Skyline mulls gondola at Franz Josef Glacier

Tourism company Skyline Enterprise, whose shares have soared 80% in the last 12 months, is exploring constructing a 4km gondola at Franz Josef Glacier.

Skyline already runs gondola attractions in Queenstown and Rotorua, and its subsidiary Glacier Helicopters offers flights to the West Coast glacier.

Chief executive Mark Quickfall says the company has been talking to the Department of Conservation about developing a gondola and is now moving to a feasibility study of the project.

“Investigations, planning, consultation and securing support from a wide range of stakeholders will determine if the potential installation of the gondola is realistic. This will take time, commitment and patience,” he says.

The gondola’s investment cost is part of the investigation, says Mr Quickfall.

“It’s early days to be frank. We’re just moving through that more detailed finance modelling at the moment.

“With the numbers going down the West Coast and the forecast growth in tourism we expect this to be viable, but it will be a significant investment.”

About 500,000 people pass through the West Coast a year, but a collapse of the glacier face in 2012 has restricted access to the glacier itself.

“This prevents many visitors from experiencing the Glacier up close – outside of viewing from the base – unless they take a flight, which is not always an option due to weather conditions and cost,” says Mr Quickfall.

“This would open it up to a far greater number of people.” 

The proposal would involve gondola towers anchored to rock adjacent and above the glacier, with the potential start point at the car park above the village.

Although the cost would be substantial – an upgrade of Skyline’s Queenstown gondola is budgeted to cost $60 million – the company has a strong balance sheet with net assets of $321 million and operating cashflow of $61 million.

For the year to March 31 Skyline reported revenue of $180.5 million and net profit of $52.5 million.

Directors declared a dividend of 50c a share as well as a special dividend of a further 5c.

Skyline shares, which trade on the Unlisted market, last changed hands at $25, up from $13.76 a year ago.

Time in the sun
“Tourism is having its time in the sun,” says Mr Quickfall. “It’s all cyclical of course but at the moment it would be fair to say anybody trading in tourism is in a lot better space than they were just after the recession. It’s quite buoyant at the moment and we’ve seen good growth, particularly out of the Chinese market.

“Going forward unless there’s some unexpected world event, we’re in for good times.”

Skyline says its investigation of the gondola project is dependent on environmental, technical and economic feasibility.

“Skyline will consult a wide range of stakeholders in this regard, including Te Runanga o Makaawhio, Ngai Tahu, Franz Josef Community Council, West Coast Tai Poutini Conservation Board, Westland District Council, alpine groups, recreational users and all other relevant parties,” it says.

DOC is currently reviewing its management plan for Westland National Park. Pre-draft consultation closes on October 21. A draft plan is due to be published for consultation early next year. 

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