Napier Mayor Kirsten Wise welcomes the announcement today of a loan to Hawke’s Bay Airport to enable it to complete its planned extension and support for the operating costs of the business over the coming year.
“Hawke’s Bay Airport Limited is an important asset to both our community and our regional economy. The airport industry has been heavily impacted by Covid-19, and as a shareholder it is important that we are there to support the work that is necessary to enable our airport to meet its obligations. As restrictions will ease eventually, I have no doubt that this business will enjoy the same financial success it has achieved in the recent past.”
Hastings Mayor Sandra Hazlehurst says the airport is a vital economic and business gateway and it is essential to our economy and recovery from COVID-19.
“The lockdown meant the Hawke’s Bay Airport lost 95% of its business in a matter of days and it still has its terminal expansion to complete. The airport is a strategically important asset to our economy and our community and as a shareholder, we are pleased to be able to support them while they get back to full recovery.
“It is great that we can provide the Airport with the necessary financial support while at the same time, not impacting the ratepayers with the Airport paying the necessary interest on it.”
The loan is being funded based on each entity’s shareholder percentage - Crown 50% ($4.5mil), Napier City Council 26% ($2.34mil) and Hastings District Council 24% ($2.16mil).
Wendie Harvey, HBAL Chair states that, ‘’The Board of Hawkes Bay Airport are highly appreciative of our Shareholders agreement to the $9 million Loan Facility entered into and in doing so wish to convey our appreciation and thanks for the ongoing support and commitment to the organisation demonstrated by the Crown, Napier City Council and Hastings District Council.
The Board and HBAL Management has identified a number of key strategies to support a robust recovery in line with Shareholder Expectations and supporting the essential role that Hawke’s Bay Airport plays in the post-COVID-19 recovery of the Hawke’s Bay region with a strong focus not wholly dependent on aeronautical derived revenue’’
HBAL CEO, Stuart Ainslie stated, ‘’management have already taken significant steps to right-size its operations to enable HBAL to recover to profitability as efficiently as possible and support the necessary compliance and capital expenditure focusing on future resilience and revenue diversification as we progress into FY21. We look forward to working to deliver optimised shareholder returns and greater value to the Crown, Napier City Council (NCC), Hastings District in line with our revised Post COVID Strategy & Recovery Plan”
13 July 2020
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