Auckland Airport shares

Auckland Airport (the airport) is an integral part of our regional and national transport system and economy. Auckland City Council owns, on behalf of residents and ratepayers, a 12.75 per cent stake in the airport.

There has been considerable interest from investors and other parties in the potential to significantly improve financial returns to shareholders by improving the airport's capital structure. This would most likely require a change in ownership structure through, for instance, a takeover or merger.

Following approaches by several parties, the council undertook a full public consultation process seeking feedback on the future of our stake in the airport. Through this process, the council received more than 600 submissions and heard about 30 oral submissions.

On Monday 3 September 2007, Auckland City Council resolved not to sell its 12.75 per stake in the airport but to amend its long-term plan to include a policy on ownership options for the council's shareholding.

The policy provides for a change in the structure of the council's stake in the airport subject to specified ownership parameters and evaluation against predetermined objectives and criteria. This includes a strict requirement that the council retains at least a 12.75 per cent shareholding.

Officers will undertake a full analysis of any proposals received by the council against the ownership parameters, objectives and criteria outlined in the airport shares policy. Officers will then report to council with recommendations at the appropriate time.

The council has now adopted a policy on ownership options for its Auckland Airport shareholding, called "Policy on Auckland Airport shares: An amendment to Auckland City Council's 2006-2016 Long Term Council Community Plan".

Updated December 2007