Airport Authority to retain management of Cooks' terminals

The management of the Rarotonga and Aitutaki Airport will remain with the Airport Authority, the Cook Island government has decided.

In his financial statement on the 1999/2000 Appropriation Amendment, the prime minister. Dr Terepai Maoate, said the move reflected the Coalitibn’s strong commitment to retain key national assets.

In addition, the Prime Minister said the decision clearly displayed “the confidence we have in our own people to continue a job they have competently undertaken for 15 years.” The Cook Island cabinet’s decision for the Airport Authority to retain

management came after lengthy negotiations with YVR Airport Services, a Canadian company, and consideration of a number of management options, including a joint venture.

High-level talks with YVR began about three years ago when the previous administration had tried to sell off both airports, but then took up the consideration of a management arrangement. The Coalition Government’s Board of the Cook Islands Investment Corporation (CIIC) had since undertaken to resolve a stalled process.

Although the YVR proposal did not secure cabinet approval, the government was pleased with the professional, working

relationship it has established with the Canadian firm, and wants to encourage these links to explore opportunities for cooperation.

A priority area of focus is a more effective management structure for the Airport Authority. The government acknowledges that problems have persisted with trying to manage the airports in a profitable manner. The access to sufficient financial resources from the Departure Tax had also contributed to difficulties in the past. Professional advice is now being sought from YVR, and this may involve securing expert personnel to assist with refining the management structure. ■