Crux podcast: CEO Glen Sowry opposes potential QLDC sale of airport

Queenstown Airport Corporation chief executive Glen Sowry says that the airport should stay in community ownership and not be considered as part of any debt reduction by the Queenstown Lakes District Council.

In Wellington and Auckland councils are using the sale of their airport shares to reduce the burden of local government debt.

But Mr Sowry has told Crux that the airport contributes between $300 and $400 per ratepayer in council dividends each year, money that otherwise would produce further QLDC rates increases.

He adds that the airport has its own ability to borrow independently to pay for the expansion of terminal facilities or extra safety features, so there’s no risk of the airport increasing QLDC's debt burden.

The QLDC has not announced any plans to sell the airport or shares in the airport but is relatively close to its debt limit and struggling to find alternative revenue. The current draft long term plan forecasts over a billion dollars of council debt by 2030.

Speaking in the latest Crux podcast episode Mr Sowry also reveals he is actively rationing flights into Queenstown in order to avoid congestion and the overloading of facilities and infrastructure.

He describes the system as “slot control”, where Queenstown Airport dictates landing slots to airlines, to avoid congestion, rather than giving airlines the freedom to select landing slots that simply suit their own schedules.

Mr Sowry says he has the leverage to do this as airline demand to fly into Queenstown exceeds supply.

Asked if there is a limit to Queenstown growth Mr Sowry says that until there is sufficient public transport and a reduction in road congestion growth needs to be managed.

“If we suddenly had sufficient infrastructure then our attitude to growth may be different.”

Speaking about the future of Wānaka Airport Mr Sowry says a community consultation process on that is to be managed by the QLDC, and then implemented by the QAC. He speculates, though, that the likely profile of Wānaka Airport would focus on the Air New Zealand ATR turbo prop fleet.

“I understand that Air New Zealand has no plans to introduce the type of small regional jets that are used widely in the United States, so the ATRs are perfect feeder aircraft to connect Wānaka with Wellington and Christchurch.”

Mr Sowry also explains in the Crux podcast how his style of open, transparent leadership has managed to improve the airport management culture in a relatively short period of time.

"One of the things early in my tenure that we did was spent an awful lot of time listening to people about what their thoughts and perspectives were on the airport, what we did well, and what frustrated them.

"A really common theme started to develop, and that was that people genuinely wanted to feel pride in their airport. I think understanding that we are 75 percent owned by QLDC, which in turn represents the ratepayers of the district, is a pretty important point to remember.

"We're here to serve the community, both the people that live here and the businesses that operate here. And there's a real balance around what the airport can and should be and, and equally, what it should not be.

"We're very clear that we are a gateway to our region. We're increasingly important for people who choose to live here. And post the structural change that occurred in Covid, we're important for people who live here and commute to other cities, or even countries, to work.

"One of my main jobs is to be a guardian or custodian, if you like, of of this asset, to make sure that it's fit for purpose and will meet the needs of the community and our economy into the future."

This week's podcast also includes detail from Kim Bowden on the combined police and QLDC search warrant connected to the Skyline gondola, Lauren Pattemore's take on the ongoing dramas around parking in Arrowtown and a look at what makes the Bush Creek community ice rink project so special.