Central Otago airport plan stalls amid headwinds + P + V

Written by ANDREW KACIMAIWAI
Images, video supplied

THE vision seemed simple enough: build a new airport in central Otago and they will come (the ‘they’ being international and domestic passengers).
Then came the headwinds.
The vision belonged to Christchurch Airport Corporation and involved building a new regional airport in the Central Otago town of Tarras.

The headwinds came from regional airport operators, community activists and lobby groups.
One common complaint was about a lack of detail about the proposal, which would involve a regional transport hub being built in the heart of wine country with upgraded roads in a region that is subjected to landslips.
In late February, Christchurch Airport put the project on hold after it had spent more than NZ$40m to buy 750ha of farmland in 2020, according to media reports.
In a letter sent to Christchurch City councillors and published online, Christchurch City Holdings (CCHL) chairwoman Abby Foote said that future work would slow down.
“.. the CIAL Board made a decision to slow down any further work on the Central Otago project,” she said in confirming the authenticity of a letter CIAL sent to councillors.
“In taking the time to reflect on the substantial work done to date – largely focused on proving the aeronautical viability of the land acquired in Tarras, along with potential changes to the national infrastructure planning, funding and delivery frameworks signalled by the new government – the CIAL Board has signalled that a more cautious approach is warranted,” Ms Foote said.
CCHL supported the decision by the CIAL board, she added.
“As a result, we do not expect significant amounts of capital to be committed to further investigations into a new airport in Central Otago in the short-term.”
She conceded that “stronger stakeholder alignment” was needed to make the airport project succeed.
“It will also require confirmation that the significant co-investment required from national, regional and local stakeholders, both public and private, is accessible.”

CCHL acting chief executive Paul Silk said all of their subsidiary companies faced tighter capital constraints as the group committed to lifting performance, improving dividend flows to council, and paid down debt.
“We have been advised by the CIAL board that they have taken the decision to take further time to reflect on the status of this project, noting that the challenge of accommodating the future resilience, economic growth and infrastructure needs of this fast-growing region has not changed.
“We will continue to work alongside CIAL on all potential growth initiatives. We support CIAL’s decision to take time to reflect on the significant amount of information gathered to date, and in the context of new information emerging at a national and regional level,” he said.
“This includes the region’s strong desire to ensure transport infrastructure is aligned with a pivot toward sustainable tourism, together with the potential changes to infrastructure planning, funding and delivery frameworks signalled by the new government.
“As the majority shareholder, we appreciate there are a wide range of views on the Central Otago project.
“We support CIAL undertaking long-term strategic work on issues around regional tourism, economic growth and the future of sustainable aviation right across Te Waipounamu (South Island).
“This includes an expectation that they will continue to engage effectively with local communities.
“With substantial work now completed on the Central Otago site, we will focus our work with CIAL on other opportunities that exist to deliver the strong returns required to support the objectives of the wider CCHL Group, council and Christchurch ratepayers.”

THE CASE FOR
Earlier, Christchurch Airport chief executive Justin Watson said a 2.6km runway was needed to ensure it can land flights from Australia, the South Pacific and South-East Asia.
“Our team has been working with experts to understand what the region might need in 20, 30 or 40 years and how a new Central Otago airport could support the social and economic wellbeing of the region.”
Airport Chief Strategy and Stakeholder Officer Michael Singleton says demand for air connections with Central Otago was likely to far exceed the region’s current capacity in the next 30 years.
“This could result in the region spilling more passengers than it serves by 2040,” he said.
“Increasing capacity at existing infrastructure will only move the problem out a few years. This is likely to have a far greater impact on residents, as visitors are more likely to book earlier and pay higher fares.
“Demand for travel to and from Central Otago will continue to grow even if air capacity is constrained.

“Doing nothing about air capacity constraints will simply cause congestion and inefficient travel patterns,” Mr Singleton said.
“If we do nothing, there could be between two and three people vying for every available seat to and from the region by 2050.”

A preferred runway alignment and realistic runway lengths has been identified, according to a project report.
“A runway aligned to the Lindis Valley and Lake Dunstan stood out for its safety, operational efficiency and having a lesser noise impact on the communities in Central Otago,” Mr Singleton said.
“The alignment also provides greater flexibility for aircraft types, which is particularly important to enabling the next generation of low emissions.”
Radio NZ said the alignment was northeast to Lindis Valley and south to Lake Dunstan Valley, which would have seen aircraft depart over Cromwell or through Lindis Valley, and almost four million passengers by 2050 if it had been operational by 2030^.
“Runway length is a key enabler for regional growth, connectivity, resilience and prosperity over the long term. This is why we spent time understanding the range of runway lengths realistically achievable on the site,” Mr Singleton said.
“Based on the information we’ve seen so far, a runway between 2200 and 2600 metres is likely to be feasible on the site and would provide Central Otago with infrastructure fit for a low carbon future.”

