Auckland International Airport in New Zealand has acquired a 24.99% stake in Queenstown Airport for NZD27.7m ($19m).
Auckland Airport will have the option to raise its stake to 30-35% by 30 June 2011 as part of the agreement.
The two airports will work together to increase international passenger volumes by strengthening air services development and dual-destination tourism promotions.
Both airport companies will enhance aeronautical operations, retailing activities and property development.
Queenstown Airport expects to achieve an additional 176,000 passengers annually within five years, following the alliance.