KEY POINTS:
Auckland Airport chief executive Don Huse is adamant that if Auckland is to be competitive it must invest in world-class infrastructure.
Huse contends Auckland is finally starting to focus on its major challenges. The big issue is funding and how to mobilise savings.
A Metro Project champion, as well boss of a company which is a major contributor to NZ's economic health, Huse is not shy to say what's needed to get Auckland moving.
"The important thing is to be ahead of the curve," says Huse. "Not lagging behind. That simply compounds the felony [of doing nothing]."
He believes significant progress has been made through the close partnership between the Auckland Regional Council and Transit NZ. But much more is required.
Huse suggests more public-private sector partnerships and Government input into driving regional infrastructure development are needed.
At Auckland Airport, Huse puts into practice his philosophy of staying ahead of the curve.
The airport master plan confirmed it would be after 2015 before a new domestic terminal is needed, giving the company confidence to undertake a major upgrade meantime. On the international side, the arrivals hall is set for a major expansion to reduce bottlenecks in peak hours.
The masterplan forecasts potential annual passenger demand at 2025 to be 15m international passengers and nine million domestic passengers.
The international terminal is expected to expand westward with a second pier that will (ultimately) sport 12 aircraft gates, expanded check-in, departures and arrivals areas, and better duty-free shopping.
International visitors moving through Auckland Airport directly spend $4.88 billion in the national economy, generating $9.7 billion of GDP. Domestic travellors moving through the airport directly spend $438m in the national economy, generating $563m of GDP.
Huse who sits across the Metro Plan to produce a faster link between the airport and CBD in time for Rugby World Cup 2011 is heartened by the funding boost Auckland has received for the ring road.
But creating bus ways between the airport and the CBD is more tricky because two councils are involved.
In the meantime, the airport has established better traffic management and introduced pooling.
Its long-term plan provides for a rail-head which would take considerable regional investment.
A $2.9 billion takeover of Auckland Airport launched this week by Dubai Aerospace Enterprise has put the airport's future in play.
The $3.80 a share proposal has caused angst among those Aucklanders (and NZ First leader Winston Peters) who are concerned majority control of what they see as a major NZ strategic asset will shift offshore.
Auckland and Manukau city councils between them own 22.8 per cent of Auckland Airport.
Auckland City's 12.75 per cent stake is worth $592m and Manukau's 10.05 per cent stake $466m.
Whether the councils decide to take up the offer will not be known until shareholders vote in November.
Manukau Mayor Sir Barry Curtis is totally opposed to the Dubai bid. Sir Barry's principal concerns are: foreign ownership of the regions domestic and international airport, and, the loss of a long-term investment for our people.
Auckland Mayor Dick Hubbard is playing his cards close to his chest, but floated the idea of selling airport shares some months back. He believes they should only be sold to pay for more capital assets. Both mayors say the sale will become an election issue.
There are concerns about the implications for Air NZ if the Dubai link results in Emirates wanting to increase its presence.
Suggestions that a Dubai-controlled airport might use its monopoly powers to squeeze its airline customers was also a concern.
There are suggestions that if the airport stake is sold it would release funds for new infrastructure or a stake in a major new broadband network which would fit Hubbard's criteria.
More details of Dubai's strategy will be made public over the next couple of months.
One of the most exciting suggestions is that Dubai would seek to use Auckland Airport as a regional hub in the Asia Pacific, midway between Latin America and China, and to spearhead other airport investments in Australia and Asia.
The notion of forming regional transport hubs in Auckland has taken a while to bite, but offshore players do see the potential of using Auckland in the global supply chains.
An updated economic impact report shows Auckland Airport contributes approximately $19 billion to the NZ economy annually, an increase of 34 per cent since 2000.
Some 12 million people pass through Auckland Airport each year, including 70 per cent of international visitors (1.65m people).
The number of full-time jobs sustained directly, or indirectly, by the airport is 283,000, equating to 13.7 per cent of national GDP, and 15.4 per cent of national employment.
From a regional perspective, Auckland Airport contributes $10.7 billion to the local economy..
Huse believes (irrespective of any ownership change) that Auckland Airport can do much better.
Plans for a second, northern runway are working through approvals. It is expected to be operational in 2010 or 2011 and cater for general aviation, and small non-jet aircraft freeing up the existing main southern runway.