THE CASE AGAINST
The project had been controversial since it was revealed with many raising concerns about over-tourism, environmental impacts and fears a new airport was irresponsible in a climate crisis.
Local groups and an organisation of academics called Informed Leaders are challenging the plan, claiming it goes against efforts to control tourism in the region.
Last September, young climate activists from School Strike for Climate Otautahi (Christchurch) staged a protest against the proposal.
Three years ago, plans by the Queenstown Airport Corporation (QAC) to upgrade neighbouring Wanaka airport to jet-capable was defeated after the Wanaka Stakeholders Group successfully appealed for a judicial review to the country’s High Court which cancelled the QAC’s 100-year lease of the airport.
Wanaka Airport is host to the country’s largest airshow, a bi-annual event, while NASA has established a semi-permanent presence for atmospheric balloon launches.
Queenstown Airport CEO Glen Sowry also argued there was no need for a fourth international airport in the South Island.
“Christchurch Airport is spending tens of millions of dollars just to ‘explore a problem’ with no fixed outcome in sight. In my view, it is pitching a solution in search of a problem,” he said.
“We can all agree that New Zealand is facing infrastructure challenges but a shortage of airports is not one of them.”
Mr Sowry claimed that Christchurch Airport wanted to build an international airport operating 24 hours a day on farmland it bought in Tarras to meet “an unmet need” in the Southern Lakes region.
He points out that Christchurch Airport is a Christchurch City Council asset and is a commercial organisation, not an altruistic one.
“The people of this region, who have few means to influence the project, have made it clear they do not want a flood of extra visitors. They want sustainable tourism, not over-tourism.”

He said the Queenstown Lakes and Central Otago district councils have destination management plans to achieve sustainable tourism.
Mr Sowry also hit out at comments made about his airport.
“In trying to build a case for its Tarras project, Christchurch Airport made many unsubstantiated claims about Queenstown Airport, including that we do not have room to expand,” he said.
“We have plenty of land and our capacity constraints are the result of community consultation, not physical constraints.”
He said a draft Master Plan allowed for passenger numbers to increase by a third by 2032 and for further expansion beyond that.
“If this project is foisted upon Tarras, it is the communities of Central Otago, Upper Clutha and Queenstown that will bear the brunt of the environmental costs and additional strain on infrastructure,” he said.
Mr Sowry also said Dunedin Airport will complete its own 2050 Master Plan by the end of next year and that it serves a larger population base than all of Central Otago with Dunedin residents “very keen” to see the return of international services.
“Queenstown Lakes District Council has said it will be consulting on the future of Wanaka Airport soon. Similarly, Invercargill Airport is undertaking long-term planning and will soon be consulting the public on its planned terminal expansion.”
He said Christchurch Airport was also “silent” about its own international airport.
“What it is planning 400km away in Tarras is not a small regional airfield; it is a large-scale airport capable of handling widebody long-haul jets from Asia and beyond, operating around the clock.
“Inevitably, passengers flying into Tarras would bypass Christchurch, which has successfully rebuilt a vibrant business community and tourism industry after the 2010-11 earthquakes.
“Christchurch Airport’s briefing to Treasury states 70% of passengers to the proposed Tarras airport would come from overseas. By comparison, about 30% of Queenstown Airport’s passengers arrive on international flights from Australia.
“The focus is ramping up visitor numbers dramatically, which is plainly at odds with community sentiment. The communities of the Southern Lakes do not want their home to become an alpine version of Venice.
“This is a spectacular part of the world. We know people want to come here but the idea that we need to submit to limitless growth and fuel turbo-charged tourism is outdated.
The conversation has moved on.”
Land infrastructure assessments produced by Christchurch Airport talk of the proposed site being well connected to the state highway and that traffic in the area is due to increase regardless of a new airport or not.
It also talks about landslip and rockfall risks (among others) to roads which it admits are increasing in complexity and uncertainty due to climate change.
Their case argues for a sub-regional public transport network by providing the daytime demand (i.e. air passenger traffic).
But the assessment, while conceding road access for the airport has to be considered, as well as local land transport use says those needs will be assessed only AFTER more site work.
Some analysis say traffic volumes on state highways will grow but only add to low base volumes and unlikely to result in congestion.