Infratil says Whenuapai bid still alive

Infratil says its bid for a second Auckland airport at Whenuapai is still alive and has cost only $1 million to date.

The Government this week refused to endorse the plan for an airport at the Air Force base, saying the military would not be moving out until 2010 at least.

In partnership with the Waitakere City Council, Infratil was planning to run the new airport, designed for budget airlines flying smaller aircraft domestically and to Australia and the Pacific.

Infratil owns 100 per cent of Prestwick Airport, near Glasgow, and two-thirds of Wellington International Airport. It is investigating new opportunities for setting up airports in Eastern Europe.

Its share price dropped only slightly on the Government's announcement, falling 5c to $3.33.

Infratil had promised to invest up to $50 million in the initial work needed to bring Whenuapai up to scratch for commercial aviation use.

Infratil executive Tim Brown said the company's shareholders knew that not all its development projects succeeded, so had not "banked" them yet. "We try to make it very clear to our shareholders that until we've actually got the runs on the board, don't start factoring them in."

North Shore Mayor George Wood, who supported the second airport plan, said Infratil might have "aimed too high" with its plans for international flights. This meant a much greater Government investment in customs, security and border protection.

A second airport aimed primarily at domestic flights might have had a better chance of attracting Government support.