Regional Development Minister Shane Jones. Photo: RNZ / Samuel Rillstone
- Controversy is building around Hamilton Airport's designation
- A letter to the regional development minister is inflaming the situation
- The airport says it wants to talk further
Hamilton Airport has accused Regional Development Minister Shane Jones of spreading misinformation that casts the airport in a negative light.
The accusation came in a letter sent to the minister by the airport - Jones says the letter misrepresents his comments.
But Waikato Regional Airport Ltd (WRAL) said the tone of a letter was entirely appropriate and it extended an invitation for further talks about the airport's runway extension designation.
The letter from WRAL group general manager of airport operations, Ben Langley, was sent to Jones hours after last Friday's Waikato Regional Summit in which the minister told leaders it would be perilous to let the airport's designation lapse.
WRAL and its five shareholders, Hamilton, Waikato, Waipā, Matamata-Piako and Ōtorohanga councils, began the process in 2023 to let the 15-year designation lapse in 2026 after a business case showed it would cost more than $100 million to build the extension.
At present, the runway is 2200 metres long and the designation, granted by the Crown in 2011, means it can be extended to 2900m to cater for wider aircraft.
Langley said in the letter, obtained under the Official Information Act, Jones insinuated the lack of runway caused the airport to miss an opportunity in the past six years for flights from Singapore.
"This is misinformation and it would seem you have been poorly advised, as there has not been a direct engagement with the airport company from Singapore in the last 10 years, and the airport company has always remained receptive to any and all aeronautical opportunities."
Langley also addressed Jones' comments about the designation.
"You surely appreciate a decision of that magnitude is not taken lightly by the WRAL board, and therefore involved significant technical, legal, planning and strategic advice."
Hamilton Airport. Photo: Google Maps
Jones was scathing of the letter saying it misrepresented his comments and there was no misinformation, a "serious allegation to make against a senior Cabinet minister".
He called the letter unprofessional, odd, defensive and panicky and referred to Langley as "gormless" and junior.
"The tone, the content of the letter is overblown and I'm going to get some facts as to what's really going on, around the discussions of the designation."
Jones said he felt the letter did nothing to strengthen his relationship with Waikato civic leaders, and warned if the region did not take up growth opportunities, other areas would.
Hamilton City councillor Ewan Wilson, who wants to see the runway extended, said Jones' aspiration for regional growth was crucial and he was disappointed by the letter.
"I am horrified to think that a council-controlled organisation, whose critical role is to satisfy the needs of its shareholders who have invested in this airport because of its strategic position and its ability to enable economic growth, if that has eroded or damaged a relationship with Wellington that is incredibly disappointing.
"I don't believe the minister misspoke. I think the reality is that the airport company - in my view - has made a mistake in deciding they would relinquish the designation and I think the minister is wise to highlight the opportunity and the importance of it."
Wilson said the designation was an intangible asset to the $250m airport.
"In my mind it's commercially naive to accept that in perpetuity there would be no demand for wide-body long-haul services out of Hamilton and by letting the designation lapse I think in my view that is committing the airport to its current length.
But WRAL chief executive Mark Morgan defended the letter saying it sought to ensure Jones was well-informed and he hoped talks would continue.
Morgan said the decision to let the designation lapse would be reviewed next year.
"Since that decision was made, we have attracted international flights from Jetstar," Morgan said.
"As always intended, we are currently investigating whether there has been enough significant change, based on Jetstar but also other factors, to rethink the runway extension designation status."
He defended the business case and said there was no evidence a new one was necessary yet.
"The designation review process included robust independent review from multiple sources, and the conclusion was clear: a $100m investment to create a marginal additional capability was not a viable commercial decision and could not be justified at that time."
Morgan said the government was approached by WRAL a decade ago about using Hamilton as an alternate to Auckland for wide body jets, but the proposition did not gain any traction.
"The airport company remains very open to government investment in the airport to help with resilience for the upper North Island. We discussed this directly with the minister in Hamilton and again, would welcome further discussion on this."
Morgan also defended WRAL's property development around the airport as making it financially resilient during the Covid-19 pandemic.
"Our property developments do not infringe on current aeronautical operations, forecast growth expectations, or on the runway extension designation requirements. Nor do they impact on the future growth of key infrastructure."
He said none of the north precinct of Titanium Business Park would preclude the runway from extending, when stage one begins in the New Year with the unlocking of 10 hectares of land for development.
