Hawke's Bay Airport

Today I want to give you an update on where we are with the Hawke's Bay airport. Many of you will have seen the recent pictures of the long-term development plans for the airport including a substantial business park and associated facilities. This is an exciting plan and begins the journey of developing this key strategic asset.

The councils have already agreed, in principle, to extend the runway and we are very close to corporatisation which will allow the airport to act like any other business.

This will allow the borrowing of money, the development of commercial activity on the non-runway land and, importantly, an opportunity to transform the asset in a similar way to the Port of Napier. I am constantly asked when the runway will be extended.

It is my hope this can be completed by the end of 2010 in time for the Rugby World Cup in 2011. The Rugby World Cup is a significant opportunity for the region and the upgrading of the airport and McLean Park need to be completed by then.

If we have a jet capable aircraft, we have a real opportunity to host a key rugby nation as part of the tournament. A more vexed issue surrounds the ability of the region to establish some sort of international service.

The recent demise of the OzJet service in Palmerston North shows how difficult such a concept can be. We have some significant natural advantages over Palmerston North as a destination.

The key, however, is to determine if we can actually attract an airline and under what terms. A further investment of nearly 6 million dollars is required to make the airport international. It is prudent only to make such an investment after a contractual arrangement has been established with an airline. So, in summary, it is all go at our airport.

Over the next few months I will be making it a significant priority to complete the corporatisation and begin the building of the extended runway. At the same time I am asking a number of interested parties to put a concept together to attract an international carrier.

I am unsure if this is possible or not. But the old adage applies. Nothing ventured, nothing gained. We have to, at least, put our best foot forward and ask the question. Those are my thoughts for the week.

I’m Lawrence Yule.