26-Mar-2020 9:35 AM

Auckland International Airport outlines COVID-19 mitigation strategies, suspends second runway

Auckland International Airport outlined (26-Mar-2020) the following coronavirus mitigation strategies, as international passenger numbers are expected to be "close to zero in the near term":

  • Take steps to confirm its liquidity position measures to reduce operating costs and capital expenditures. The airport has unrestricted cash of NZD340 million (USD197.2 million) and an additional NZD485 million (USD281.3 million) of undrawn bank facilities;
  • Suspend selected capital expenditure projects with a completed value of more than NZD2 billion (USD1.2 billion);
  • Eliminate all discretionary spend where possible;
  • Review a 'small number of projects' and suspend its second runway, tDomestic Jet Hub, a multi-storey carpark, 'Park and Ride South' and construction of the 146 room Mercure Hotel near the airport shopping centre;
  • Complete runway pavement upgrades;
  • Propose to reduce employee hours and salaries by 20%. Auckland Airport board of directors, CEO and leadership team to reduce remuneration by 20%;
  • Release 90 fixed term and independent contractors. [more - original PR]

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