Auckland International Airport, which is subject to a international takeover bid, said on Oct. 4 that work has started on a second runway.

The first stage of construction will be involve a runway 1,200 metres long completed by 2011, handling mostly domestic and freight flights from non-jet aircraft.

Auckland Airport chairman John Maasland said the new runway would free up capacity from the existing runway, and its construction had been anticipated since the airport was built in 1968. Shares in Auckland Airport, a top 10 company which handles about 70 percent of New Zealand's international air traffic, last traded down 2 cents at NZ$3.13.

It was the subject of a failed NZ$2.6 billion (US$1.95 billion) takeover bid by Dubai Aerospace Enterprise in September, while Canada's Pension Plan Investment Board intends making an offer for up to 49 percent of the airport.

Auckland Airport said the runway, located to the north of the existing runway and terminals, will eventually be 2,150 metres long.