Amending Auckland International Airport Limited (AIAL) Shareholding Policy

The proposed budget includes a planned change to the Auckland International Airport Limited (AIAL) shareholding policy to allow us to sell some or all our shares in AIAL and use the money to repay debt.

What we are proposing

Selling all our shareholding (currently around 18 per cent of shares in Auckland Airport) would reduce our debt by around $1.9 billion.

This is projected to reduce interest costs on our debt to save an estimated $87 million per year, which is greater than what we’d expect to earn from the dividends if we kept the shares.

We have also considered other options, including both keeping all our shares, and a partial sale that reduces our shareholding while maintaining at least a 10 per cent shareholding (a so-called “blocking stake” – refer to page 89 of the consultation document (PDF 12.8MB)).

These options would contribute less towards our budget reduction.

You should know

This information is an edited version of the Annual Budget 2023/2024 Consultation Document.

See pages 85 - 90 of the Annual Budget 2023/2024 Consultation Document (PDF 12.8MB) for more information.