Auckland Airport Shares

The Auckland and Manukau City Council shareholdings in Auckland International Airport do not give them control. In fact if anything their ownership interest may restrict their advocacy ability on airport issues.

So the decision on whether to sell should be a commercial one. Will they make more money by retiring debt, from the sale proceeds, or from dividends?

The NZ Herald editorial points out the conflict of interest that Councils can have as part owners of the Airport. It would be in the public interest to have a rail link to the airport, but not in the interests of the airport company who could lose massive revenue if this happened.

Even Brian Rudman thinks it is sensible to sell.

Surprisingly ex Mayor John Banks is against a sale of the ACC’s 12.75% shareholding. I can’t work out why.

UPDATE: It seems Banks is not against – see comment by Aaron B in the comments.