On 1 July Hawke's Bay Airport will be Corporatised. The significance of this should not be underestimated. It basically allows the airport to function as a company, without many of the strings attached with the Government as a shareholder. This is the first significant change in the corporate model since 1967.
Next week a new Board will be named, which will include two new faces. These people will be charged with running a commercial venture like any other business. Getting to this point has taken years and has been full of frustration as the region has sought for the Government to release some control.
In my view, the airport is one of our most significant yet underutilised assets. It is at a stage just like the Port of Napier was before it moved into containerisation. These directors and the owner had a vision, and we now have one of the best Ports in the country.
Most community focus is on the runway extension, and when it is going to be completed. It is on target to be done by mid 2011. There are still hurdles to be crossed along the way surrounding the leasing of some Landcorp Land and the introduction of a passenger departure levy, but I am confident these can be resolved.
The 10 million dollar investment in the runway extension is like any other long term investment in the region. It should be seen just like our roads. It is a key piece of infrastructure, and we will be pleased to have it as the region grows in the next 50 years.
The current recession has meant that the airline industry is under pressure, and Air New Zealand has reduced the number flights in and out of the region to reflect this. However, our thinking must remain on the future. A 1950 metre runway is likely to be all we need to cater for domestic jets and possible short haul international flights.
Another significant factor than can now be realised relates to the commercial development of the airport land itself. Airports make most of their money out of associated activities, rather than what is on the runway. The development of the new Air Ambulance service on site is the first example of this.
So roll on 1 July. It marks a significant milestone in the development of the region and I look forward to the new board doing some exciting things at our airport.
I’m Lawrence Yule
