Dear Queenstown Airport Corporation Limited,

Please provide me with a copy of the Strategic Alliance Agreement with Auckland International Airport Limited (the SAA).

I believe that you may have refused to release the SAA in the past on the basis that you consider it to be commercially sensitive. However I have found a summary of the SAA in an appraisal report written by PriceWaterhouseCoopers in March 2011. An edited transcription of page 22 of PwC’s report is set out below my signature.

Since the essential terms of the SAA are already publicly available, there is no longer a good reason for you to withhold a full copy of the SAA. On that basis I look forward to receiving a copy of the full agreement at your earliest convenience.

Yours faithfully
QLD Ratepayer

“The Strategic Alliance Agreement (SAA) records the intention of the parties, QAC and AIAL, to leverage the scale and connectivity that results from their relationship to grow travel, trade and tourism activities at all airports “wholly or partially owned or controlled by both parties.” The objective is to deliver superior economic growth to their communities and earnings growth to the parties.
The SAA sets out the basis on which the parties will collaborate and work together to achieve their growth objectives. In practical terms, the most significant element entails the parties working together to grow passenger numbers through attracting and retaining airlines and services. This is founded on the parties’ view that airports do not have to be passive providers of airfield and terminal services to which airlines choose to direct their services. There are opportunities to proactively market route opportunities to airlines to attract them to the airports. Having a network of airports located in prime destinations enhances the “offerings” to airlines.
The SAA also sets out the basis on which upon which AIAL’s industry expertise in the operation of all aspects of an airport business will be made available to QAC.
To give effect to the parties’ aspirations, the SAA includes:
• specific targets for increased activity and enhanced financial performance by QAC (Stretch Outcomes);
• a general requirement for both parties to apply their general business acumen and specialist knowledge and skills to achieve the purpose of the SAA and the specific targets, keep each other informed and generally act in good faith;
• specific contributions to be made by each party. In summary they require AIAL to share knowledge and initiatives and apply its skills and expertise to assist QAC in specific areas to grow is activity levels and financial performance. QAC’s obligations include:
~ work collaboratively with AIAL to achieve the outcomes desired by the SAA,
~ share and provide information
~ support AIAL in its position as a minority shareholder and in its relationship with QLDC.
The term of the SAA is 5 years from 8 July 2010. It then renews automatically for 2year periods unless one party gives notice of its intention not to renew.
There are provisions dealing with the situation where the Stretch Outcomes are not achieved. These are in the form of a dispute resolution process and do not contain any form of financial penalty. “