IFT - Infratil

[LaserEyeKiwi]

I know that IFT love the cashflows and leverage that the Airport gives them.

But if there is one asset that does not fit their portfolio strategy now, it's Wellington Airport.

Hopefully they can package the business up and sell it on in the near future.

Will be interesting to see what happens with it as the other shareholder, Wellington City Council, is debating whether to exit its shareholding. Whether or not if infratil wishes to remain as owner, or dispose of it, it will be beneficial either way if they had 100% ownership.

On a related note, there is actually an interesting small threat to the monopolies currently enjoyed by New Zealand’s airports in the form of a new high speed transport alternative that may eat into some of the regional domestic market for NZ airports within a couple of years. If the business model of this new company linked to below actually holds up, it would mean Airports like Auckland & Wellington would increasingly be focused on long distance & high capacity routes, whereas regional routes that are linked by open water would have much better economics using these new aircraft that don’t have to pay any landing fees at an airport.

https://www.oceanflyer.co.nz/news-monte

NZ is a pretty good launch market for this product - most of our population live in coastal cities. Auckland to Tauranga would be a good route, as would Wellington to Picton, Nelson & Christchurch.

I wonder if port companies might end up with new revenue streams.