five shareholders -
Hamilton City Council, which has a 50% stake, and the
Waipa, Waikato, Matamata-Piako and Otorohanga District
Councils. 

The airport Wednesday announced a five-year, NZ$51
million redevelopment plan, with NZ$30 million being
allocated to create a commercial center on adjoining
land owned by the company. 

Suitable commercial partners will be invited to form a
joint venture that would be 51%-owned by Hamilton
Airport. 

"The airport won't put up any of the NZ$30 million, it
will be the commercial partners who will be doing
that," McCarroll said. 

The balance of NZ$21 million - to be funded through
bank loans and retained earnings - will go toward
improving the aviation business, including extension
of the runway to 2,500 meters from 1,900 meters;
upgrading the domestic and international terminals;
and increasing parking for bigger aircraft like Boeing
767s. 

McCarroll said the runway extension will allow the
airport to land Air New Zealand's (AIR.NZ) Airbus
A-320 fleet and Boeing-737s operated by Qantas Airways
(QAN.AU) and Virgin Blue (VBA.AU) airlines. 

"By extending the runway we could avoid the
operational issues that would crop up later," he said.


While the airport is focusing on Australia and the
Pacific Islands, it will also consider servicing other
short-haul international destinations such as Bali. 

"We don't see us as a competitor to Auckland Airport,
but just providing a complementary service for
low-cost carries who want easy, quick and convenient
operations," McCarroll said. 

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