5 questions lodged at 2024 AIA International hybrid AGM

Q1. Based on his experience as CFO at Melbourne Airport, which also controls the smaller Launceston Airport in Tasmania, could new director Grant Davenport comment on whether he believes the proposed Tarras International Airport poses a risk to investor returns based on our current shareholding in Queenstown Airport. Sydney Airport is a one airport operation. Does Grant believe it makes sense to own multiple airports given the obvious competition issues? Could the CEO also comment on this issue.

Answer: The out-going chair took this one and provided an interesting response bagging the Christchurch airport proposal. Watch video of exchange via Twitter.

Q2. As the chair of the committee which deals with remuneration matters, could Tania Simpson please comment on whether she would support putting the remuneration report up for a non-binding vote at next year's AGM, as is required by law in Australia. As the incoming board chair, could Julie Hoare also comment on this issue and at least undertake to seriously review the matter. What harm is done from asking your shareholders what they think about our remuneration policies? Not doing this makes New Zealand look like a governance backwater.

Answer: The out-going and incoming chair both rejected this request but said shareholders were pushing for greater rem disclosure. Watch video of exchange via Twitter.

Q3. Dean Hamilton was on the board when we did our emergency capital raising shortly after COVID hit in 2020 which ambushed our biggest shareholder, City of Auckland, and diluted them down from 21.4% without compensation. We seemed to have learnt nothing and did another $NZ1.2 billion placement this year, which again diluted City of Auckland ratepayers without compensation. Why didn't Dean and the board support pro-rata renounceable capital raisings which compensate non-participants and treat all shareholders equally and fairly?

Answer: The chair defended the raise without inviting Dean to speak. Watch video of exchange via Twitter.

Q4. It must feel quite strange having the former CEO of our biggest customer, Chris Luxon, suddenly become Prime Minister of the country. There are always tensions between airlines and privatised airports. The chair mentioned his disappointment with Air New Zealand's lack of support for our expansion plans. How important is support from the Luxon Government when it comes to getting this project up and does he bring negativity towards us to the table based on his history at Air New Zealand?

Answer: The chair said Luxon had more issues to worry about than past gripes with AIA and the government is broadly supportive, despite Air New Zealand's opposition. Watch video of exchange via Twitter.

Q5. Jarden & Macquarie were paid a juicy 1.3% base fee to manage the recent $NZ1.2b discounted placement which was money for jam given they were on risk for barely 2 days. Did we run a proper tender before agreeing to pay this $NZ15.6m base fee on the placement & did we end up paying the additional 0.3% incentive fee? If so, what work did they do to justify a $NZ20m fee for clipping the ticket on an easy raise which diluted retail shareholders, particularly given that you scaled back the $NZ200m SPP, repeating the 2020 shafting.

Answer: The chair talked up the risk taken by the under-writers and success of the raise and made no apologies. Watch video of exchange via Twitter, plus these additional comments.

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