Plans to expand Marlborough Airport might not mean Dunkin Donuts or duty-free shopping, but it could mean new wine or food experiences.
Marlborough Airport wants to expand its operations in the mid-to-long term, but must first access neighbouring land. Photo: Scott Hammond / Stuff / Supplied
The airport is already using land leased last year to double its car parks, but is eyeing up other plots for possible commercial or industrial businesses to "soften the impact" of coronavirus.
However, before it can expand further, the airport needs to negotiate for more land from its immediate neighbour and the owner of Base Woodbourne, the New Zealand Defence Force.
It also needs to negotiate with the three Kurahaupō iwi - Rangitāne o Wairau, Ngāti Apa ki te Rā Tō and Ngāti Kuia - who have first rights to Defence Force land as a commercial redress for historical breaches of the Treaty of Waitangi.
The iwi bought two land parcels totalling 6.56 hectares off the Defence Force last year. The airport leased the plots from the Kurahaupō iwi, which it was using to add 300 new car park spaces, doubling its total parks.
Designs were still being finalised for the new car park, set to cost $3.3 million, with work set to start in January next year.
Richard Olliver, chairman of MDC Holdings Ltd, the council-owned parent company of the airport, said it was discussing what other land it could "open up" in the mid-to-long term.
"It's a key piece of land within Marlborough and hopefully we get to the position with the New Zealand Defence Force where we can look at developing that land in the future," Olliver said.
"It's early days ... it should be mutually beneficial for everyone."
Olliver said if more land was secured, the airport would let the Marlborough business community decide what was needed.
The land could possibly be used for retail shops, he said.
"... but in my view [this idea is] unlikely as regional airports aren't particularly conducive to retail shopping. Maybe more wine or Marlborough food experiences could work," he said.
Most airports in New Zealand owned commercial or industrial land, benefiting businesses such as freight forwarders, he said.
"Marlborough's airport doesn't, as - unfortunately - we're surrounded by vineyards or land owned by the Defence Force. That restricts the community's development aspirations.
"An airport is quite a good hub to set up an industrial complex as the runway is noisy ... it's harder to get noise complaints."
He said a third of Auckland Airport's income came from airport operations, with the remainder pulled from properties it owned.
Marlborough Airport chief executive Dean Heiford said new developments could help "soften the impact" of lost passenger numbers, which fell from 326,000 to 225,000 during Covid-19.
Twenty per cent of the airport's passengers were international tourists, who were unable to enter New Zealand due to strict travel rules, or workers, who had taken up virtual alternatives.
The slump was set to cut the airport's end-of-year profits from $900,000 to $100,000 and force it to borrow $1.1 million more than it had originally expected, bringing its total debt to $5.6m.
"There are some future developments that could get us away from the one-stage model of just aircraft coming in. There is huge potential for the Marlborough Airport in the future," Heiford said.
Kaikōura MP Stuart Smith, who had supported the airport's expansion in the past, said any development was progress.
"I think we're in for a tough time in the next few years, and we have to take our opportunities as they come. It's a simple economic development ... developing the land would bring with it other jobs, depending on what they developed there," he said.
Smith was unsure what development would best suit the area.
The three Kurahaupō iwi were approached for comment.
The airport was also attempting to modernise a historic licence agreement it had with the Defence Force to operate the runway and re-negotiate its licence fee charges, which could affect airline landing fees, and therefore domestic ticket prices.
A Defence Force spokesperson said negotiations to update the licence and potentially increase airport operations began in mid-2018. These were ongoing and commercially sensitive.
The airport's terminal was upgraded in 2015 for $4m. It doubled in size with a separate rental car area, new offices, a covered baggage claim area and a larger passenger lounge.
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