Auckland Airport halts new runway plans
AUCKLAND Airport is suspending work on its second runway, the domestic jet terminal and other projects totalling $2 billion because of uncertainty caused by the coronavirus pandemic.
The company has also let go 90 independent contractors.
Although there had been no physical work on the second runway, plans were well advanced and approval for the project was expected later this year.
The company is also suspending work on a multistorey car park, Park & Ride South and construction of the 146room Mercure Hotel near the airport shopping centre.
‘‘Our longterm plans remain the same, but until we know more about how long the market will take to rebuild and recover, it’s not possible to keep these projects open, on hold and continuing to generate significant costs,’’ chief executive Adrian Littlewood said.
Some of the projects were in construction, several were about to start and it was important that the company made these decisions early before physical works began on site, he said.
‘‘For many years we have been working towards our ambition to build New Zealand an airport of the future, so, for our partners and the team here at Auckland Airport, it is enormously difficult to see progress stall.’’
He said that over the past week the company also had made the difficult decision to release about 90 fixedterm and independent contractors, who were working in positions that were no longer needed given the present circumstances.
These roles did not relate to essential airport services.
‘‘The decision to release these contractors was not taken lightly. Many of these people have strong connections to Auckland Airport and we are very sorry to see them go,’’ Mr Littlewood said.
Auckland Airport was also consulting a large number of its employees concerning a proposal to reduce hours and salaries by 20%.
The board, Mr Littlewood and the leadership team had already agreed to reduce their remuneration by 20%.
The company had taken steps to confirm its liquidity position and introduced measures to substantially reduce its future operating costs and capital expenditures. — The New Zealand Herald