A Southland District Council (SDC) review into the operation of Te Anau's airport has already identified almost half a million dollars in savings following the completion of the investigation's first stage.

The SDC owned and operated facility has been plagued with controversy and losses since its construction in 2008, with local ratepayers stumping up the annual shortfall.

High capital costs and low passenger numbers have been blamed for operating losses, while building restrictions and a decision to use adjoining land for sewage effluent sparked widespread community backlash.

In May 2023 the SDC set up an airport review committee which included former Dunedin Airport CEO and Chatham Island airport director Richard Roberts, along with local councillor Sarah Greaney, local community board chair Diane Holmes and Great South Tourism and Events general manager Mark Frood.

Regional Development Agency, Great South, was subsequently tasked with not only finding a solution that would allow the airport to become commercially sustainable, but also to look at setting up a council-controlled trading entity.

Great South's General Manager - Strategic Projects, and Airport Project lead Stephen Canny said the now completed discovery phase had identified $495,000 in savings in the review of the runway investment.

"We have discovered a number of ways to reduce operating costs, and also to increase revenue for the operations."

"Over the next two months in particular, these will start to see the light of day."

Canny said they were now about halfway through the second - consultation - phase.

"We've had a tremendous amount of engagement, both through the public meeting processes and through direct inquiry and direct discussions."

This has included users and a range of interest groups, which has been highly successful, he said.

"Feedback from the aviation sector has been very positive and there has been a lot of really excellent ideas have come through this process," Canny said.

While Canny admitted there had been challenges, with the biggest one being satisfying inquiries around leases, he remained bullish about the future of Fiordland's airport.

"The one thing that's very clear is that the Te Anau airport, strategically, is a really critical airport for the region as a whole."

"[It] also ideally suits the new face of aviation going forward, particularly around short haul electric and hydrogen flight, as well as personal aviation."

"The aim is to really set this airport up to address those changes - not in the way that you invest beforehand - but you make sure the infrastructure and the ability to service the area is well and truly catered for."

"So there's quite a change ahead of us in the next five to 10 years."

Canny said the plan was not a pipe dream.

"The difference with this is that this is actually working with people to develop a plan, involving users and community. It's not just simply something random, that's happening."

"You've got a solid governance group around the project and you've got a very large number of people that are providing the advice."

"So this is really well [and] solidly grounded."

Canny said the project was on track with all 3 phases - Discovery, Consultation and Development - expected to be completed by December (2024).

"It's challenging but it's been also quite satisfying," he said.